Let’s be honest—ESG reporting can feel overwhelming, especially if you run a small or medium-sized business. It sounds complicated, expensive, and like something only big corporations can handle. But here’s the truth: you don’t need expensive software to start. ESG reporting without expensive software is not just possible—it’s practical, doable, and can actually give your business an edge.
Summary: In this article, you will learn:
- Why small businesses can skip expensive ESG software.
- How to make ESG reporting simple and meet supply chain expectations.
- Easy, actionable steps to create ESG reports using basic tools.
What is ESG Anyway?
Environmental, Social, and Governance (ESG) reporting is all about showing your company’s commitment to doing good—for the planet, people, and your community.
These ESG metrics help others see how your company is performing in key areas. Whether it’s reducing waste, taking care of employees, or building trust with customers, ESG reporting shines a light on it.
Getting your ESG reporting right means you understand your ESG data, the reporting process, and what ESG reporting requirements might apply. Doing this well can also help your business run smoother and stand out from the crowd.
Why the Supply Chain is Pushing ESG on SMEs
Big companies are now required to prove they’re being transparent. If you’re part of their supply chain, they’ll expect you to prove your sustainability too.
If you can’t, you risk losing them as clients. With the world changing fast, especially in international markets, you might already be feeling this pressure.
Starting your ESG reporting now will help keep your place in their supply chain and even attract new business. Supply chain sustainability is becoming non-negotiable, and sustainability reporting helps your company stay relevant.
ESG Software: Built for Giants, Not SMEs
It’s Expensive and Complicated
Most ESG reporting software is designed for massive corporations with entire teams and big budgets. It’s not built for small businesses.
It Doesn’t Fit Your Business
These tools often follow rigid formats. They don’t adjust to the unique ESG reporting needs of smaller businesses.
It’s Too Technical
A lot of ESG platforms need deep tech knowledge, complex ESG data collection, and system integration. If you don’t have an IT team, it’s a tough climb.
For small and medium-sized businesses, ESG reporting without expensive software often makes more sense. Manual reporting or low-cost ESG reporting solutions can offer the flexibility you need.
Collecting ESG Data Without Headaches
Keep it Simple
You can collect ESG data manually—you just need to track the right specific data points like carbon emissions, employee details, and supply chain sustainability data.
Focus on Accuracy
Data quality is critical. Even without fancy tools, good records make your ESG reports trustworthy.
Use Affordable Tools
Spreadsheets and simple templates can get the job done. You don’t need pricey ESG reporting platforms to keep your ESG data organized.
Streamlining ESG reporting can be achieved with structured data collection processes and manual reporting tools.
Making Sense of ESG Data
Spot the Risks and Opportunities
When you process your ESG data, you’ll see patterns. These help you make smart decisions, improve sustainability performance, and manage risks.
Simple Data Can Show a Lot
Even basic spreadsheets can show trends that support sustainability management and risk management.
Follow Trusted Guides
If you want help, look at frameworks like the International Sustainability Standards Board (ISSB) for practical reporting solutions.
Quantitative data, even in simple forms, provides valuable actionable insights that guide your sustainability goals.
Building an ESG Report that Works
A good ESG report pulls together all the essentials: carbon emissions, employee stats, supply chain details, and all your ESG data in one place.
Your ESG reporting practices should ensure accuracy, completeness, and clarity.
Frameworks like the Global Reporting Initiative (GRI) and the IFRS Sustainability Disclosure Standards can help you build comprehensive reporting aligned with international standards.
Counting Carbon Without the Stress
Carbon accounting is a key part of ESG reporting. Knowing your carbon footprint helps you spot where you can improve.
You don’t need fancy ESG reporting software to measure your carbon impact. Following the Greenhouse Gas Protocol is a smart, widely accepted way to track emissions data.
Basic tracking tools, spreadsheets, and manual reporting processes can help you manage carbon emissions effectively.
Bring ESG Into Daily Operations
Making ESG part of your everyday business processes helps you hit your sustainability goals.
Think about adding ESG factors like climate-related financial disclosures into your normal enterprise risk management.
Simple ESG initiatives, like diversity programs, can improve your company’s ESG performance and build long-term value.
