Isabel and Karomia partner to simplify ESG reporting

Empowering smaller companies to meet growing ESG expectations 

The partnership will allow SMEs to perform proportionate ESG reporting according to the VSME standard(*). Even though companies may not be legally required to report on ESG (e.g. as could be the case with CSRD), there’s a growing demand from banks, investors, and supply chain partners for structured ESG data. For other SMEs, ESG is deeply embedded in their corporate identity, making it only natural for them to want to share and highlight their ESG profile.

A future-proof ESG reporting solution built on a trusted platform 

By embedding Karomia’s ESG engine into the Kube platform, Isabel offers SMEs a unique, user-friendly solution to register and share their ESG data with key stakeholders, particularly within the financial sector.

The Kube platform is already trusted and used by the 4 major Belgian banks for the exchange of KYC data in the context of AML (Anti-Money Laundering). Today Kube already holds the verified KYC data of more than 300.000 corporates. The scope will now be extended with ESG data which makes Kube a unique asset for corporates facilitating the secure exchange of their data in today’s digital economy.

"Isabel is known for its reliable solutions that support companies in their day-to-day financial operations and interactions within the digital economy. The recently launched Kube platform for secure data exchange is a clear example of this. ESG represents a new and important pillar, with significant challenges in terms of data management and sharing. Thanks to our collaboration with Karomia, we are further expanding Kube with future-oriented solutions for ESG reporting,” says Kris De Ryck, CEO of Isabel. 

“At Karomia, we believe that ESG reporting should be straightforward, reliable, and within reach for every SME. With Kube-ESG, we combine Isabel’s trusted capabilities in secure data exchange with our expertise in ESG reporting and our proven, user-friendly platform. Together, we are making it easier for businesses to collect, manage, and share their ESG data and empower them to build a more sustainable future,” says Luc Machiels, CEO of Karomia. 

The Kube ESG platform will be launched in autumn later this year. Isabel and Karomia will closely monitor regulatory developments, including the evolution of the Omnibus Directive, to ensure that the Kube platform stays tuned with the dynamic ESG reporting requirements.

(*) Under current legislation, companies that fall under the VSME standard (Voluntary Standard for non-listed micro-, small- and medium-sized enterprises) are those that do not exceed two of the following three thresholds: €25 million in total assets, €50 million in net turnover, or an average of 250 employees over the financial year. While these companies fall outside the mandatory scope of the Corporate Sustainability Reporting Directive (CSRD), the ongoing discussions around the Omnibus proposal could further raise the CSRD threshold to cover only companies with over 1000 employees, increasing the relevance of the VSME as a voluntary ESG reporting framework for SMEs facing growing market-driven sustainability disclosure demands. 

About ESG 

The Voluntary Standard for non-listed micro-, small-, and medium-sized enterprises (VSME) has emerged as a key recommendation for SMEs seeking to navigate growing demands for sustainability transparency. While SMEs are not (yet) subject to mandatory ESG reporting under the Corporate Sustainability Reporting Directive (CSRD), especially with the potential increase of the threshold to 1000 employees under the Omnibus proposal, they increasingly face pressure from banks, business partners, and customers to disclose ESG information. This pressure is amplified by upcoming banking regulations — notably the Capital Requirements Regulation (CRR III) and Capital Requirements Directive (CRD VI) — which will require banks from 2026 onwards to assess ESG risks across their loan portfolios. To comply, financial institutions must collect reliable and consistent ESG data from their clients, including SMEs. In practice, however, providing such data is a complex challenge for many SMEs, who often lack the resources and guidance to report effectively. The VSME standard offers a simplified, voluntary framework to help SMEs meet these expectations, ensuring they remain competitive, finance-ready, and aligned with evolving sustainability requirements without the heavy burden of full CSRD compliance.