IT sector aims to simplify sustainability reporting for businesses

The May 2025 issue of TööstusEST highlights the increasing pressure on companies to comply with the European Union’s Corporate Sustainability Reporting Directive (CSRD) and how the IT sector is stepping in to ease the transition.

The CSRD significantly expands sustainability reporting requirements (covering environmental, social, and governance—ESG—factors) to include not only large corporations but also SMEs involved in value chains.

To address this, Estonia’s Ministry of Economic Affairs and Communications has partnered with regional organizations, including the Estonian Association of Information Technology and Telecommunications (ITL), to develop ESG Tool—a digital platform that helps businesses understand and meet new reporting obligations. Scheduled for release in autumn 2025, the platform will be freely available in the national languages of Estonia, Latvia, Lithuania, and Finland.

Allan Tamme, Head of Innovation and Sustainability at ITL, stresses that the tool is designed especially with SMEs in mind. It offers companies a user-friendly way to gather, organize, and analyze relevant data without hiring external consultants. Ideally, data collection would be automated and integrated into existing digital processes.

Tamme urges businesses to see ESG not as a bureaucratic burden but as a strategic asset: improving sustainability can reduce resource use, boost competitiveness, and increase long-term resilience. The ESG Tool also aligns with EU regulations and helps companies map their sustainability impact and set development goals.

As CSRD obligations expand over the next few years, the IT sector sees an opportunity to support companies in embedding sustainability into their business models through digital innovation and automation—making ESG both manageable and meaningful.

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