With the entry into force of the CSRD Directive, small and medium-sized enterprises officially become obligated to publish a Sustainability Report, in which they must report on their own impact on the environment and society and share information about their sustainable business management practices. The aim of this paper is to bring closer the importance and form of non-financial reporting, to determine the extent to which small and medium-sized companies in the Republic of Croatia publish non-financial information, given that they have not had this legal obligation until now, and to show the state of non-financial reporting in the countries of the European Union. The methods used in writing this paper are the method of analysis, the method of description, the method of comparison and the method of compilation. According to the analyses conducted in this study, it has been confirmed that small and medium-sized enterprises indeed play a significant role in the Croatian economy. The results of the analysis of randomly selected small and medium-sized enterprises indicate that these companies do not disclose non-financial information through a separate Non-Financial Report, but rather through other reports. Additionally, according to the author's subjective assessment, companies generally do not present non-financial information with the intention of reporting on sustainability. Medium-sized enterprises mostly report across all three aspects of sustainability (environmental, social, and governance), while small enterprises provide limited reporting on the social and governance aspects and do not report on the environmental aspect at all.