Government proposes to further reduce sustainability reporting obligations of companies

Under the Government’s proposal, the obligation to produce sustainability reports would only apply to large companies. Going forward, the reporting obligation would only apply to companies with a turnover of over EUR 450 million that employ more than 1,000 people. As a result, the number of companies subject to the reporting obligation in Finland would fall from 1,300 to 130.

“We continue our systematic efforts to lighten the administrative burden of Finnish companies. Following this deregulation, a considerable number of companies will be relieved of sustainability reporting. Our goal is to ensure that the reporting obligations are fit for purpose and reduce the administrative burden where possible,” says Minister of Employment Matias Marttinen.

On 26 March 2026, the Government submitted to Parliament a proposal to amend the Accounting Act and the Auditing Act. It is based on the EU’s Omnibus package, which balances sustainability goals with the administrative burden of companies. The Government proposal implements the second phase of the Omnibus package, which reduces the scope of application of reporting rules to cover only large companies. 

As part of the first phase of the Omnibus package, the Government submitted a proposal in September 2025 to postpone the entry-into-force of the reporting obligations by two years. 

Rules could be applied for 2026 financial years

The changes now proposed would enter into force on 30 June 2026, but the new provisions could already be applied for financial years beginning on or after 1 January 2026. 

A listed company employing more than 500 people that has published a sustainability report for an accounting period beginning on or after 1 January 2024 could refrain from producing and publishing a sustainability report for an accounting period beginning on or after 1 January 2025 if, based on the new rules, the company was no longer subject to the reporting obligation.

Inquiries:
Jaakko Aromaa, Special Adviser to the Minister of Employment, tel. +358 295 047 110 (questions to the Minister of Employment)
Timo Kaisanlahti, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 139