How do I measure my business’s water usage for CSRD reporting?
The Corporate Sustainability Reporting Directive (CSRD) requires large companies to disclose environmental impacts, including water use. Even though most small and medium-sized enterprises (SMEs) are not directly in scope, banks and large customers may expect you to share CSRD-style data. The Voluntary Sustainability Reporting Standard for SMEs (VSME) provides a simple way to do this.
Why it matters: Even if your water use is modest, showing that you can measure and report it demonstrates professionalism, readiness, and responsibility. It helps you respond confidently to client or bank requests.
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- Water consumption — the difference between water withdrawn and water discharged back.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:
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Utility bills — the simplest option; water use is shown in cubic metres (m³).
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Water meters — if you have your own meter, track readings monthly or quarterly.
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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.
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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For an office, nearly all water withdrawn is discharged, so consumption is negligible.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.
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) — A business with fewer than 250 employees, turnover under €50m, or balance sheet under €25m.