When You Have Multiple Locations
If your business has several sites, you’ll need to consolidate ESG data across all of them.
Manual reporting processes and structured spreadsheets can simplify consolidated reporting without expensive ESG software.
Using reporting tools like charts and graphs makes your ESG reporting easy for stakeholders to understand.
Using Tech to Make ESG Reporting Easier
Technology can make a big difference. Free and low-cost cloud tools, spreadsheets, and manual reporting options are perfect for ESG reporting without expensive software.
The best ESG software can provide robust analytics, emissions management, and data aggregation, but SMEs can achieve streamlined reporting with affordable solutions.
Start by choosing ESG reporting solutions that match your current size and reporting process.
ESG Reporting Can Give You a Business Boost
Good ESG reporting shows that your company values sustainability and transparency. This can help you attract new clients and investors who care about ESG disclosures.
Sustainability reporting and clear climate-related financial disclosures can reveal risks and new opportunities.
When you consistently track sustainability performance, you support long-term success and build competitive edge.
Getting Your Reports Audit-Ready
Audit-ready reports need to be complete, accurate, and easy to verify. Ensuring audit-ready reports is essential for transparency.
Manual reporting can still produce audit-ready reports when supported by solid documentation and structured ESG reporting solutions.
Audit-ready reports build stakeholder trust and show that your ESG efforts are serious and credible.
Understanding the Rules
Regulatory requirements around ESG reporting are growing. The EU’s Sustainable Finance Disclosure Regulation (SFDR) and the Task Force on Climate-related Financial Disclosures (TCFD) are examples.
Staying current with evolving regulatory requirements is key to ESG compliance.
Affordable ESG reporting tools and manual reporting can help small businesses meet these ESG reporting requirements.
How to Connect ESG Reporting to Your Existing Systems
You can integrate ESG reporting with your existing systems like ERP, CRM, and HR software.
Using APIs and simple reporting solutions can help streamline ESG reporting processes and simplify compliance.
System integration reduces ESG reporting tasks and helps manage sustainability data efficiently.
Growing Your ESG Reporting Over Time
Start small. ESG reporting without expensive software works when you scale at your own pace.
As your company grows, scalable ESG reporting solutions can support your evolving ESG data collection and reporting platform needs.
Make sure your ESG reporting software, if you choose to adopt one later, can handle larger data sets and protect sensitive data.
ESG Reporting for Small Businesses
ESG reporting isn’t just for big corporations. Small businesses can lead in sustainability reporting by showing commitment to responsible practices.
Affordable ESG reporting solutions like manual templates, spreadsheets, and structured reporting tools can help SMEs get started.
Tracking sustainability data supports risk management, reveals actionable insights, and helps you build trust through transparent ESG disclosures.
Using ESG Reporting to Inform Policies and Communication Strategies
ESG reporting isn’t just about collecting data—it can shape your entire business strategy. When you track ESG data regularly, you get a clear picture of what matters most to your company and your stakeholders.
Informing Company Policies
Your ESG reporting can directly inform your internal policies. For example, if your ESG data shows gaps in diversity, you can develop policies to improve hiring practices. If your carbon emissions are higher than expected, you can set clear, achievable reduction targets.
By using ESG data to guide policy decisions, you create a framework that aligns your operations with sustainability goals and regulatory requirements. These policies can cover employee well-being, supply chain ethics, community engagement, and environmental practices, ensuring that your ESG efforts become part of your company culture.
Enhancing Communication Strategies
Your ESG reporting can also power your communication strategies. Sharing your ESG progress in newsletters, on your website, or through social media builds transparency and trust with customers, partners, and investors.
When you talk about your ESG commitments and results, you show that you’re taking real action. Clear communication about your sustainability goals, ESG initiatives, and measurable results can differentiate your brand and attract stakeholders who care about responsible business.
Incorporating ESG reporting into your public messaging also helps you respond to supply chain inquiries, customer questions, and investor requirements with confidence and credibility.
When your ESG reporting, company policies, and communications align, you create a powerful, unified message that drives growth and long-term value.
