The European Parliament has just announced changes to the Corporate Sustainability Due Diligence Directive (CSDDD), raising the thresholds so that only companies with over 5,000 employees and €1.5 billion in turnover will be directly covered.
While this means many SMEs are formally exempt, the move is increasing indirect pressure on smaller businesses to address their environmental impact. Inefficient IT infrastructure, overprovisioned cloud services, underused servers and outdated hardware is quietly inflating energy use and operational costs, making sustainability a growing commercial and regulatory concern.
Analysts estimate that inefficient digital estates can increase IT energy consumption by up to 20% in a typical SME, directly affecting both carbon footprints and the bottom line. Beyond energy costs, inefficient IT also contributes to higher maintenance requirements, more frequent hardware replacement and reduced agility in adopting modern cloud-based solutions. SMEs that proactively review and optimise their IT operations can not only reduce emissions but also lower operating costs, improve efficiency and strengthen their position with clients and partners increasingly focused on sustainability.
Mark Appleton, Group Lead Vendor Ecosystem Development at ALSO Group, said: “Sustainability in IT is no longer just a corporate talking point. Even when SMEs are not legally obliged to report, the expectations of partners, customers and investors are rising. Inefficient infrastructure is not only a climate issue, but also a financial issue. Businesses that ignore these pressures risk higher costs and reduced competitiveness.”
