Your customer is asking for an ESG report? What Québec SMBs must provide in 2026
Large groups and banks now ask their suppliers for ESG data. Here is what they can actually require, and where to start without drowning in it.
Why these requests are landing now
If one of your customers is a large group, they are probably subject to sustainability reporting obligations. To produce their own report, they must measure emissions across their full value chain, what is called Scope 3. Concretely, they turn to their suppliers and ask for data. Banks and insurers increasingly do the same when a financing arrangement comes up for renewal. So the request is not coming from a law that targets you directly: it comes from your customers and your financial partners.
The frameworks in play in 2026
Three reference points. In Europe, the CSRD directive frames reporting for large companies, and it is the trigger that cascades requests toward suppliers. For unlisted SMBs, a voluntary standard called VSME has been designed: it defines a simplified report and, importantly, it also caps what large customers can require from their suppliers. In Canada, the Canadian Sustainability Standards Board published its CSDS 1 and 2 standards in December 2024, aligned with the international ISSB standards, which frame how sustainability information is presented across the country.
What will actually be asked of you
In most cases, the requests cover: your basic company information and governance; your energy consumption and an estimate of your greenhouse gas emissions; your practices around workforce, health and safety; and your environmental policies, even simple ones. Nobody expects a 40-person SMB to produce a multinational's report. What is expected is honest, traceable data presented in a recognised format.
Where to start without drowning in it
Our approach comes in three stages. First, scoping: which requests have you received, from whom, and what is actually required in your situation. Then collection: identifying the data you already have (energy bills, HR, purchasing) and closing the gaps. Finally, the report: an annual document aligned with a recognised framework, reusable for each new request instead of starting from scratch on every questionnaire.
At B503, these mandates are led by Cassandra Panoff, our senior ESG advisor. And because we are a studio that builds, we also developed Rylio, our ESG reporting platform, to produce reports aligned with recognised frameworks without an army of consultants.
FAQ
Is my SMB legally required to produce an ESG report?
In most cases, no. The legal obligation targets large companies. But your customers who are subject to those obligations can make your contracts conditional on receiving your data, which makes the request commercially unavoidable.
What is the difference between answering questionnaires one by one and producing a report?
Answering questionnaire by questionnaire costs time on each request and produces inconsistent answers. An annual report aligned with a recognised framework is prepared once and answers most requests.
How long does a first report take?
Depending on the size of the company and data availability, a first report is typically built in a few weeks to a few months. The initial scoping phase provides a clear timeline before work begins.