This would reduce to a tenth of the current figure the number of Estonian companies obliged to compile these reports, Prime Minister Kristen Michal (Reform) said.

Speaking to "Aktuaalne kaamera," the prime minister said: "The reporting obligation will be reduced by 80 percent. It will only apply to the largest companies: Those with 1,000 or more employees, over €50 million in revenue, and more than €25 million in total assets. In Estonia, this means the number of affected companies would drop from 350 to 35."

Areas of reporting will be reduced too.

"Second, the number of reporting fields will also be cut, by 70 percent. This means that compiling these reports will become significantly easier. And third, for companies that do not fall under the reporting obligation this year, the requirement for the first report will be postponed to 2028," he added.

Estonia wants to make the reporting obligation voluntary even for large companies and plans to submit a corresponding proposal to the European Commission.

The prime minister explained. "Our proposal goes one step further. We propose to make the sustainability report voluntary. It can be completed by those companies for whom it brings business benefits or whose partners or business logic support it. And if that is not feasible, we will make a second proposal: that such a report should not be submitted annually, but periodically—for example, every three or five years."

At home, cutting bureaucracy has been a watchword with the new Reform-Eesti 200 coalition.

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