Being a Member State of the European Union, Finland has seen significant regulatory changes and developments over the last 12 months, primarily stemming from the EU. These include, among others, the implementation of the EU Corporate Sustainability Reporting Directive 2022/2464 (CSRD) into the Finnish Accounting Act, Auditing Act and Companies Act, as well as other relevant laws, and the initiation of preparations for new national legislation to implement the EU Corporate Sustainability Due Diligence Directive 2024/1760 (CSDDD).

There is not one exhaustive definition of the term “ESG” under Finnish law. However, simply put, ESG refers to environmental, social and governance aspects of sustainability, and in Finland, ESG is generally defined as corporate responsibility.

The Consumers’ Union of Finland, for example, defines corporate social responsibility as advancing sustainable development in companies, which includes, inter alia, that the company’s operations are reliable, economical, socially acceptable and respectful towards the environment. Furthermore, socially responsible businesses respect human rights, evaluate their environmental impact, report on and are open about their operations. These principles are also applied to companies’ subcontractors and cooperation partners. 

From a company law perspective, the purpose of a company is to generate profit for its shareholders, unless otherwise provided in the company’s articles of association (the Companies Act 624/2006). While ESG considerations are not explicitly mentioned as part of the purpose of a company under the Companies Act, the related preparatory works (Government Bill 109/2005) indicate that the generation of profit in the long term and the increase of the value of the company’s shares often require companies to operate in a socially acceptable way, even when not required to do so by mandatory law.

According to a study published by Finnish Business & Society (FIBS) in 2023, large Finnish companies are currently well-positioned for impactful sustainability work. Responsibility is reflected in their strategy and top management agenda, and its importance and benefits are recognised. Moreover, the war in Ukraine and the pandemic have led to an increasing commitment to CSR. At the same time, while many companies are committed to international frameworks for responsibility, there is still much work to be done in translating sustainability commitments into concrete actions regarding climate, nature, human rights and transparent reporting.

Even though there are several laws in Finland relating to various ESG themes, there is currently no specific legislation or regulation in Finland regarding corporate responsibility. 

However, as an EU Member State, Finland must implement the EU Corporate Due Diligence Directive (CSDDD) by 26 July 2027, pursuant to the EU Commission’s Omnibus “stop-the-clock” proposals adopted in April 2025. The implementation of the CSDDD requires new national legislation, which will be prepared under the leadership of the Ministry of Economic Affairs and Employment in cooperation with various other ministries and interest groups. In connection with the preparation work for the implementation of the CSDDD, the working group may also assess the national regulatory needs brought about by the newly adopted EU’s Forced Labour Regulation.

In terms of ESG reporting, CSRD (replacing the Non-Financial Reporting Directive (NFRD) from 2014) has been implemented primarily into the Finnish Accounting Act, Auditing Act, Companies Act and the Securities Market Act. The new reporting requirements start to apply gradually between 1 January 2024 and 1 January 2028, with the first reports from large listed companies being published in 2025. However, the Omnibus “stop-the-clock” proposal, adopted in April 2025, postpones the reporting obligations for the 2nd and 3rd wave companies by two years, with further reductions to the scope and obligations envisaged to follow in the Omnibus “substance proposal” still subject to negotiations by the EU co-legislators.

Financial and insurance markets. In the context of financial and insurance markets, Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (the Taxonomy Regulation), which aims to create uniform criteria for sustainable investments, applies to certain issuers and financial market participants. In addition, entities such as asset managers, investment firms, insurance companies and credit institutions are also subject to Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the Sustainable Finance Disclosure Regulation) and related regulations and guidelines. The ESG amendments in the EU Directive on Markets in Financial Instruments (2014/65/EU) (MiFID II) regarding sustainability preferences apply to banks and investment firms that manufacture and distribute financial products and stipulate that sustainability objectives and factors have to be integrated into financial product governance. Furthermore, the Finnish Financial Supervisory Authority (FIN-FSA) supervises financial market participants’ and issuers’ compliance with the Taxonomy Regulation, the Sustainable Finance Disclosure Regulation, and the MiFID II ESG amendments, and has also issued local regulatory guidance on these issues. 

