HomeFAQ

Questions SME suppliers ask

A recurring theme runs through the regulations below: even if your business is not directly in scope, the requirement can still reach you indirectly, through a larger customer that is. Last updated July 2026.

My customer sent me a sustainability questionnaire. What do I do?

First, do not improvise a one-off answer that you cannot repeat next year. Map what the questionnaire is really asking (often EcoVadis criteria or carbon data), check what information you already hold, and identify the gaps. A structured sustainability baseline turns each future request into a quick update rather than a fire drill. TCB helps suppliers set this foundation so that answering customers becomes routine.

What is CSRD and does it apply to my SME?

The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation requiring companies above certain thresholds to publish annual sustainability reports aligned with the European Sustainability Reporting Standards (ESRS). It applies directly only to large companies. The key point: even if your SME is not in scope itself, a large customer that is will pass the requirement down to you as a request for sustainability data. The indirect trigger reaches you through the customer. A separate voluntary standard, VSME, exists for SMEs that want to report proportionately.

What is the EU Empowering Consumers Directive (ECGT) and how does it affect suppliers?

The Empowering Consumers for the Green Transition Directive (ECGT) is an EU law that requires companies to substantiate the environmental claims they make to consumers, and bans vague or unverified "green" labels. Your business does not need to make any consumer claims itself to be affected. The trigger is indirect: the large customer that makes the claims needs real data about the products and materials in its supply chain, so it asks you for carbon footprints and other ESG data. A supplier who can answer protects the relationship; one who cannot becomes a weak link.

What is PPWR and does it apply to my packaging?

The EU Packaging and Packaging Waste Regulation (PPWR) sets mandatory requirements for packaging recyclability, recycled content and packaging minimisation, with obligations phasing in from August 2026. It applies to companies that manufacture, import or place packaged goods on the EU market. Here too the indirect trigger matters: even where the formal obligation sits with a larger customer, they will pass packaging-data and compliance requests down to their suppliers. TCB can support this where it is relevant to your business.

What is EcoVadis and why do my customers ask for it?

EcoVadis is a widely used third-party platform that scores companies on environmental, social, ethical and supply-chain criteria. Many large industrial operators require their suppliers to complete an EcoVadis assessment as a condition of tendering or contract renewal. Preparing the right evidence in advance, filtered to what is material for your business, makes a stronger score achievable with less scramble.

What is a Product Carbon Footprint (PCF)?

Carbon emissions can be measured at company level or at product level. For your customer to complete its own corporate carbon accounting, it needs to know the footprint of the specific product or service you sell it. A Product Carbon Footprint (PCF) is the methodology that calculates this, so the figure can be passed up to your customer. Third-party verified PCFs are strong data points that can also be used to substantiate sustainability claims.

What does a sustainability baseline include?

A sustainability baseline identifies which Environmental, Social and Governance topics are relevant to your business, based on its activities, sector and stakeholder relationships. It typically includes a materiality assessment (a structured way of ranking which sustainability topics matter most), a review of current practice against relevant frameworks such as VSME, and a scan of the sustainability-linked legislation that applies to your operations.

What's involved in preparing a first VSME sustainability report?

Preparing a VSME report is not only about producing the document. The real value is in improving the underlying ESG performance, so the finished report presents your company as a forerunner in sustainability rather than a box-ticker. How long it takes depends on where you are starting from; completing a structured baseline first makes the path shorter and the end result stronger.

Do I need a consultant if I'm a small supplier?

An independent consultant can work almost like a member of your team, integrating with your people and joining the relevant meetings, with two differences that suit a smaller business. There is no full-time contract: often a few hours a week is all you need. And it carries fewer legal and administrative constraints than taking on an employee. You get senior sustainability capability when you need it, without the overhead of a permanent hire.

Question not covered here?

Send it by email or bring it to a 15-minute call. Both work.

Book a 15-minute call

luciano@thecircularbulb.eu