CSRD Reporting for Law Firms and Accounting Practices

Law firms and accounting practices are not typically viewed as high-impact industries, yet under the Corporate Sustainability Reporting Directive (CSRD), professional service providers play a key role in Europe’s transition to a transparent and sustainable economy.

This guide explains how small and growing law and accounting firms can start aligning with CSRD principles or use the Voluntary Sustainability Reporting Standard for SMEs (VSME) to demonstrate good governance, social responsibility, and environmental care — without excessive complexity. For practical guidance, see how to report energy and commuting data for office services and how legal small and growing businesses (SMEs) can prepare for client CSRD questions.

1. Why CSRD Matters for Professional Services

The CSRD (Directive (EU) 2022/2464) requires large companies and certain listed SMEs to disclose detailed sustainability information. While most law and accounting firms are not directly in scope, they are part of the value chain of larger clients who are.

This means your firm may soon be asked to provide sustainability data on:

• Workforce diversity and wellbeing,
• Office energy use and carbon footprint,
• Anti-corruption policies and governance structures,
• Community engagement and pro bono work.

Firms that can respond efficiently to these requests will be seen as credible, compliant, and partnership-ready in the eyes of major corporate clients.

2. Who Must Report Under CSRD

You’re directly subject to CSRD if your firm exceeds two of these three thresholds (on a consolidated basis):

If you’re below these thresholds but want to align with EU sustainability expectations, use the VSME Standard (EFRAG, 2024).

The VSME offers a proportionate, voluntary framework for micro, small, and medium-sized companies in all sectors — including professional services.

3. Where Law and Accounting Firms Have Impacts

While these sectors are service-based, they still influence environmental, social, and governance (ESG) outcomes through operations, culture, and advice.

Even small and growing firms can meaningfully report on these topics using the VSME Basic Module (B1–B11).

4. Applying the VSME Basic Module to Law & Accounting Firms

B1 – Basis for Preparation

Start your sustainability report with:

• Legal form (e.g. limited liability partnership);
• NACE code (e.g. M69.10 – Legal activities or M69.20 – Accounting, bookkeeping and auditing);
• Number of employees and turnover;
• Country of operation and office locations;
• Statement that your firm uses the VSME Basic Module.

B2 – Practices, Policies, and Future Initiatives

Describe how your firm manages sustainability topics:

• Energy & environment: renewable electricity, reduced printing, digital archiving.
• Social: training programmes, parental leave, flexible working.
• Governance: ethics code, anti-money-laundering (AML) procedures, client screening.
• Community: pro bono work, financial literacy workshops, local engagement.

Example: “Our firm is committed to net-zero office operations by 2030 and maintains ISO 14001 certification for environmental management.”

5. Measuring Environmental Metrics (VSME B3–B7)

Even in low-impact sectors, tracking basic environmental data matters. Start with what’s material to your operations:

B3 – Energy and Greenhouse Gas (GHG) Emissions

• Collect electricity and heating bills to calculate annual energy use (kWh).
• Convert to emissions using national grid factors (Scope 2).
• Add company vehicle or generator fuel use (Scope 1).
• Report GHG intensity per employee or per € turnover.

B6 – Water

Record annual water use from supplier bills. Small offices can report total cubic metres (m³) used.

B7 – Waste and Resource Use

Measure:

• Office waste and recycling rates.
• Use of recycled paper and e-documents.
• IT hardware recycling or donation schemes.

Example: “All obsolete laptops are donated to local schools through a refurbishment programme.”

6. Social and Workforce Metrics (VSME B8–B10)

These are often the most material topics for professional firms.

Include any diversity and inclusion targets, and highlight mental health initiatives or remote working policies.

7. Governance Metrics (VSME B11)

Law and accounting firms already have strong governance cultures, which makes this section straightforward. Report on:

• Anti-bribery and anti-corruption policies
• Data protection measures (GDPR compliance)
• Number of fines or convictions (ideally zero)

If your firm operates internationally, note any AML or compliance audits conducted.

8. Optional: The Comprehensive Module for Larger Firms

Firms with international clients or hundreds of employees may benefit from using the Comprehensive Module, which adds disclosures on:

• Scope 3 emissions (e.g. business travel or client-related activities);
• Gender diversity at partner level (C9);
• Human rights and ethical supply chain (C6–C7);
• GHG reduction targets (C3);
• Climate risk assessment (C4).

This aligns you more closely with the ESRS standards used by your large corporate clients.

9. Practical Reporting Steps

Tip: Most professional service small and growing businesses (SMEs) can prepare a VSME-aligned report in under 10 pages.

10. Example Summary Table

11. Key Benefits for Law and Accounting SMEs

• Enhances credibility with CSRD-reporting clients and investors.
• Improves internal efficiency through better resource tracking.
• Builds reputation for ethical, responsible business.
• Future-proofs your firm for upcoming EU sustainability requirements.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (EU 2022/2464)
• VSME – Voluntary Sustainability Reporting Standard for SMEs (EFRAG, 2024)
• Basic Module – Core VSME framework for micro and small enterprises
• Comprehensive Module – Optional advanced reporting set for larger SMEs
• ESRS – European Sustainability Reporting Standards
• Scope 1 and 2 emissions – Direct fuel and purchased energy emissions
• Scope 3 emissions – Indirect value-chain emissions (e.g. business travel)
• Turnover – Total annual revenue
• SME – Small or medium-sized enterprise