Environmental

The most important piece of environmental legislation is the Environmental Protection Act (527/2014), pursuant to which companies must organise their operations in such a way that environmental pollution can be prevented in advance, and if it cannot be fully prevented, it must be limited to the lowest level possible.

Other major laws regarding environmental needs are, for example, the Nature Conservation Act (9/2023), the Act on Environmental Impact Assessment Procedure (252/2017), the Waste Act (646/2011), the Chemicals Act (599/2013), the Forest Act (1093/1996), the Water Act (587/2011), and the Mining Act (621/2011). The Waste Act is currently under reform and a new Circular Economy Act is being prepared to replace the Waste Act currently in force to enable market-based use of recycled materials and a life cycle approach. Additionally, the Finnish Land Use and Building Act (132/1999) is undergoing a reform process focusing on improving the effectiveness of the legislation towards climate change mitigation through, inter alia, proposing more extensive requirements for reducing the climate effect of buildings. Based on the new Building Act (751/2023), the buildings’ carbon footprint and carbon handprint must be reported during the building permit phase, for example. The new Land Use Act (132/1999) and the Building Act entered into force on 1 January 2025.

The Finnish Government supports sustainable industries by means of several regulations, such as the Act on Production Subsidy for Electricity Produced from Renewable Energy Sources (1396/2010), the Government Decree on Granting Aid to Businesses for the Promotion of the Circular Economy and Sustainable Green Growth (1197/2020), and the Government Decree on Granting Energy Aid (31/2023), aiming to promote investments and research projects in renewable energy and energy efficiency that support Finland’s carbon neutrality goals. The new Climate Change Act (423/2022), which entered into force on 1 July 2022, makes it possible to initiate legal proceedings against the Finnish Government on the basis that the Government’s climate plans are deemed insufficient. Furthermore, the Act sets new climate targets and lays down provisions on the national climate change policy plans. Finally, a new Act on Handling of Certain Environmental Issues at the Permit and Supervisory Authority is being enacted to unify the permitting and supervisory practices to foster the green transition and investments.

In addition to the domestic environmental legislation, significant regulatory changes and developments stemming from the EU are currently being implemented into national legislation impacting inter alia the forest industry. As a result of the EU Deforestation Regulation (EU) 2023/1115, a new Deforestation Act is being drafted, which will include national complementary regulation, define the competent authority and its powers, and outline the consequences of non-compliance with the EU Deforestation Regulation.

Furthermore, the Regulation on Nature Restoration (EU) 2024/1991 came into effect in August 2024, aiming to restore the EU’s biodiversity and stop further biodiversity loss, to reach climate neutrality by 2050, and inter alia adapt to climate change. Each Member State shall develop a national restoration plan by July 2026, setting out restoration needs and measures to fulfil their obligations and achieve the targets of the law adapted to the national context. Thus, Finland’s national restoration plan will ultimately define those involved in the implementation of restoration, whether companies’ activities should be aligned with the EU’s restoration objectives, and whether companies are obliged to participate in habitat restoration. By restoring original habitats, companies can bring back natural values weakened by business operations as part of their environmental responsibility work.

Social

There are a number of laws related to the social component of ESG. In terms of labour rights, the Finnish Employment Contracts Act (55/2001) provides a robust framework for protecting an individual employee’s rights and ensuring fair treatment in the workplace. The Working Time Act (872/2019) and the Annual Holidays Act (162/2005) are other key pieces of legislation protecting individual employees. The Occupational Safety and Health Act (738/2002) aims to improve the working environment and working conditions to protect and maintain employees’ ability to work, and to prevent occupational accidents, diseases and other work-related health risks. In terms of collective labour legislation, the Collective Agreements Act (436/1946) and the Co-operation Act (1333/2021) are the main acts. The Act on Contractor’s Obligations (1233/2006) provides obligations on enterprises concluding contracts on temporary agency work or subcontracted labour to ensure that the statutory terms of employment are observed. In addition, the Non-Discrimination Act (1325/2014), the Act on Equality between Women and Men (609/1986), and the Consumer Safety Act (920/2011) are other significant examples of Finnish laws related to social aspects such as diversity, equality and inclusion, and consumer protection.

