Per this article, on 10 November 2022, the EU parliament adopted the final Corporate Sustainability Reporting Directive (CSRD) which will require companies in the EU to publically disclose information around their environmental, social and governance matters.

This will immediately impact approximately 50,000 companies, up 5x from the current 11,700 who are reporting.

Although SMEs will have a few more years before they are required to comply with the regulations, the trickle-down from companies that are immediately impacted will happen far sooner to their SME vendors, as those companies will need sustainable vendors in order to complete their own reporting.

With the US Federal Government implementing its sustainability measures at roughly the same time, there is opportunity for SMEs who wish to take market share, to use sustainability as a competitive differentiation tool.