How do I measure my business’s water usage for CSRD reporting?

For most small and growing businesses (SMEs), measuring water for a VSME report or a customer’s CSRD-driven data request means copying the cubic-metre figure from your water utility bill. VSME Basic (B6) asks for total water withdrawal, with water from high-stress areas shown separately, and water consumption if your production processes significantly consume water (for example drying, irrigation, or making goods) (source 1).

Offices, shops, and service firms usually find the utility bill is all they need. Manufacturers, food producers, hotels, and water-intensive operations typically need a second step — installing a water meter or allocating landlord bills by floor space or headcount.

Showing that your business can measure and report water use — even if the volume is modest — builds credibility with clients and banks, and makes supplier questionnaires quick to answer. Record the figure once in an ESG answer bank and it answers every future request; a free VSME report tool turns those answers into a finished report at no cost.

Step 1: Understand what you need to report

Under the VSME Basic Module (B6 – Water), SMEs should disclose:

• Total water withdrawal — the amount of water you bring into your business (from mains, wells, rivers, or other sources).
• Water from high-stress areas — if you operate in regions where water scarcity is a risk, this should be shown separately.
• Water consumption — the difference between water withdrawn and water discharged back. This matters most for production processes where water is evaporated, irrigated, or embedded in products.

For offices, shops, or service businesses, water withdrawal usually equals the number on your utility bill, and consumption is often close to zero.

Step 2: Gather your data

Different business types can measure water use in different ways:

1. Utility bills — the simplest option; water use is shown in cubic metres (m³).

2. Water meters — if you have your own meter, track readings monthly or quarterly.

3. Shared or rented space — if you only see a building-level bill:

   • Divide by floor space or number of employees.
   • Estimate per-employee usage (litres per day × workforce size). See our guide on estimating water usage without a meter.

4. Production processes — if you consume water (e.g. agriculture, food, cooling), track both withdrawal and discharge to calculate consumption.

Step 3: Work out consumption (if relevant)

Formula: Water consumption = Water withdrawal – Water discharge

Example: A food manufacturer withdrew 10,000 m³ of water in 2024 and discharged 7,500 m³. The 2,500 m³ difference is reported as consumption.

For an office, nearly all water withdrawn is discharged, so consumption is negligible.

Step 4: Report in a clear format

When preparing your CSRD-style disclosure:

• Units: always use cubic metres (m³).
• Period: report annually, in line with your financial year.
• Comparisons: from year two, show last year’s figures.
• Notes: explain if you used estimates (e.g. coworking office) or direct measurements.

Example disclosure text

In 2024, our business withdrew 450 m³ of water from the public supply (based on utility bills). We operate in a low water-stress region and have no production processes that consume significant water. Therefore, our water consumption is considered negligible, with nearly all water discharged back into the sewer system.

Frequently Asked Questions

What if my business operates in multiple countries with different water availability?

Report total water withdrawal across all sites, then flag separately any water drawn in high-stress regions. The VSME guidance suggests asking local or national water authorities, or using the free WRI Aqueduct Water Risk Atlas, where a baseline water stress value above 40% indicates high water stress (source 1). VSME B6 asks for the high-stress figure separately, whatever the total volume.

How do I handle rainwater or recycled water?

For most businesses, withdrawal means water from the public supply, plus any groundwater, river or lake water, or water received from other companies. Recycled process water is not new withdrawal, so record it separately in your working notes. The VSME guidance mentions rainwater only for agriculture: agricultural businesses include rainwater they collect directly and store. Other businesses usually record harvested rainwater separately as well (source 1).

Do we need to measure water discharge too?

Only if your production processes significantly consume water. VSME Basic (B6) requires every company to report withdrawal and high-stress withdrawal, and adds water consumption (withdrawal minus discharge from production processes) for businesses such as manufacturers, food producers, and farms whose processes evaporate, irrigate, or embed water in products (source 1). For office-based businesses, consumption is near zero and does not need separate measurement.

Sources

1. EFRAG, Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), delivered 17 December 2024: Basic Module B6, paragraphs 35–36 (withdrawal, high-stress withdrawal, consumption); guidance paragraphs 142–143 (what counts as withdrawal, including rainwater for agriculture; utility bills and estimates) and 156 (water authorities, WRI Aqueduct, 40% baseline water stress).

Key Terms

• Corporate Sustainability Reporting Directive (CSRD) — An EU law requiring large companies to report on environmental and social impacts. SMEs are not directly required but may be asked for CSRD-style data.
• Voluntary Sustainability Reporting Standard for SMEs (VSME) — A simplified framework to help SMEs report on sustainability topics, including water.
• Basic Module — The minimum VSME reporting set, which includes water (B6).
• Water withdrawal — The total water taken into a business (from mains, wells, rivers, etc.).
• Water consumption — Water used up in processes (not returned to the environment).
• Water discharge — Water released back into sewers, rivers, or to other users.
• SME (Small and Medium-sized Enterprise) — Under the EU definition, a business with fewer than 250 employees and either annual turnover of no more than €50m or a balance sheet total of no more than €43m.