Furthermore, recent legal developments, stemming from the EU, aim to better involve consumers in the green transition by, e.g. protecting them from companies’ misleading or inaccurate information and marketing practices regarding environment and sustainability (greenwashing) and enabling consumers to adopt more sustainable and environment-friendly consumption habits. The adoption of the Directive on Empowering Consumers for the Green Transition (Directive 2024/825 of the European Parliament and of the Council) will require amendments to the Finnish consumer protection legislation. The Ministry of Justice is currently preparing a government proposal and the necessary measures to adopt the Directive must be published by 27 March 2026 and applied from 27 September 2026. 

Governance

There are also a number of regulations, often based on EU directives, addressing corporate governance issues. 

Such regulations include, for example, the Accounting Act (1336/1997) (see also Question 7 below), which covers rules concerning sustainability reporting in accordance with the requirements of the CSRD. Also, pursuant to the Securities Market Act (746/2012), listed companies must prepare a corporate governance statement to be included either in the issuer’s board report or issued as a separate statement. Publication of the corporate governance statement increases transparency relating to good corporate governance practices. Moreover, the EU Directive on improving the gender balance among directors of listed companies 2022/2381 has been implemented in the national legislation as of 28 December 2024. Accordingly, large listed companies will have an objective that members of the underrepresented sex hold at least 40% of the positions in the board of directors by 30 June 2026.

Other legislation concerning governance-related aspects of ESG includes, for example, the Act on Preventing Money Laundering and Terrorist Financing (444/2017), which aims to prevent money laundering and terrorist financing, promote their detection and investigation, and reinforce the tracing and recovery of the proceeds of crime.

Data protection and privacy compliance is also an important part of corporate governance. The main laws that apply to processing of personal data are the EU General Data Protection Regulation (2016/679, GDPR) and the supplementing Finnish Data Protection Act (1050/2018). The GDPR sets out the key principles and requirements for the processing of personal data. In addition, there are several sectoral laws in place supplementing the GDPR. The GDPR is based on an accountability principle, which requires companies to demonstrate their compliance with the GDPR. The companies must therefore implement a data governance framework that includes roles and responsibilities, policies, guidelines and processes to ensure that privacy and data protection is embedded into their operations. The Finnish Act on the Protection of Privacy in Working Life (759/2004, WLA) supplements the GDPR in Finland and applies to the privacy of employees in the employment context and job applicants in recruitment. The WLA lays down relatively strict rules on the processing of employee data, technical surveillance in the workplace, and retrieving and opening employees’ emails. 

Furthermore, Finland has implemented the EU’s Whistleblowing Directive into the Finnish Whistleblower Protection Act (1171/2022). Under this Act, private sector employers (employing at least 250 employees) and public sector employers (employing at least 50 employees) are obliged to set up a whistleblowing channel and put in place related governance practices.

With regard to the relationship between antitrust laws and sustainability issues, the Finnish Competition and Consumer Authority (FCCA) is yet to issue further guidance or decisions. ESG measures and companies’ sustainability agreements are assessed in accordance with the general competition rules. The FCCA is expected to carefully follow the European Commission’s approach to sustainability arguments in competition law analysis. However, the FCCA’s final approach remains to be seen. 

Financial and insurance markets

Apart from the Sustainable Finance Disclosure Regulation, the Taxonomy Regulation and MiFID ESG amendments, the financial and insurance sector is not generally subject to any national ESG legislation. However, for example, certain Finnish pension insurers are required by law to invest pension funds profitably and securely, which can be interpreted to mean, among other things, also investing in environmentally sustainable targets. In addition, entities subject to the Act on Supplementary Pension Funds and Supplementary Pension Foundations (947/2021) are obliged to take environmental, social and governance factors into account in their operations.

