What Counts as “Hazardous Waste” for CSRD Reporting?

Hazardous waste is any waste that displays one or more of the hazardous properties (HP1–HP15) listed in Annex III of the Waste Framework Directive 2008/98/EC — for example flammability, acute toxicity, corrosiveness, or ecotoxicity. In practice, small and growing businesses (SMEs) usually produce hazardous waste when they handle used oils, solvents, paints, batteries, cleaning chemicals, contaminated packaging, or fluorescent tubes. If your business disposes of any of these, some of your waste is hazardous under EU law.

Under the Corporate Sustainability Reporting Directive (CSRD), companies in scope that find resource use material report waste under ESRS E5 (Resource Use and Circular Economy), which splits it into hazardous and non-hazardous. Smaller businesses are not CSRD reporters, but if a customer or bank asks for a VSME report, Basic Module disclosure B7 asks for the same hazardous / non-hazardous split.

This guide explains the legal definition, gives practical examples by sector, and shows how to record and report hazardous waste accurately without over-engineering the process.

1. The Legal Definition of Hazardous Waste

Article 3(2) of the Waste Framework Directive (2008/98/EC) defines hazardous waste as “waste which displays one or more of the hazardous properties listed in Annex III”. Annex III (as replaced by Regulation (EU) No 1357/2014) sets out 15 properties, HP1 to HP15 — for example HP3 Flammable, HP6 Acute Toxicity, HP8 Corrosive and HP14 Ecotoxic. The tests for most of them use the hazard classes of the CLP Regulation (EC) No 1272/2008.

In practice, classification runs through the European List of Waste (LoW) in Decision 2000/532/EC, as amended by Decision 2014/955/EU:

• Any waste marked with an asterisk (*) on the list is hazardous. Article 7(1) of the Directive makes the list binding for deciding which waste is hazardous.
• Some entries are hazardous only if the waste contains hazardous substances (for example “antifreeze fluids containing hazardous substances”). The same waste without them takes a different, non-asterisked code.
• A Member State may also treat waste as hazardous where it is not listed as such but displays an Annex III property (Article 7(2)).

ESRS E5 and VSME B7 both use this hazardous / non-hazardous split.

2. Common Examples of Hazardous Waste in Manufacturing and Automotive Sectors

Typical hazardous waste streams for small and growing businesses (SMEs) in manufacturing or automotive industries include the following. The codes are examples from the List of Waste; your contractor will confirm the exact code for each stream.

Small quantities still count. VSME B7 asks for total waste broken down into hazardous and non-hazardous, with no minimum quantity.

3. How to Identify Hazardous Waste in Your Business

To determine whether your waste is hazardous:

1. Check your waste codes (EWC/LoW codes) on collection invoices or manifests.
   • Hazardous waste codes end with an asterisk “*” (e.g. *13 02 05* – mineral-based engine oils).
2. Review Safety Data Sheets (SDS) for substances used in your operations — they indicate whether waste residues are hazardous.
3. Ask your waste contractor — they need the correct code to accept and transport the waste, and can help you classify it.
4. Maintain records of quantities, storage, and transfer for audit and assurance purposes.

These records support both CSRD and local environmental compliance obligations.

4. Reporting Hazardous Waste Under CSRD and VSME

In your CSRD or VSME report, hazardous waste data typically appears under:

• ESRS E5-5 (Resource outflows): total waste generated, and waste diverted from disposal and directed to disposal, each split into hazardous and non-hazardous.
• VSME B7 (Resource use, circular economy and waste management): total annual waste generated by type (non-hazardous and hazardous), and total waste diverted to recycling or reuse.

For a VSME report, that means:

• Total waste generated (tonnes/year), split into hazardous and non-hazardous
• Waste diverted to recycling or reuse
• Any reduction initiatives (e.g. waste separation or chemical substitution), if you choose to describe them

Example disclosure:

“In 2025, the company generated 2.4 tonnes of waste, of which 0.3 tonnes were classified as hazardous (used oil, solvent residues, and contaminated rags). All hazardous waste was handled by licensed contractors and 100% sent for recovery or recycling.”

