A Sustainability Reporting (and Management) Framework for SMEs in the Furniture Industry: Key Thematic Aspects and Indicators

After reviewing the most widely accepted SR (SR) standards, this chapter proposes a tailored SR framework for small- and medium-sized enterprises (SMEs) in the furniture industry. Grounded in the triple bottom line (TBL) approach and supported by both industry-agnostic and industry-specific literature, the framework was developed through a two-stage engagement process conducted in the Basque Country (Spain). This included a focus group with sustainability experts and in-depth interviews with SME managers. A key element of the framework is the incorporation of materiality analysis as a mechanism for translating stakeholder concerns into targeted SR practices. Rather than relying on resource-intensive or overly technical methodologies, the framework operationalizes materiality through structured, stakeholder-informed tools—such as guided drop-down menus—that help SMEs identify, assess, and report on the most relevant sustainability issues within their sector. The resulting framework comprises 45 indicators grouped into four overarching thematic dimensions: economic, environmental, social, and governance. Findings highlight the relevance of the economic and governance dimensions for SME-level sustainability implementation. Although these firms are not subject to the same obligations as large corporations, the use of aggregate indicators enables comparability across firms and sectors, allowing SMEs to benchmark their performance effectively. This study offers practical insights for policymakers, private standard-setters, and SME managers—particularly in the European Union—where there is growing institutional pressure to improve sustainability transparency among smaller enterprises.