The first climate change case was filed by Greenpeace and the Finnish Association for Nature Conservation against the Finnish government on an administrative law question in relation to the government’s climate report on 28 November 2022. While in its ruling of 7 June 2023 the Supreme Administrative Court ultimately found — in a 3–2 split verdict — that there had been no appealable decision and thus it could not rule on the substance of the complaint, the ruling nevertheless clarified that should government passivity in combatting climate change continue, the Supreme Administrative Court could be able to rule on the substance of a similar future complaint. 

Approximately a year later on 22 August 2024, Finnish environmental and human rights organisations filed another case against the Finnish government, arguing that the government’s inaction violates Finland’s national Climate Act.

With respect to the prevention of greenwashing, the Finnish Consumer Ombudsman has issued guidelines on marketing statements that relate to the environmental effects of a product (1992, revised in 2001 and 2019). 

Further, environmental responsibility of the forestry sector has recently been in public scrutiny and the focus of strong media attention in Finland. In August 2024, a logging machine acting as a subcontractor to a major Finnish forestry group repeatedly drove over a critical habitat for freshwater pearl mussels at Hukkajoki River in Northern Finland, destroying thousands of extremely endangered animals and causing severe environmental damage. The matter is currently being investigated by the police and environmental authorities as an aggravated nature conservation offence. The incident is regarded as one of the most damaging environmental incidents of the decade so far in Finland. Furthermore, in September 2024, another similar suspicion concerning potential criminal action caused by the same company’s logging action against freshwater pearl mussels came to light. The events have highlighted the need for more effective compliance monitoring and also to assess and possibly implement more detailed legislation regarding threatened species, including requirements for gathering and obtaining information, as well as liability for damages or destruction of habitats.

Soft non-binding laws

Finland is committed to the UN’s 2030 Agenda and the UN Sustainable Development Goals (SDGs) and has consistently ranked number 1 in the SDG Index from 2021 to 2024. Finland’s National Action Plan for the implementation of the UN Guiding Principles on Business and Human Rights (UNGP) was adopted and published in 2014.

Finland is committed to promoting compliance with the OECD Guidelines for Multinational Enterprises (on NCP, please see further below). 

Finland has also been active in ratifying International Labour Organization (ILO) conventions, with the latest being the ILO Violence and Harassment Convention, 2019 (No. 190), ratified in June 2024.

Many larger Finnish companies have publicly stated their commitment to the SDGs or other non-binding international frameworks and seek to implement such goals in their strategy, policies and procedures.

Several organisations, such as asset managers and private equity fund managers, have voluntarily committed to certain soft law principles, such as the United Nations’ Principles for Responsible Investing (UN PRI), and many investors require that, for instance, fund managers take these principles into account in their operations.

Stakeholders

The Finnish government, as well as institutional and other investors in listed companies, are some of the key stakeholders in engaging in ESG-related matters and promoting ESG aspects on companies’ agendas. 

Pursuant to the government resolution on the state ownership policy, directing the State’s actions in its capacity as a shareholder and applying to all limited liability companies in which the State holds interests, dated 23 May 2024, sustainability must be integral to the strategies, business models and executive remuneration schemes of state-owned companies. Companies must be at the forefront of sustainable business conduct and promote such sustainability objectives that serve their competitiveness. Boards of directors are responsible for company sustainability. 

Even though institutional investors are not subject to legislation imposing ESG-related requirements on their investments, many of them have implemented a responsible investment strategy or policy and committed to different initiatives that support responsible investing, such as the UN PRI. Consequently, certain institutional investors have stated that they emphasise ESG factors in their investments and exclude from their investments companies acting in certain industries, such as tobacco or controversial weapons, or companies whose activities are in breach of international standards. After the war in Ukraine started, many companies also ceased their business in Russia due to ethical reasons and public pressure. Also, several institutional investors require specific ESG reporting from fund managers, which requires the fund managers to put in place ESG-related policies and measures for promoting and following up on ESG-related questions in their portfolio. 

