The EU simplified sustainability reporting – what does it mean?
Regulation eased but sustainability requirements remain.
Sustainability reporting has long been an important topic for Finnish companies. Every business needs sustainability data, but who is actually required to report?
In 2026, the EU introduced a significant change: sustainability reporting rules were simplified, reducing the burden for many companies. However, the need for accurate sustainability information has not disappeared.
On March 18, 2026, the Omnibus I package came into effect, bringing major changes to the Corporate Sustainability Reporting Directive (CSRD).
Who is sustainability reporting required for now?
Under the new rules, mandatory sustainability reporting applies only to companies that meet both conditions:
- Over 1000 employees
- Annual turnover above 450€ million
If your company does not meet both thresholds, the CSRD no longer applies.
Most Finnish SMEs are now outside the scope of official regulation. This is a major relief, especially for smaller businesses, as CSRD compliance was an extensive and costly project.
However, it’s important to note that sustainability data is still needed. In fact, in many cases more often than before.
Why is sustainability data still critical?
Regulatory relief does not mean companies can ignore sustainability. Two practical reasons keep it firmly on the agenda:
1. Your customers demand transparency
Large companies must continue to report their value-chain emissions (Scope 3) under CSRD. This means they will keep requesting sustainability data from their suppliers. For many SMEs, the pressure comes directly from key clients. Lack of reliable data could cost you business.
2. Financial institutions expect sustainability information
Banks and insurers increasingly include sustainability-related questions in loan negotiations and contract renewals. The EU Green Finance guidelines reinforce this trend.
How should SMEs approach sustainability reporting?
The change is good news: companies no longer need a large, resource-intensive CSRD project. However, you still need key company data easily available to respond quickly when requested.
Start by collecting at least the following information:
- Energy consumption and major environmental impacts
- Employee headcount, working hours, and well-being statistics
- Governance and responsibility principles (e.g., ownership structure, ethical guidelines, decision-making policies)
When these metrics are properly recorded and stored in one place, you can reuse them for customer questionnaires, funding applications, and bids.
How to get started easily with sustainability reporting?
Our guidance is simple: you don’t need a large-scale project. You need clear and reliable core metrics ready to use. Digital financial management brings much of this data within reach.
With Finago Procountor, you already have data on: working hours, payroll and labor costs, expenses, key financial figures.
This financial data can be easily complemented with environmental metrics, such as carbon footprint calculations. Finago Procountor also integrates with sustainability solutions, eliminating the need for manual data collection from multiple systems.
FAQ about sustainability reporting
Does CSRD (Corporate Sustainability Reporting Directive) still apply to SMEs?
No, if your company has fewer than 1000 employees and annual turnover under 450€ million. However, customers and financial institutions may still require sustainability data.
Most SMEs are now exempt from mandatory CSRD reporting, which significantly reduces administrative costs. However, sustainability data is still needed in many business situations and often more frequently than before.
Energy consumption, staff numbers, working hours, and company governance and responsibility practices (e.g., ownership structure, ethical guidelines, and decision-making principles).
EU regulatory relief is positive, but market expectations for responsible business practices remain high. Managing sustainability data can be simple with a structured approach:
- List the information your customers or bank usually request.
- Collect and verify the data once in one place.
- Use digital systems and automation to keep data accurate and current.
Sources: EU Omnibus I Directive (in force 18 March 2026); Corporate Sustainability Reporting Directive; Dittmar & Indrenius, “Where does Finland stand in summer 2026?” (June 2026).