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Dorothée Cambou, Martin Fougère, Heidi Herlin, Neema Komba,
Amin Maghsoudi, Mikko Rajavuori, Elina Sagne-Ollikainen,
Juho Saloranta, Nikodemus Solitander, published by the Ministry of Foreign Affairs for Finland
Finland: EU regulatory uncertainty is among biggest concerns for Finnish companies, study on EU sustainability regulations finds
"How do EU sustainability regulations affect Finnish companies?", 28 February 2025
There are significant differences in how prepared Finnish companies are to comply with EU regulations on corporate responsibility. This is shown by a new study conducted by several Hanken researchers, among others, on behalf of the Ministry for Foreign Affairs.
By interviewing Finnish companies in the agri-food, forestry, mining, and textile sectors, the researchers have identified several challenges. These include a reactive approach to sustainability, confusion regarding regulations, conflicting requirements and uncertainties about resource allocation.
– The study clearly shows that among the biggest concern for Finnish companies is not overregulation, competitiveness, or GDP, but the uncertainty created by the EU. This includes the risk that important goals within the EU's Green Deal and the green transition may be lost. If companies cannot rely on long-term strategies, there is a risk that they will continue with a reactive sustainability strategy, which is already a major problem, says principal investigator Nikodemus Solitander from Hanken School of Economics.
According to the report, well-prepared firms express confidence in their readiness but are concerned about their suppliers' ability to meet the regulatory requirements.
– To improve sustainability practices and navigate the EU's complex regulatory landscape, we recommend, among other things, more collaboration within value chains, the establishment of cross-functional task forces, and clearer communication, says Solitander...
The study specifically analyses the following regulations: the Regulation on Deforestation-free Products (EUDR), the Directive on Corporate Sustainability Due Diligence (CSDDD), the Carbon Border Adjustment Mechanism (CBAM), the Regulation on Prohibiting Products Made with Forced Labour (FLR, and the Ecodesign for Sustainable Products Regulation (ESPR).
Finnish companies face varying levels of preparedness for EU sustainability regulations, with a key challenge including regulatory uncertainty created by the EU, a new study finds.
The EU Parliament approved a one-year delay for companies to comply with the deforestation regulation, now set to apply from December 2025 for large operators and June 2026 for small businesses.
The new guide by Forest Peoples Programme outlines how indigenous and forest peoples can use the EU Deforestation Regulation and the Corporate Sustainability Due Diligence Directive to address corporate-linked human rights violations and environmental harm.
The EU Parliament has sent the EUDR back to the committee for interinstitutional trilogue negotiations to grant companies an additional year for implementation.
Nestlé, Ferrero, Unilever and Mars have joined calls by other food and drink manufacturers in opposing the European Union’s delay to deforestation laws.
The Cocoa Coalition, comprising companies and civil society organizations, supports the EU Deforestation Regulation (EUDR) and urges swift adoption of the delayed implementation without reopening negotiations, while also calling for support to smallholder farmers for compliance.
Friends of the Earth Europe and 225 organizations urge the EU to reject a proposal delaying the EU Deforestation Regulation, emphasising its importance in combating deforestation and supporting human rights.
The EU's anti-deforestation regulation faces criticism for potentially allowing major deforestation contributors to avoid being classified as "high risk," which could weaken the regulation's effectiveness.
The article argues that the EU's anti-deforestation law should prioritize input from frontline communities, as governments in Malaysia and Indonesia are undermining Indigenous rights and providing unreliable forest data.
New analysis by Earthsight reveals European consumers have been buying beef and leather from firms linked to illegalities in the Brazilian Amazon uncovered by the Environmental Investigation Agency. According to Earthsight this serves as a reminder that without the EU Deforestation Regulation, European consumption will continue to drive deforestation and rights abuses overseas.
The companies consider it important that the European Union adopts a robust law that minimises the risk of conversion and degradation of natural ecosystems (alongside deforestation and the degradation of natural forests) as well as human rights violations, associated with commodities and products placed on the EU market.
A delegation of indigenous, human rights, and environmental organisations published a statement urging the European Commission to include independent civil society groups in ongoing key talks with Malaysia and Indonesia over its anti-deforestation rules.
Companies – and the EU Competent Authorities that have the responsibility of implementing the law - now have 18 months to prepare before the law comes into action, at the end of 2024.
While the law is a historic first, it fails to include strong provisions to protect the land rights of Indigenous Peoples and local communities, who time and time again have proven to be the best guardians of the forests, says NGO Fern.