In particular, foreign institutional investors that have invested in Finnish public companies may rely on the ESG-related recommendations given by proxy advisors, such as the Institutional Shareholder Services group of companies (ISS). For example, the latest international sustainability proxy voting guidelines, published by ISS in January 2025, also concern Finland and, among other things, include recommendations to generally vote in favour of social and environmental proposals that seek to promote good corporate citizenship while enhancing long-term shareholder and stakeholder value. In addition to institutional investors, certain non-governmental organisations are also active in promoting ESG targets, and there have been examples of NGOs proposing to include ESG-related targets in listed companies’ articles of association.

National Contact Points (NCPs)

The Committee on Corporate Social Responsibility of the Ministry of Economic Affairs and Employment acts as the Finnish National Contact Point for the effective implementation of the OECD Guidelines for Multinational Enterprises together with the Ministry of Economic Affairs and Employment.

The Ministry is responsible for corporate social responsibility in the Finnish Government. Furthermore, the Committee actively pursues a stronger national and international social responsibility policy, and economically, socially and ecologically responsible operation and production methods among enterprises and other organisations.

Reporting

The requirements included in the Accounting Act concern the publication of a corporate sustainability report in accordance with the CSRD and applicable European Sustainability Reporting Standards (ESRS). In the report, companies must describe their business model and strategy, including their resilience in relation to risks related to sustainability, as well as opportunities and plans, including implementing actions and related financial and investment plans, to ensure compatibility with the Paris Agreement and the objective of achieving climate neutrality by 2050. The report shall include time-bound targets related to sustainability and the progress to achieve those targets and describe sustainability-related policies and the implemented due diligence process, the principal actual or potential adverse impacts in the company’s own operations and in its value chain, as well as actions taken to prevent, mitigate, remediate or bring an end to actual or potential adverse impacts, and the result of such actions. The report shall also disclose principal sustainability risks and how the risks are managed, and relevant indicators in relation to the above. The sustainability report must be included in the company’s board report and published annually for each financial period, starting in 2025 for large listed companies. Sustainability reporting under the CSRD is currently subject simplification by the EU Commission’s first Omnibus package published in February 2025.

Private equity

Private equity fund managers are impacted by ESG through the Sustainable Finance Disclosure Regulation and the Taxonomy Regulation, which require these actors to consider and disclose ESG-related matters in their operations and when marketing their products to fund investors. In addition, some of the portfolio companies of private equity funds are or will be subject to CSRD. Most private equity fund managers have already considered ESG matters in their investment activities for years. The Finnish Venture Capital Association has also taken an active role in promoting awareness and measures to be taken in connection with said regulation — and ESG more generally — within the private equity field in Finland. ESG considerations are also one of the key considerations on the agenda of investors of private equity funds who are interested not only in receiving information and reporting in relation to ESG-related policies and incidents, but also in the impact that their investee funds are able to make. ESG due diligence, covering not just risks but also any potential to create value, is also becoming an increasingly important element of the investment processes of private equity fund managers.

Hedge funds/asset managers

Similarly to private equity fund managers, hedge fund managers and asset managers are also impacted by ESG in Finland through the Sustainable Finance Disclosure Regulation and the Taxonomy Regulation. Several asset managers are emphasising ESG in their investment operations, for example through employing personnel focusing on ESG analysis in relation to their investment activities and by requesting their investment targets to report certain ESG-related information; for instance, in connection with the due diligence process. Our understanding is that asset managers are integrating ESG in their operations more actively as a result of both the general trends of focusing on ESG and the increased interest of their clients.

