Renewable Energy SMEs: How To Report Your Operations

The European renewable energy sector is powered by thousands of small and medium-sized enterprises (SMEs) — solar installers, wind service companies, energy cooperatives, and microgrid operators. These firms are key to Europe’s green transition, yet many now face new demands from clients, financiers, and regulators to report on sustainability performance.

If you operate in renewables but are not directly in scope of the Corporate Sustainability Reporting Directive (CSRD), this guide will help you understand how to report your operations using the Voluntary Sustainability Reporting Standard for SMEs (VSME). For complementary guidance, see the CSRD guide for small energy suppliers and how to report electricity use.

1. Why Renewable Energy SMEs Should Report

Even if your company is below CSRD thresholds (fewer than 250 employees, under €40 million turnover, or under €20 million balance sheet total), you are still part of the value chain of CSRD-regulated energy providers.

By reporting voluntarily, you:

• Strengthen relationships with large corporate or municipal partners
• Build credibility with banks and investors
• Demonstrate transparency to customers and communities
• Prepare for future regulatory inclusion

The VSME Standard (EFRAG, 2024) allows SMEs to report in a simplified, affordable, and standardised way consistent with CSRD principles.

2. The Framework: Using the VSME Standard

The VSME Standard is structured in two modules:

Start with the Basic Module, which already satisfies most client and lender expectations for sustainability data.

3. Core Reporting Topics for Renewable Energy SMEs

The table below summarises the most relevant VSME Basic Module disclosures for renewable energy firms:

4. Step-by-Step: How To Report Your Operations

Step 1 – Identify What You Do

Describe your business model and main activities clearly:

“GreenWatt Cooperative designs, installs, and maintains community solar farms in Northern Spain, supplying renewable power to local households.”

This forms your “Business Model and Operations” section under B1–B2.

Step 2 – Measure Your Energy and Emissions (B3)

Even renewable operations consume energy — in offices, workshops, or vehicle fleets.

Collect data on:

• Electricity purchased (for offices, workshops)
• Diesel or petrol for service vans or maintenance vehicles
• Backup generators or construction machinery
• Renewable energy you produce and self-consume (solar, wind, biogas)

Convert all data to MWh and estimate Scope 1 and 2 emissions:

Example:

• Electricity used: 40,000 kWh (40 MWh × 0.25) = 10 tCO₂
• Diesel: 2,000 L (20 MWh × 2.68) = 5.4 tCO₂ Total = 15.4 tCO₂e

You can now calculate your GHG intensity (tCO₂e per €1,000 turnover) as required by VSME paragraph 31.

Step 3 – Disclose Environmental Impacts (B4–B7)

Renewable SMEs should still account for site impacts and material use:

If you generate or handle waste (batteries, panels, construction debris), disclose:

• Total waste generated (hazardous / non-hazardous)
• Share recycled or reused
• Partner waste collectors or recyclers

Example: “In 2024, 95% of solar panel packaging was recycled; all batteries were returned under the WEEE scheme.”

Step 4 – Workforce and Safety (B9–B10)

Renewable energy work is often high-risk — electrical, mechanical, or working at height.

Disclose:

• Total employees and contractors
• Health and safety incidents (recordable injuries, fatalities)
• Training hours per employee
• Share of workforce under collective agreements
• Gender pay gap (optional if under 150 staff)

Example:

“EcoWind Ltd employs 28 people and 7 contractors. No recordable incidents occurred in 2024. Staff received an average of 12 hours of technical and safety training.”

Step 5 – Governance and Ethics (B11)

This includes:

• Anti-bribery policies and certifications
• Environmental compliance (e.g., ISO 14001)
• Statement of zero fines or legal proceedings
• Transparency on ownership and leadership structure

Example: “GreenWatt Cooperative has no convictions or fines for environmental or anti-corruption offences and operates under a certified ISO 14001 management system.”

5. Example: Simplified VSME Sustainability Statement

Company: SunGrid Energy S.L. Sector: Solar and microgrid installation Employees: 42 Turnover: €5.6 million Module: Basic (B1–B11)

Narrative summary:

“SunGrid Energy commits to carbon neutrality by 2028. In 2024, the company reduced diesel use by 15% and trained all installation teams on new safety standards.”

6. Linking to CSRD Requirements

Under Directive (EU) 2022/2464, large energy companies must report sustainability data across their supply and value chains. Renewable SMEs supplying them can:

• Use VSME disclosures as their standard reporting format
• Enable clients to integrate your data into their ESRS E1 (Climate) and E5 (Circular Economy) sections
• Demonstrate compliance readiness for future regulatory expansion

7. Quick Wins for Renewable Energy SMEs

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (EU 2022/2464).
• VSME – Voluntary Sustainability Reporting Standard for SMEs (EFRAG 2024).
• Basic Module – Entry-level sustainability disclosures for SMEs.
• Comprehensive Module – Advanced disclosures for larger or supplier-linked SMEs.
• Scope 1 & 2 Emissions – Direct and energy-related greenhouse gas emissions.
• Circular Economy – Maximising reuse and recycling of materials.
• ESRS – European Sustainability Reporting Standards under CSRD.
• GHG Intensity – Emissions per € of turnover or output.