ESG Requirements from Retailers: How Suppliers Should Respond

Whether you’re a small consumer goods brand, a private-label supplier, or a subsidiary selling into large retail groups, ESG questionnaires from retailers are now part of doing business across Europe. Some retailers are reporting directly under CSRD; others are preparing ahead—but nearly all are asking suppliers for structured sustainability data.

For suppliers, this can feel overwhelming. The questions are detailed, the terminology is unfamiliar, and requests often arrive with tight deadlines. Yet most questionnaires draw on the same core information and are designed to feed into retailers’ CSRD reporting obligations.

This article breaks down real-world ESG questionnaire sections used by major retailers (shown here in anonymised form) and explains, line by line, how small and growing businesses can respond confidently—without consultants or enterprise systems.

Why Retailers Are Sending ESG Questionnaires

Under CSRD, retailers must disclose not only their own operations but also material impacts, risks, and dependencies across their value chains. This includes labour conditions, sourcing practices, and supplier oversight.

As a result, retailers increasingly rely on suppliers to provide data that supports their CSRD compliance. Standardised questionnaires help them:

• Collect comparable data at scale
• Reduce audit costs
• Demonstrate due diligence on human rights and supply chains

For suppliers, these questionnaires are no longer optional. Responses influence onboarding decisions, contract renewals, and preferred supplier status.

Common Structure of Retailer ESG Questionnaires

While formats differ, most retailer questionnaires follow a similar structure. Understanding this makes them much easier to complete.

Section 1: Company and Site Information

Example questions:

• List all production and sourcing locations.
• Do you use subcontractors? If yes, where?
• How many workers are employed at each site?

How to respond: Retailers are mapping your position in their supply chain. A simple site register with addresses, activities, and approximate workforce size is usually sufficient. This aligns closely with value chain mapping approaches described in value chain mapping for CSRD SMEs.

Avoid over-detailing. Accuracy and completeness matter more than precision.

Section 2: Supply Chain Traceability

Example questions:

• Can you trace key raw materials to country of origin?
• Do you maintain supplier lists beyond Tier 1?
• How do you assess supplier risks?

How to respond: Most retailers accept partial traceability, especially from SMEs. Focus on:

• Documented Tier 1 suppliers
• Material invoices and declarations
• Clear explanations of current limitations

This is primarily a data collection exercise, not a perfection test. Clear processes matter more than full visibility today.

Section 3: Labour Conditions and Human Rights

Example questions:

• Do you have policies on child labour and forced labour?
• How do you monitor working hours and wages?
• Have any labour incidents been identified in the last year?

How to respond: Retailers are under pressure to report on workers in the value chain, even when suppliers are small. Written policies, basic checks, and escalation processes are usually enough.

If you have no incidents to report, state this clearly and explain how you would identify issues if they arose. This demonstrates governance, not risk.

Section 4: Factory Audits and Certifications

Example questions:

• Have any sites been audited in the last three years?
• Which standards were used (e.g. SMETA, BSCI, SA8000)?
• How are corrective actions tracked?

How to respond: You do not need to hold multiple certifications. Retailers mainly want visibility:

• Dates and scope of audits
• Summary of findings
• Confirmation that corrective actions were addressed

If audits are limited, explain how you manage oversight through contracts, visits, or long-term supplier relationships.

Section 5: Environmental and Operational Data

Example questions:

• Do you track energy or water use at production sites?
• Are environmental impacts assessed at supplier level?

How to respond: Even when questionnaires include environmental questions, retailers often accept qualitative responses from SMEs. Link your answers to existing utility data or supplier confirmations and explain improvement plans where relevant.

Preparing Documentation That Works Across Retailers

One of the biggest challenges for suppliers is repetition—answering similar questions in different formats. A small amount of preparation reduces effort significantly.

Build a Reusable ESG Information Pack

A basic internal pack can include:

• Supplier and site register
• Key policies (labour, ethics, sourcing)
• Audit summaries
• Traceability explanations

This supports efficient stakeholder engagement and shortens response times.

Align With VSME Where Possible

Although voluntary, the VSME standard mirrors many retailer data needs. Structuring information this way helps you respond consistently and prepares you for future reporting requests.

What Retailers Actually Look For

Retailers are rarely looking for “perfect” ESG performance from small suppliers. They are assessing:

• Transparency and honesty
• Basic systems and accountability
• Willingness to improve over time

Clear explanations, consistent data, and timely responses often matter more than advanced metrics.

Frequently Asked Questions

Are ESG questionnaires mandatory for small suppliers?

They are not legal requirements for SMEs, but they are often contractual requirements. Many retailers will not onboard or renew suppliers without completed questionnaires aligned to their CSRD obligations.

How accurate does our data need to be?

Retailers generally accept reasonable estimates from SMEs, especially for workforce and traceability data. What matters is consistency and clarity, not audit-level precision.

Do we need external audits to pass retailer questionnaires?

Usually not. Audits are helpful but not mandatory for many suppliers. Clear policies, internal checks, and documented processes are often sufficient.

How can we reduce the time spent on questionnaires?

The most effective approach is creating a reusable ESG information pack and maintaining it annually. This aligns well with structured data collection and reduces repeated work.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive
• ESG Questionnaire – Structured data request used by retailers to assess suppliers
• VSME – Voluntary Sustainability Reporting Standard for SMEs
• Value Chain – All upstream and downstream business relationships
• Due Diligence – Processes to identify and manage sustainability risks

Conclusion and Next Steps

Retailer ESG questionnaires are now a permanent feature of supplier relationships in Europe. For small and growing consumer goods businesses, the goal is not to meet enterprise-level standards overnight, but to respond clearly, consistently, and credibly.

By understanding how questionnaires are structured and preparing a small set of reusable documentation, suppliers can protect commercial relationships, reduce administrative burden, and position themselves as reliable partners in a CSRD-driven retail landscape. With a clear structure and consistent effort, these requests become manageable—and even strategic.