Banks

In addition to being subject to the Sustainable Finance Disclosure Regulation and the Taxonomy Regulation, banks are placing increasing emphasis on considering ESG-related risks in their lending operations due to, among other things, the FIN-FSA’s requirement for the entities supervised by it to consider the risks and effects deriving from climate change in their operations. Banks are also providing financing specifically for sustainable purposes: for example, certain banks provide corporate loans and consumer loans that are labelled as “green” due to being used for financing acquisitions, investments or projects with a green impact. Furthermore, sustainability-linked financing products (such as loans and bonds) are offered by banks.

ESG-related considerations are subject to increasing attention, especially among listed companies that traditionally have been subject to ESG-related reporting requirements and public scrutiny. Application of the CSRD as of 1 January 2024 with first reports due in 2025 will expand both the scope of reported data points and the scope of companies subject to reporting obligations. ESG matters are common on the agendas of the boards of directors of listed companies and usually considered by the entire board instead of specially appointed committees, and attention on ESG is also steadily increasing in private companies. The implementation of the CSRD and CSDDD will further increase the duties of companies’ boards of directors and the need to discuss and proactively monitor the relevant ESG matters by boards of directors. We have also seen a significant increase in ESG-specific roles in listed companies and the financial services sector, as companies prepare for the demands of the regulations and challenges and opportunities relating to their operating environment.

ESG ratings are commonly used by institutional investors and fund managers as part of investment decision-making and assessing the sustainability of investments. Certain Finnish companies also utilise ESG ratings in describing the ESG characteristics of their business and operations to their investors. Sustainalytics, MSCI, ISS ESG and EcoVadis are commonly used ESG rating providers in Finland. Certain financial market actors have also provided their retail investor customers with access to ESG rating data.

Private companies 

While many larger private companies are already actively integrating sustainability into their strategy and operations, there are still significant differences between small and larger companies in promoting responsibility and sustainable development. According to a survey conducted by the Finland Chambers of Commerce in 2023, one in ten SMEs would like to promote responsibility and sustainable development in their business but do not know how to get started. SMEs are, however, increasingly facing pressure in terms of ESG-related inquiries when operating in larger companies’ value chains. This pressure is only expected to accelerate once the requirements of CSRD and CSDDD take full effect.

As one example of private company-related developments in ESG reporting, the Nordic Accountant Federation (NAF), consisting of three accounting organisations in Finland, Sweden and Norway, issued its own reporting standard in 2021, the Nordic Sustainability Reporting Standard (NSRS), which is targeted towards small and medium-sized enterprises (SMEs) in the Nordic region and aims to support SMEs in their sustainability reporting practices.

Public companies 

Many public companies have already long emphasised ESG considerations in their operations and sought to take ESG-related business opportunities into account in their business models and strategies and in the issuance of financial instruments, as well as considering ESG-related risks in their risk management, transactional due diligence and commercial decision-making. Many large public companies have already published sustainability reports for some years and, as mentioned earlier in Questions 3 and 7, large companies will be required to publish sustainability reports in accordance with the CSRD. It can also be expected that public companies will want to align with ESG demands from institutional and other shareholders referred to above in the Stakeholders section of Question 6.

Government-owned organisations 

As mentioned above in Question 6, pursuant to the government resolution on the state ownership policy, dated 23 May 2024, sustainability must be integral to the strategies, business models and executive remuneration schemes of state-owned companies. Companies must be at the forefront of sustainable business conduct and promote such sustainability objectives that serve their competitiveness. 

In the field of public procurement, new sustainability criteria templates have been published. These templates include specific criteria for various categories, such as cloud computing procurements and the prevention of foreign employee exploitation. They can be applied in public procurements as mandatory criteria, evaluation criteria or contract terms. The criteria templates have been published through cooperation between several ministries and state organisations. While it is not mandatory to use them, they are provided as a tool for contracting authorities (public sector clients) to use in their public tendering competitions.

