Estonian financial radio Äripäev: the corporate sustainability reporting directive pushes companies out of their comfort zone

While 2024 was a year of growing awareness regarding ESG and sustainability topics, 2025 brings real obligations. The European Union’s Corporate Sustainability Reporting Directive (CSRD) has now been adopted in Estonia, and companies must start preparing detailed ESG reports.

On the Estonian financial radio station Äripäev, ESG practitioner and ESG Tool methodology working group leader Kristiin Bauer highlighted two main approaches: “Some companies see ESG requirements as an opportunity to improve management and strengthen their connection with investors, while others perceive them as a bureaucratic burden. However, inertia has to come from somewhere—otherwise, companies will remain in their comfort zone.”

In some sectors, ESG has already become a competitive advantage, particularly for companies engaged with international investors. According to host Helen Klettenberg, many businesses have implemented efficient environmental, occupational health and safety, and quality management systems, but data management remains a challenge.

Technology and data analytics help companies cope with ESG obligations. Currently, simpler data processing tools dominate the market, but several promising startups are emerging with methodological solutions. Additionally, by the end of the year, the government plans to launch a brand-new ESG Tool.

Whether ESG becomes a constraint or a growth opportunity depends on corporate culture and strategic approach. Listen to the Juhtimisaudit podcast, where Helen Klettenberg and Kristiin Bauer discuss the current ESG landscape in Estonia.

Listen to the radio discussion here: https://www.aripaev.ee/raadio/episood/310125-juhtimisaudit

Photo: Rain Jüristo

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