Using ESG Reporting to Engage and Inform Stakeholders
One of the most valuable outcomes of ESG reporting is its ability to engage stakeholders with meaningful, transparent information. Your ESG data can help you:
- Build Investor Confidence: Investors increasingly prioritize ESG performance. Sharing ESG metrics and sustainability goals helps investors understand your commitment to responsible growth and risk management.
- Strengthen Customer Loyalty: Customers prefer brands that demonstrate real environmental and social responsibility. By using ESG reporting in your communications, you show them that you share their values.
- Support Supplier Relationships: Many large companies now require ESG disclosures from their suppliers. By proactively sharing ESG reports, you can secure and strengthen your position in supply chains.
- Enhance Employee Engagement: Employees are more likely to feel proud and connected to companies that prioritize ESG. Sharing your sustainability progress helps build internal support and loyalty.
- Improve Community and Regulatory Relations: Sharing ESG data with local communities and regulators can build goodwill, showing that your company is working to make a positive impact.
When you use ESG reporting to keep stakeholders informed, you build stronger relationships based on transparency, accountability, and shared goals. Regularly updating stakeholders on your ESG efforts through reports, meetings, or digital channels can create a cycle of trust and ongoing engagement.
Conclusion
ESG reporting is part of running a responsible, future-ready business. Small businesses can achieve effective ESG reporting without expensive software by focusing on data quality, actionable insights, and clear reporting processes.
Whether you use manual reporting or low-cost ESG reporting software, the key is consistency, transparency, and a commitment to sustainability performance.
ESG reporting helps you attract the right customers, build long-term relationships, and create a competitive edge in your market.
FAQ
Can small businesses really do ESG reporting without software?
Absolutely! ESG reporting without expensive software is achievable using spreadsheets, manual processes, and free reporting tools.
Why should small businesses care about ESG?
Small businesses that prioritize ESG reporting can win new clients, meet ESG reporting requirements, and showcase their sustainability efforts.
Can manual ESG reporting still pass an audit?
Yes. Manual ESG reporting can be audit-ready if records are complete, accurate, and follow recognized ESG reporting practices.
What are some free or low-cost ESG reporting solutions?
Free cloud-based templates, spreadsheets, and frameworks like GRI, SASB and ISSB offer practical reporting solutions without large costs.
How does ESG reporting help with risk management?
ESG reporting helps identify risks, supports sustainability management, and provides actionable insights that guide long-term strategy.
What specific ESG data points should SMEs track?
SMEs should focus on key ESG data like carbon emissions, employee diversity, energy usage, supply chain sustainability, and community impact.
How can ESG reporting improve supply chain relationships?
Providing reliable ESG reports can strengthen your role in the supply chain, as larger companies increasingly require their partners to demonstrate sustainability practices.
Is ESG reporting time-consuming for small businesses?
It can be manageable with the right structure. Using templates, consistent data collection, and streamlined reporting processes makes it efficient.
What happens if SMEs ignore ESG reporting?
Ignoring ESG reporting can result in lost contracts, missed business opportunities, and falling behind in regulatory and industry expectations.
Can ESG reporting grow with my business?
Yes. ESG reporting solutions can start simple and scale as your company expands. You can adopt more sophisticated ESG software as needed.
About ESG The Report
ESG The Report is your trusted source for straightforward, up-to-date insights on environmental, social, and governance reporting. We focus on sustainable strategies, ethical supply chains, ESG reporting solutions, and impact assessments that help businesses and investors make better decisions. Through expert commentary and practical research, we show how ESG practices lead to real-world results for companies and communities. Transparency, accountability, and innovation drive everything we do. Our easy-to-read articles cover climate change, ESG reporting without expensive software, responsible resource use, and diversity initiatives that matter. We show you how ESG can turn challenges into opportunities for long-term success. Stay connected with us for clear, actionable insights and join a growing community that values responsible business.
Dean Emerick is a curator on sustainability issues with ESG The Report, an online resource for SMEs and Investment professionals focusing on ESG principles. Their primary goal is to help middle-market companies automate Impact Reporting with ESG Software. Leveraging the power of AI, machine learning, and AWS to transition to a sustainable business model. Serving clients in the United States, Canada, UK, Europe, and the global community. If you want to get started, don’t forget to Get the Checklist! ✅