The implementation of the new CSRD reporting requirements in companies’ operations requires significant preparation and the development of additional capabilities and processes. Large and listed companies need to assess the materiality of their actual or potential impacts on the environment, society, human rights and corporate governance and the impact of the sustainability factors on their operations, conduct gap analysis with respect to their current sustainability reporting, to the extent available, and establish processes, an appropriate reporting organisation, information gathering tools and mechanisms and necessary IT infrastructure in order to be compliant with the new reporting requirements. The process of collecting the relevant sustainability information in the companies’ value chains can be challenging and establishing the required systems, resources and controls for data collection is expected to be burdensome. These challenges also affect many smaller companies to the extent that they act in large companies’ supply chain.

Moreover, according to a survey on large Finnish companies published by Finnish Business & Society (FIBS) in 2023, the skills gap was identified as an obvious bottleneck for the future. A survey conducted by the Finland Chambers of Commerce in 2023 found that the same is also true for SMEs.

In the financial and insurance sector, the major challenges can be seen to relate to ensuring comparability between ESG data generated under different frameworks and by different data providers. This imposes challenges in assessing the ESG impacts of investments. For example, comparing different sustainability-linked and green financing products may be challenging when the company-specific green financing frameworks include different parameters to be monitored. 

For asset managers and investors, challenges are also posed by differing ESG reporting standards and formats, which makes comparability between target companies and funds more difficult. 

The new rules aiming to strengthen the protection of consumers against greenwashing are also increasing the need of companies to verify all statements concerning environmental benefits or characteristics of products or services. Going forward, it will be essential to provide clear and accurate information that is based on reliable and verifiable methods and standards.

The Ministry of Economic Affairs and Employment is responsible for corporate social responsibility (CSR) issues in the Finnish Government. CSR-related issues are also dealt with by the Ministry for Foreign Affairs (external economic relations, development policy), the Prime Minister’s Office (State’s ownership policy, sustainable development), and the Ministry of the Environment (environmental responsibility). Ministries coordinate their efforts and discuss them with stakeholders. CSR issues are also dealt with by the Committee on CSR, which works under the Ministry of Economic Affairs and Employment.

With regard to NGOs, Finnwatch seeks to promote ecologically, socially and economically responsible business conduct by influencing companies, economic regulation and public discourse. In addition, the Finnish Corporate Responsibility Law Association has been operating since 2020. The purpose of the association is to organise events, publish writings and promote dialogue related to social responsibility. Finnish Business & Society (FIBS) is the largest corporate responsibility network in the Nordic countries, comprising more than 400 companies and organisations. FIBS’s key task is to bring companies and corporate stakeholders together to share information on best practices and solutions for corporate responsibility.

In the financial and insurance sector, industry associations such as the Finnish Venture Capital Association and Finance Finland provide guidance to their members in ESG and sustainability issues. Finland’s Sustainable Investment Forum (Finsif) serves as a platform for sharing knowledge and facilitating the integration of sustainability factors in investment decisions. In addition, certain institutional investors also employ private measurement frameworks such as the Task Force on Climate-related Financial Disclosures and the Carbon Disclosure Project.

Universities and Finnish academia are also increasingly focused on the research of ESG related topics.

Apart from the EU Taxonomy framework, there is no national Finnish taxonomy.

In Finland, the new ESG regulations primarily derive from EU legislation, and it is expected that the focus in the next few years will be on the national implementation of and preparation for the plethora of newly adopted EU sustainability legislation. At the same time, the EU’s first Omnibus package simplifying certain new sustainability regulations (CSRD, CSDDD, Taxonomy, and CBAM) is already proposing to cut down and reformulate the new rules, creating unpredictability in the sustainability regulatory landscape. Once the national implementation (along with changes envisaged by Omnibus) is in place and the new legislation starts to apply, the next point of interest will evidently lie in the authority and court practice interpreting the new rules and the market practices of companies forming in parallel. Finnish companies are generally considered well-placed for impactful sustainability work, and the new legislation is expected to accelerate the improvement of concrete processes and proactive monitoring, calling for a systematic approach and targeted investments. In the long term, the success of companies will likely depend on their ability to transform the increasing regulatory and administrative burdens into enhanced risk management and corporate governance, as well as opportunities for innovation and competitive advantage.