The Sustainability Data Gap: Why Irish SMEs Need Better Information Before They Need a Sustainability Report

1 Oct

Written By Mick S

Author: Michael Staunton - October 2026

Sustainability reporting can look like the destination. For many SMEs, it shouldn't be.

The more useful question is: Do you actually know what is happening inside your business?

How much energy are you using?

Where is waste being generated?

What information are your customers asking for?

How much of your supply-chain information can you substantiate?

Do you have the information to answer a bank, customer or tender questionnaire?

These questions increasingly sit behind the wider sustainability agenda. And for many SMEs, the first challenge ultimatly isn't producing the report itself, it’s building a reliable picture of the business.

Sustainability is also a business information issue

The scale of business energy use illustrates the point. According to the CSO, Irish resident enterprises spent an estimated €16.3 billion on energy in 2024. Overall energy consumption increased by 1% compared with 2023, while electricity consumption increased by 5%.

Those are national figures, but the underlying issue exists at individual business level. An SME will most likely know it’s annual energy bill. But does it know:

which activities consume the most energy?
which sites, equipment or processes are responsible?
whether consumption is increasing or decreasing?
where efficiency improvements could have the greatest financial impact?

The same principle applies to waste, materials, transport, procurement and emissions. Having a number is of course useful. But understanding what is behind the number is more valuable.

Cost pressure is making this more relevant

This isn't just about environmental reporting. It’s also about business efficiency and longevity.

InterTradeIreland's Q2 2026 All-Island Business Monitor found that 49% of SMEs identified energy costs as their biggest business challenge. Yet only 18% reported investing in energy efficiency, while 7% were actively trying to reduce energy use through changes to products, services or operating practices.

That creates an important separation in what I believe, should be a more measured approach in countering these challenges.

knowing that costs are rising is one thing. Understanding what is driving those costs and where practical improvements can be made is another.

This is where sustainability information starts to become real business intelligence.

The question isn't simply: "Do we need a sustainability report?"

I would suggest its better to go through a sequence of questioning in order to arrive at that answer:

What information do we already have?

What information are we missing?

What does that information tell us about the business?

Where are the biggest costs, risks or opportunities?

What information might customers, lenders or other stakeholders ask us for?

This approach also fits with the latest development at European level. On 21st September this year, the EU's new Voluntary Sustainability Reporting Standard was published in the Official Journal. The standard is designed for undertakings below 1,000 employees that are not subject to mandatory sustainability reporting requirements.

Its objectives include helping businesses respond to sustainability information requests from companies in their value chain, provide information useful to banks and investors, and improve the management of sustainability issues.

Importantly, it is voluntary. So the message really for an SME isn't:

"You now need to produce a sustainability report."

It is far more on the side of:

"There is now an agreed framework if you need or want to structure your sustainability information."

And for me, making that distinction is important in framing your mindset around sustainability. The reporting helps demonstrate sustainability, not achieve it.

What does useful sustainability data look like?

It doesn't necessarily require a complicated system. In fact, I would try guard against building up to something that could ultimately become unmanageable. For an SMEs, it could simply begin with a structured baseline covering areas such as:

Energy consumption and costs
Fuel and transport
Waste
Water
Materials and procurement
Packaging, where relevant
Business travel
Employee-related information
Supplier and supply-chain information
Existing environmental or sustainability initiatives
Policies, targets and responsibilities

The objective isn't to collect data simply because it is available. It is to understand which information is useful, why it matters and what decisions it can support. Or as I like to think of it; its about collecting the right data from the right places at the right time.

From information to action

Once a business has established a baseline, it can start asking better questions.

Where are the largest sources of energy use?

Where could waste be reduced?

Are there opportunities to reduce operating costs?

Are customers increasingly asking for sustainability information?

Can the business respond consistently to ESG or supplier questionnaires?

Is there enough information to support a sustainability section in a tender?

Could better sustainability information support a conversation with a lender or investor?

These are practical business questions, and they don't necessarily require an SME to become an expert in sustainability reporting.

Start with the business, not the report

This, in my view is the key message, that unlocks the potential of sustainability in business, and the differentiator towards achieving success . If you start with; "we need to produce a sustainability report," rather than, "we need to understand our current position," you’ll invariably end up going down blind alleyways and chasing non-essential or non-existent information.

That means establishing a baseline, identifying information gaps, understanding the most material impacts and costs, and deciding where action could provide the greatest practical value.

The reporting itself can follow in due course. The important thing is that the information underneath it is useful, credible and connected to the business.

Measure → Understand → Improve → Communicate

That turns sustainability from a reporting exercise into something that can support:

Efficiency.
Resilience.
Customer relationships.
Tender opportunities.
Access to finance.
Better business decisions.

How TrailZero can help

TrailZero works with Irish SMEs to turn sustainability requirements and information gaps into practical business actions.

This can include:

ESG baseline assessments
Sustainability data collection and analysis
VSME-aligned sustainability reporting
Energy, waste and efficiency assessments
Customer and supply-chain sustainability questionnaires
ESG information for tenders
Green finance readiness
Practical sustainability improvement planning

The starting point doesn't have to be a lengthy report. It can simply be getting a clear picture of where the business is today, and deciding what to do next.

Good sustainability information should do more than fill a report. It should help a business make better decisions.