"The sustainability report is an initiative from years ago that doesn't align with our efforts to reduce reporting and regulations," Minister of Finance Jürgen Ligi (Reform) said Thursday. "Postponing it doesn't mean that parts of it aren't very reasonable or are opposed by all companies. Many companies still prepare such reports voluntarily, on principle — it gives consumers confidence and improves the company's market position."

The obligation for sustainability reporting will be postponed for those businesses for whom it would have applied to the 2025 and 2026 financial years. This affects around 300 Estonian companies: small and medium-sized enterprises (SMEs), insurers and smaller financial institutions.

Meanwhile, the obligation remains for large companies, which will be required to submit a report for the financial year beginning in 2024.

During the postponement period, the European Commission will review ways to simplify reporting requirements. In upcoming talks on the matter, Estonia will push to make report submission voluntary for companies — or, if that's not possible, to limit the frequency to no more than once every three years.

The Estonian Chamber of Commerce and Industry welcomes the two-year postponement of the requirement to prepare and submit sustainability reports.

According to chamber director general Mait Palts, this is a welcome development for businesses, significantly reducing their administrative burden.

"The government's decisive and swift action helps provide clarity and certainty, allowing companies to halt preparations for sustainability reporting for now," said Palts.

"We likewise hope for swift action from the Riigikogu, which should pass the law as a matter of urgency before Midsummer, giving businesses full certainty and allowing them to focus on their core work," he added.

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