Implementation of the CSDR Directive (update)

At a glance

• Finland implemented the Corporate Sustainability Reporting Directive (CSRD) which came into force at the beginning of 2024.
• Reporting will start in 2025, requiring that information on the environmental, human rights and other social impacts of a company be disclosed annually in a sustainability report included in the company's annual report.

Update January 2024

The Finnish Parliament has transposed the CSRD into national law. The reporting obligations will enter into force gradually during the financial years 2024 - 2026.

At first, large publicly listed companies will be subject to disclosure requirements, and they will have to disclose their 2024 sustainability data in their annual reports in 2025.

After that, the disclosure obligation will gradually become mandatory to other large companies, publicly listed small and medium Enterprises, and non-European companies with significant operations in the EU.

The process of implementing the CSRD that sets out, among other things, certain Environmental, Social and Corporate Governance (ESG) related reporting obligations, is ongoing in the Finnish Parliament. 

The national act is expected to enter into force on 31 December 2023. Companies of all sizes should be aware of the obligations the CSRD and the national law impose.

Even though not all companies are obligated to meet the requirements and secure sustainability of value chains, a company may need information on social and employee related matters from their contracting parties not bound by the reporting obligations, as an example.

Companies who are bound by the reporting obligations should also note that staff must be consulted about issues relating to ESG reporting. In Finland this would mean ongoing dialogue in accordance with the Co-operation Act.