EU legislators reached political agreement in the early hours of Tuesday, 6 December, to pass a new law to ensure products on the EU market are not linked to the destruction or degradation of forests. WWF and Greenpeace welcome the law as breakthrough but also point to some of its weaknesses.
Negotiations between the Commission, Parliament and Council are set to finalise next week. One crucial provision of the draft law currently being targeted by certain EU member states, is the protection of the rights of indigenous peoples and local communities.
A delegation of MEPs will now take the Parliament's position to negotiations with the EU Member States, who agreed a range of changes in the EU Council in June to weaken key elements of the proposed law.
Measures would oblige banks to conduct due diligence to prevent the financing of deforestation, boost protections for indigenous communities, and add rubber and leather to the list of imported products that would be screened for deforestation links.
The Council adopted its negotiating position (general approach) on a proposal to limit the consumption of products contributing to deforestation or forest degradation.
Almost all plantations linked to deforestation are currently owned by just three multinational companies, which together have made deals worth billions of euros with European banks.
Indonesian civil society groups call for the EU proposal to be strengthened by including SMEs, a complaint mechanism, and by considering the impact on small holders, indigenous groups and communities
Lessons from the implementation of the EU Timber Regulation show that Member States’ Competent Authorities often fail to meaningfully implement and enforce the law in practice, argues Earthsight
Some EU member states want more time to implement the upcoming anti-deforestation law, which includes due-diligence obligations, citing concerns about the administrative burden that SMEs might face.
The undersigned organisations, welcome the European Commission’s proposal for a new EU regulation on deforestation-free products. It is now up to the European Parliament and Member States to preserve and improve the essential elements of the Commission’s proposal and deliver a strong and ambitious law.
Civil society organisations and representatives of Indigenous communities all over the world call on the EU to require businesses to respect land rights in anti-deforestation rules
Cameroonian activists rallied in front of the EU delegation in Yaoundé to demand the block to cease support for rubber linked to deforestation, and to call for an ambitious EU legislation on forest commodities
The fate of the proposals on (i) minimising the risk of deforestation and forest degradation associated with products placed on the EU market and (ii) sustainable corporate governance is now unclear, raising concerns among civil society.
The organisations call on the EU to ensure that its upcoming legislative measures are effective and fully uphold their rights as set out in international law, and in line with the EU’s own commitments.
In a joint statement, over 360 CSOs from 53 countries strongly criticise Omnibus proposal and urge the Council of the EU and the European Parliament to reject any amendments that weaken the CSDDD.
In a statement, small and medium-sized German enterprises (SMEs) call for an adjustment of the Supply Chain Act to align with the European regulations adopted in 2024, ensuring legal certainty, avoiding unnecessary burdens, and effectively implementing human rights and environmental protection.
Experts from ShareAction, WWF European Policy Office, the European Coalition for Corporate Justice, the World Benchmarking Alliance and Frank Bold shared their views on the European Commission’s Omnibus proposal during a webinar co-organised by these organisations.
In their initial reflection, Shift analyses that the European Commission’s Omnibus Simplification Proposal risks undermining effective risk-based sustainability due diligence and reporting by complicating company efforts, increasing burdens on SMEs, and weakening transparency despite international standards providing clear and practical guidance for meaningful action.
The Danish Institute for Human Rights is concerned about the Omnibus-proposal made by the European Commission, as the proposed changes risk undermining the ability of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) to meaningfully address the challenges of environmental degradation, climate change, and respect for human rights.
WWF argues in their press release that the Commission’s Omnibus proposal undermines key EU sustainability laws, threatening the Green Deal and creating regulatory uncertainty.
CSRD is key to improving access to ESG data, according to the EU banking regulator. The lack of data standardisation and comparability could present challenges to banks.
Kalpona Akter, a labour activist from Bangladesh, criticises the EU's upcoming Omnibus proposal, labelling it as corporate-driven deregulation that weakens the Corporate Sustainability Due Diligence Directive. She argues that the proposal favours big businesses over workers' rights and jeopardises hard-won protections in global supply chains.
In their analysis, SOMO found that the financial cost of complying with the CSDDD – as estimated by the European Commission – would represent only 0.13 per cent of the average shareholder payouts made in 2023.
The UN Global Compact, the world’s largest corporate sustainability initiative, reiterated its support for a mandatory due diligence framework that aligns with international standards.
The EU Commission's proposed reforms to sustainability reporting and due diligence are being criticised as deregulation that weakens climate and human rights protections, reduces corporate accountability, and limits investors' access to reliable sustainability data.
Some major companies like Nestlé, Unilever, and Signify oppose the European Commission's plan to weaken newly introduced green regulations, arguing that it threatens sustainability efforts, legal certainty, and a level playing field.
