ESG in practice: How SMEs can turn it into an asset

What was planned?

Europe wanted to require mass reporting from companies with the CSRD directive. The bar was initially set low, so many SMEs would also be included. The Omnibus I & II amendments have adjusted this:

• Financial year 2024: only the largest public companies must report.
• Financial year 2027 (instead of 2025): large European companies, both listed and non-listed, must report. The threshold was raised to 1,000+ employees (instead of 250) and at least two of the following criteria: €25M+ balance sheet total, €50M+ turnover.
• Financial year 2026: the planned reporting obligation for small and medium-sized listed companies (SMEs) was scrapped. Instead, a voluntary standard (VSME), developed by EFRAG, offers a “light” version of reporting.

The VSME standard is much simpler and consists of three modules:

• Basic information with a limited set of key figures on environment, social, and governance;
• Extended module with extra topics for those who want to profile themselves more strongly;
• Financing module specifically tailored to what banks or investors want to know for credit and investment decisions.

This way, every SME can choose: only fill in the minimum, or opt for an extensive report to distinguish yourself sustainably.

From January 11, 2026: Banks are watching

From January 11, 2026, banks must collect ESG data from their clients. For SMEs, this means: if you want a loan, you must clearly show how sustainable your operations are.

The four major banks (BNP Paribas Fortis, Belfius, KBC, and ING) have developed the KUBE ESG platform for this purpose, based on the VSME standard (Voluntary Sustainability Reporting Standard for SMEs). KUBE ESG is therefore not a Belgian extra, but a smart translation of European agreements for SMEs. Practically: it is a central database where SMEs can upload their ESG information.

Some advantages:

• Free: using KUBE ESG costs nothing.
• Uniform: all banks use the same questionnaire, based on the VSME standard.
• Ceiling: SMEs only need to share the requested data. Banks or other players in the value chain cannot demand extra information outside this framework.
• Transparent: the information is visible to those who are legally entitled to access it, providing more clarity in the market.

ESG doesn’t have to be a burden

ESG may seem like a new obligation, but it is above all an opportunity for your business:

• Stronger position in the chain: large clients increasingly ask about sustainability.
• Advantage in talent and image: younger generations consciously choose sustainable companies.
• Knowledge gap: more than 50% of Belgian SMEs are still insufficiently familiar with the rules.
• Limited effort: thanks to the VSME standard and KUBE ESG, the administrative work remains manageable. Those who start now will be ahead later.

How PKF BOFIDI can help

At PKF Bofidi, we see ESG not as a mandatory exercise, but as an opportunity. We support SMEs with:

• Strategic insight: which ESG data are truly relevant for your company and sector?
• Practical approach: efficient processes to collect the right information.
• Reporting: correctly completing the VSME and uploading via KUBE ESG.
• Forward-looking advice: using ESG to strengthen your position with clients, banks, and employees.

Conclusion

There will be no heavy European reporting obligation for SMEs. But from January 11, 2026, ESG will become a reality through banks and KUBE ESG. Fortunately, it is not just an obligation, but also an opportunity. Those who start working on it today will be stronger tomorrow: doors will open with clients, banks, and talent. At PKF BOFIDI, we are happy to help you get started smartly today!

Do you have questions or need guidance with ESG? Contact our experts, we are happy to help you further.

This article was written by Lotte Grossen and Jean-Louis de Hasque.