This covers the VSME B7 waste data points. A company reporting under ESRS E5 needs more detail, including the breakdown by recovery and disposal operation.

5. Estimating Data if Exact Weights Are Unavailable

If your waste contractor doesn’t provide detailed weights, you may estimate quantities based on:

• Collection frequency (e.g. monthly drum collection)
• Container size and fill level
• Density of the waste — the product’s Safety Data Sheet usually gives it; use it to convert litres to kilograms

Document your assumptions clearly, as explained in how to estimate missing data for CSRD reporting. Over time, request more precise data from contractors to improve accuracy.

6. How to Reduce Hazardous Waste

Reducing hazardous waste not only lowers environmental impact but can also cut disposal costs and improve safety. Practical actions include:

• Switching to water-based paints and detergents.
• Using closed-loop oil recycling systems.
• Improving material segregation to avoid contamination of non-hazardous waste.
• Training staff on hazard identification and storage.

You can report these actions under ESRS E5-2 (Actions and resources related to resource use and circular economy) or describe them alongside VSME B7, which asks whether and how you apply circular economy principles.

Frequently Asked Questions

Does small-scale hazardous waste need to be reported?

Yes. VSME B7 asks for total hazardous waste with no minimum quantity, so even small amounts should be included if the waste is classified as hazardous. Report them in tonnes or kilograms.

What if the waste contractor doesn’t share hazardous classifications?

Request the EWC/LoW codes from your contractor. If unavailable, classify based on the waste source and Safety Data Sheets.

Can hazardous waste be recycled?

Yes. Many hazardous materials (e.g. oils, batteries, solvents) can be safely recovered or treated by specialised facilities. Always record the recovery method.

Should packaging contaminated with chemicals be included?

Yes, if it still contains residues of, or is contaminated by, hazardous substances. The List of Waste has a specific hazardous entry for it: 15 01 10*.

Sources

1. Directive 2008/98/EC (Waste Framework Directive), Article 3(2) (definition of hazardous waste) and Article 7(1)–(2) (list of waste binding for hazardous classification; a Member State may classify unlisted waste as hazardous). Text as adopted, via the legislation.gov.uk mirror of EU law.
2. Commission Regulation (EU) No 1357/2014, Annex (replacing Annex III of Directive 2008/98/EC): names and tests for HP1–HP15.
3. Commission Decision 2014/955/EU amending Decision 2000/532/EC on the list of waste, Annex: asterisked entries are hazardous; entries referring to “hazardous substances” apply only where the waste contains them; codes 13 02 05*, 14 06 03*, 08 01 11*, 16 06 01*, 15 02 02*, 16 01 07*, 15 01 10*, 16 01 14*, 16 01 13*, 20 01 21*.
4. EFRAG, Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), delivered 17 December 2024: Basic Module B7, paragraphs 37–38.
5. EFRAG Knowledge Hub, revised ESRS E5 (2026 delegated act): Disclosure Requirements E5-2 (actions) and E5-5 (resource outflows, paragraph 16).

Key Terms

• Hazardous waste – Waste that displays one or more of the hazardous properties in Annex III of the Waste Framework Directive 2008/98/EC.
• EWC/LoW code – Six-digit code from the European List of Waste (formerly the European Waste Catalogue) identifying waste type; an asterisk marks hazardous entries.
• ESRS E5 – European Sustainability Reporting Standard for resource use and circular economy.
• VSME B7 – Voluntary SME disclosure covering resource use, circular economy and waste management.
• HP properties (HP1–HP15) – EU hazard categories used to classify dangerous waste.

Conclusion

For CSRD and VSME reporting, hazardous waste includes any material classified under EU law as potentially harmful, even in small amounts. The key to compliance is clear classification, transparent reporting, and responsible handling through licensed contractors.

By tracking EWC codes, keeping disposal records, and disclosing your management methods, your company demonstrates both legal compliance and environmental responsibility.

The waste figures you gather also come back in almost every ESG questionnaire. An ESG answer bank stores them once for reuse, and a free VSME report tool turns those answers into a finished report at no cost.

To learn how to integrate waste data into your wider sustainability cycle, see our annual CSRD reporting calendar.