In their statement, ECCJ argues that the leaked draft Omnibus proposal severely weakens the EU’s corporate sustainability framework and firmly reject the proposal.
The letter from 14 companies and industry associations, including Nestlé, Ferrero, MARS, Primark and Ingka Group | IKEA, says: "Investment and competitiveness are founded on policy certainty and legal predictability. The announcement that the European Commission will bring forward an “omnibus” initiative that could include revisiting existing legislation risks undermining both of these."
In a letter to the European Commission, the GRI urge the EU not to drop the principle of double materiality claiming it is essential for effective sustainability reporting, ensuring companies manage financial risks while also addressing their broader impacts on the environment, people, and the economy.
Global South organisations warn that the EU will fail workers and the environment globally if it weakens or delays the Corporate Sustainability Due Diligence Directive (CSDDD), urging full implementation of the law to uphold human rights and environmental standards.
Human Level has published this briefing note for companies operating in the EU subject to the EU Corporate Sustainability Due Diligence Directive (CSDDD), highlighting the business risks associated with re-opening Level 1 of the directive.
In an open letter to the European Commission, legal scholars expressed concern that a potential reopening Article 22 CSDDD could weaken corporate climate obligations, increase litigation risks, and create regulatory fragmentation.
In a statement, the UN Working Group on Business and Human Rights encourages the EU not to reopen the CSDDD text, emphasising legal certainty, alignment with the UNGPs, and the importance of transparency and stakeholder engagement.
Dutch businesses urge the EU to uphold and implement the CSRD, CSDDD, and Taxonomy as planned, emphasising the need for legal certainty, a level playing field, and the benefits of strong sustainability regulations.
CSOs argue that the EU must reject calls for corporate-driven deregulation and uphold sustainability laws to protect people, the planet, and small businesses from exploitation.
Finnish CSOs and companies urge the European Commission to avoid renegotiating agreed sustainability due diligence rules, emphasising the need for certainty, timely transposition, and clear guidance.
150+ civil society stakeholders have requested in a joint letter that the European Commission does not create further confusion and uncertainty through re-opening agreed legislative texts. The letter also criticises the way in which the Omnibus process has proceeded.
240 European researchers, mainly economists, have issued an open letter warning of the dangers of the ‘Omnibus’ initiative being prepared by the European Commission.
Frank Bold's analysis examines the positions on the Omnibus proposal, specifically the CSRD and CSDDD, from certain ministries and authorities in Germany and France.
Investors with a combined €6.6 trillion in assets under management have urged the European Commission to “preserve the integrity and ambition” of the EU’s sustainable finance framework.
In their commentary, Heidi Hautala and the Resource Centre's Director Phil Bloomer argue that Europe must resist deregulation pressures and maintain strong ESG standards to uphold public trust, protect rights, and ensure legal certainty for businesses.
Signatories request President von der Leyen and Commissioner Dombrovskis to "respect the principles of democratic decision-making enshrined in the Treaty on European Union, which are so important to the credibility, mandate and public trust in the EU institutions."
Alexander Burr, ESG policy lead at Legal and General Investment Management, told Bloomberg that rolling back the rules “could risk our ability to understand ESG or sustainability-related risks.” The statement has also been covered by other outlets including Forbes and FT SustainableViews.
The European Commission announced plans to streamline business regulations to boost innovation. CSOs have criticised this Competitiveness Compass, arguing that it steers Europe in the wrong direction.
The European Commission is convening a roundtable with major corporations, particularly from the financial and energy sectors, and civil society groups to discuss revisions to the upcoming Omnibus proposal.
Finnish companies face varying levels of preparedness for EU sustainability regulations, with a key challenge including regulatory uncertainty created by the EU, a new study finds.
Ten European National Human Rights Institutions (NHRIs) expressed concerns in an open letter that the EU’s Omnibus proposal could undermine progress on corporate sustainability and create uncertainty for companies.
Transition plans should be “a single, comprehensive strategic planning process that covers all regulatory requirements stemming from applicable legislation” such as the corporate sustainability reporting directive and corporate sustainability due diligence directive (CSDDD), EBA's new guidelines state.
CSOs criticise France’s push for an indefinite delay of EU legislation, including CSRD and CSDDD, warning it could undermine social and environmental justice despite the country’s prior support for the legislation.
In light of the European Commission's announcement of an 'Omnibus Simplification Package’ , a group of business and human rights experts from legal practice, consulting, academia and the business world have expressed their grave concerns regarding the approch in a letter to the Commission.
