The coalition agreement signed in April of last year for the period 2023-2027 stipulates the creation of two tools for businesses: the innovation step system and the green step system. These tools aim to help businesses assess their innovation capacity and environmental footprint, thereby enhancing their competitiveness.

Last week, the issue was brought to the government's cabinet meeting, where Minister of Economic Affairs and Information Technology Tiit Riisalo (Eesti 200) presented the analysis and proposals regarding the development of the green step system.

Details of the analysis have not been shared with the public, as the cabinet memorandum is marked for internal use only.

Laura Laaster, head of the public relations department at the Ministry of Economic Affairs, told ERR that both the private and public sectors offer various services related to sustainable entrepreneurship (ESG) and sustainability. However, information about these services is fragmented, making it difficult to get a comprehensive overview. This is why the government tasked the ministry with developing the green step system.

The green step system was supposed to be similar to the innovation step system, which Laaster described as having three stages: first, analyzing and assessing a company's innovation capability; second, creating an individual action plan to enhance competitiveness; and third, utilizing the innovation step network to develop the company.

According to Laaster, the analysis confirmed that businesses lack organized information. They sought guidelines and examples of best practices, explanatory materials and other necessary information to help them understand and comply with new requirements.

"As a result of the analysis, we decided not to proceed with creating the green step system but instead to consolidate ESG and sustainability-related information into the existing e-Estonia portal's business gateway," she added.

Laaster mentioned that this portal will provide businesses with information about relevant opportunities and obligations, as well as clear information on regulations, initiatives and best practices.

"Consolidating information into one channel is a more sensible and cost-effective alternative to creating a separate green step tool," Laaster explained. "Many services for moving towards sustainability already exist in the private sector, such as the Responsible Business Forum NGO with its index; there are several consulting companies covering ESG topics on the market and so on, making it unnecessary for the state to intervene where services are already available."

Laaster added that state-provided services, such as green support, already exist. The first step in this support is mapping the entrepreneur's green capability, effectively conducting a green audit. There are also various circular design and ESG masterclasses available, and the development of an ESGTool to support businesses on their sustainability journey is underway.

"In collaboration with the Ministry of Economic Affairs and Communication and the Enterprise and Innovation Foundation, we will compile, structure and make all this information and guidance materials available in the business gateway," Laaster said.

She assured that this decision would not impose any obligations on businesses or taxpayers.

--

Follow ERR News on Facebook and Twitter and never miss an update!