Sustainability reporting has evolved from a voluntary practice into a regulatory obligation, particularly within the European Union, where the Corporate Sustainability Reporting Directive (CSRD) mandates extensive Environmental, Social, and Governance (ESG) disclosures. Among its most demanding components is greenhouse gas (GHG) emissions disclosure, which poses significant challenges, particularly for small and medium-sized enterprises (SMEs) lacking the technical infrastructure, expertise, and resources to accurately collect, measure, and report the required data. Despite the urgency of CSRD compliance, there is limited academic research on how SMEs adopt or struggle with digitally enabled solutions to meet their emissions reporting requirements. To address this gap, this study investigates key digital and workflow-related challenges SMEs face in collecting and reporting emissions data in preparation for compliance. Adopting a multi-method approach, the study begins with a document analysis of white papers, policy reports, and CSRD standards to establish normative expectations for emissions reporting. Concurrently, a qualitative case study involving semi-structured interviews with professionals from SMEs takes place to identify recurring obstacles and practices. Finally, through a gap analysis between regulatory expectations and actual SME practices, the study identifies key barriers to CSRD compliance and offers recommendations for digital reporting system features that facilitate verifiable, consistent, and machine-readable emissions reporting. In doing so, the study contributes to an emergent ESG literature by offering insights into SME emissions reporting practices. It is also intended to inform software vendors aiming to support SMEs in navigating the technology-driven CSRD compliance landscape.