In light of the discussions around an ‘Omnibus’ law, companies like Nestlé, Mars, Mondelez, Ferrero, Hershey and Tony’s Chocolonely, as well as other chocolate sector actors, urge the European Commission to not modify any elements of the CSDDD, nor to reopen it for renegotiation by the co-legislators, but to focus on guidance and support for its implementation.
170 civil society groups, human rights and environmental defenders, trade unions and climate activists have published a joint statement "saying no" to the 'Omnibus' proposal announced by EU Commission President von der Leyen to amend three key legislative pillars of the European Green Deal: the CSDDD, the CSRD and Taxonomy Regulation
The due diligence approach allows human rights and environmental risks to be assessed in a contextualized manner. Behind what is criticized as a “bureaucratic” approach, there is therefore far-reaching trust in companies, the authors argue.
Some of France’s largest companies, including Amundi SA and Electricite de France SA, have signed a letter to European policymakers urging them to ensure the bloc sticks with its current timetable for implementing ESG reporting rules.
The paper explores how the Corporate Sustainability Due Diligence Directive could promote responsible business practices in Sub-Saharan Africa, with examples of the impact on three commodities– cotton, cocoa, and copper supply chains– and provides an action plan for African policymakers.
The 2024 Danish Institute for Human Rights benchmark assesses the human rights policies and due diligence practices of 30 major Danish companies, measuring their alignment with global standards and contributing to discussions on responsible business conduct and the impact of upcoming EU regulations.
A new report by the EIRIS Foundation, applying its Social LobbyMap methodology, examines and highlights the role of private sector influence in the exclusion of financial sector downstream value chain activities from the scope of the EU Corporate Sustainability Due Diligence Directive (CSDDD).
The ECCJ, in collaboration with 8 other CSOs, published a Transposition Guide for the Corporate Sustainability Due Diligence Directive (CSDDD). This essential guide provides key insights and recommendations for the upcoming transposition phase of this EU directive.
The ActionAid report highlights the need for a gender-responsive approach to the CSDDD, emphasizing the importance of addressing gender inequality, women’s rights, and protections for marginalized groups disproportionately affected by corporate abuses.
The report outlines recommendations for governments and companies to enhance corporate human rights performance through robust regulatory frameworks and collaborative efforts.
The study by the British Institute of International and Comparative Law provides reflections on changes in corporate practice resulting from the implementation of HREDD laws, namely the French DVL and German LkSG, and a comparative analysis of these legal models.
Anti-Slavery International's analysis of the EU CSDDD aims to empower civil society organisations to advocate for its effective implementation, address remaining gaps, and promote fair treatment of workers by businesses.
Trade unions are pushing for stronger human rights protections in the base metals sector, emphasising the role of HRDD frameworks and the CSDDD in improving worker conditions and holding companies accountable.
In its report, UNICEF provides its recommendations to the EU Institutions, EU Member States, and businesses on how to effectively implement the CSDDD for children’s rights.
The particular format of the sector dialogues has had some positive results, but on balance the overall result for civil society is rather patchy – this is the conclusion NGOs participating in those sector dialogues present in a new background paper. Attempts by companies to depict their activities in sector dialogues as stakeholder engagement must be viewed in a critical light against the background of the CSDDD and the German Supply Chain Act.
The guide provides an in-depth analysis of the CS3D Directive, offering recommendations for its transposition into national laws to ensure strong environmental protection while encouraging alignment with international standards and supporting lawmakers, public authorities, and companies in understanding and implementing its provisions.
Non-exhaustive examples showing how questions of effectiveness, current supply network/value chain complexity, and feasibility for companies have been addressed by the Corporate Sustainability Due Diligence Directive (CSDDD).
The guide provides practical guidance on how to engage with policymakers through the transposition of the Corporate Sustainability Due Diligence Directive to advocate for alignment with the UN Guiding Principles on Business and Human Rights and other international business and human rights standards.
The new blog by BSR says that financial institutions should proactively align with the CSDDD by assessing management gaps, enhancing collaboration, mapping value chains, identifying stakeholders, and developing a roadmap based on international due diligence standards.
Swedwatch views the CSDDD as a positive, long-awaited step towards corporate accountability but urges the Swedish government to strengthen the law during transposition, particularly by addressing gaps in company scope, downstream due diligence, and enforcement.
More than 100 large companies, SMEs and networks including Maersk, Aldi Süd Holding, Cisco, Nokia, H&M Group, Scania and Ritter Sport have united to endorse the Corporate Sustainability Due Diligence Directive (CSDDD) again at the stage of final formal confirmation.
