Sustainability reporting guides companies in measuring, describing, and disclosing their impact on the environment, society, and governance.
What Is Sustainability Reporting?
European Union regulations
- CSRD (Corporate Sustainability Reporting Directive) — many companies are now legally required to report on their sustainability activities.
- ESRS (European Sustainability Reporting Standards) — define what must be measured and reported, and how.
- VSME standard (voluntary sustainability reporting for SMEs) — drawing on the CSRD directive, this allows small and medium-sized enterprises to apply a standalone, lighter set of standards rather than the full ESRS framework. The VSME standard is based on Commission Recommendation (EU) 2025/1710 of 30 July 2025 on a standard for voluntary sustainability reporting by small and medium-sized enterprises.
Estonian context
- A large number of Estonian companies are directly or indirectly affected by CSRD — as subsidiaries, suppliers, or procurement partners.
- Financiers are increasingly requesting sustainability reports or strategies as part of their investment decision-making.
- Transparency and environmental accountability are increasingly expected of companies participating in public and private procurement.