ESG reporting is becoming business-critical for SMEs – Ecovis Finland helps businesses navigate what comes next

Increasing expectations from customers, supply chains, financiers and procurement partners are pushing SMEs toward greater transparency—often before many companies fully understand what is required. At the same time, many businesses are facing a difficult question:

How do you respond to growing ESG expectations without creating unnecessary complexity?

Ecovis Finland recognised this challenge early and launched a cross-border project together with Ecovis partners in Germany, Italy and Spain, supported by Business Finland.


"The goal for us was clear: to better understand how ESG reporting is evolving across Europe and identify practical pathways that help SMEs prepare", explains Jaana Palomäki, CEO at Ecovis Finland Oy

The project has also brought together technology partners, including:

Entry Mapper (specialises in AI-powered research and strategy to assist in identifying and entering new European, LATAM, and MENA markets.
Adaptor (specialises in Microsoft Dynamics 365 Business Central implementations and consulting projects)
ImpactOS (specialises in sustainability data management)

Together, this group has explored how ESG reporting can become more practical, scalable and manageable for smaller businesses.

What have we learned?

The project identified several important findings:

1. ESG reporting expectations are expanding rapidly. Even companies not directly regulated are increasingly impacted through customers, supply chains and financing requirements.

2. Complexity remains the biggest barrier

Many current reporting models remain too heavy for SMEs.

3. Practical solutions are urgently needed

Businesses need clearer pathways, lighter reporting models and smarter use of existing business systems.

4. Technology can play a major role

Existing platforms can help make reporting significantly more manageable when built correctly.

"Rather than adding more complexity, the project has focused on helping SMEs better understand where the market is heading and what practical steps they can take now", continues Palomäki and reveals that the first project findings will be presented at the Ecovis EMEA meeting in Madrid in early May.



"For many SMEs, the question is no longer whether ESG reporting will become relevant. The real question is how prepared they are when it does", concludes Palomäki.