The context

By 2025, all EU countries must incorporate the European Corporate Sustainability Reporting Directive (CSRD) into their national laws. This directive requires large companies and listed companies, including listed small and medium-sized enterprises, to regularly report on their social and environmental impact and share information about how they operate and manage environmental, social and governance issues in an ESG reporting format.

What is the challenge?

Due to the topic being new and multilayered, many companies find it difficult to navigate their effort toward sustainability and understand the specific requirements of the ESG reporting.

Our solution

In cooperation with public and private sector organizations from Estonia, Finland, Latvia, Lithuania, and Poland, we are developing an international web platform and digital tool to support the sustainability journey for small and medium-sized companies.

Our solution - the ESG Tool – is a free-of-charge digital platform designed to help businesses navigate the complexities of sustainability standards and prepare for reporting.

However, our project goes beyond providing a tool; it actively educates both the public and private sectors. We offer tailored educational content to demystify sustainability concepts and practices, enhancing understanding of ESG principles across diverse audiences. By engaging stakeholders with informative materials, we foster a culture of sustainability and corporate responsibility. This approach equips businesses and communities with the knowledge and skills to integrate ESG principles into daily operations and decision-making.

How it works

Scheduled to be completed by the end of 2025, our tool, which is worked out as a result of the sustainability reporting methodology developed in accordance with the EFRAG standards and guidelines, will enable companies to assess the impact of their operations on the environment, social welfare, and economic sustainability. It will allow companies to map and analyze their position in ten sustainability-related areas: climate change, pollution, water and marine resources, biodiversity and ecosystems, resource usage and circular economy, labor force, employees in the value chain, affected communities, consumers and end-users, and business conduct. The analysis conducted using the tool will provide recommendations to the company for achieving its sustainability goals.

In addition to the tool, the web platform will include descriptions of sustainability reporting standards, general sustainability guidelines, educational videos, examples of best practices, and references to useful web materials.

The platform provides recommendations for next steps, making reporting easier and more efficient while increasing the quality of the reported data.

The ESG Tool will be available in English, Estonian, Finnish, Latvian, and Lithuanian languages, and it will be freely accessible to all.

Current state of affairs

We started by conducting extensive research to identify key ESG metrics and benchmarks relevant to small and medium-sized businesses. Engaging directly with our target group, we collected best practices through surveys, interviews, and workshops, ensuring their experiences and needs shaped our approach.

This collaborative process allowed us to integrate real-world insights and practical solutions into our tool. By combining academic rigor with practical input, we've created a methodology that not only measures but also enhances sustainability practices, driving meaningful and impactful ESG outcomes.

This fall, we will commence collaboration with a leading development company to create our ESG Tool.

Throughout the development process, we will actively seek feedback from our target groups, ensuring their insights and needs drive our design and functionality. Regular consultations and focus groups will be integral to our approach, allowing us to refine and optimize the tool based on real-world usage and feedback. This iterative process guarantees that the final product is user-friendly, effective, and aligned with the sustainability goals of small and medium-sized businesses, fostering widespread adoption and impactful ESG practices.

We will pilot the ESG Tool by partnering with a select group of businesses in Estonia, Latvia, Lithuania and Finland at the beginning of next year.

In the pilot phase, we will test the tool's features in real-world scenarios, providing participants with hands-on training and support for seamless integration. We will collect detailed feedback on usability, effectiveness, and impact to make necessary adjustments. By collaborating with early adopters, we aim to fine-tune the tool to meet diverse business needs and drive meaningful sustainability outcomes.

Our vision

Our project contributes directly to the green transition and fosters a more environmentally friendly and sustainable business environment.

We aim to simplify ESG reporting and empower businesses to make more sustainable decisions. By offering actionable insights and educational resources, we strive to drive positive environmental, social, and governance impacts, creating a more sustainable and equitable future for all.