Forty per cent of large companies expect that they will have to change subcontractors due to Environmental, social and governance (ESG) obligations, according to a survey commissioned by OP Financial Group.
At the same time, large companies believe that the current US administration's negative attitude towards ESG matters strengthens the competitiveness of European companies, said OP in a press release on Thursday referring to the Survey of Large Corporations.
Almost half of large companies feel that sustainability reporting consumes so many resources that it reduces investment in concrete sustainability activities. A year earlier, only about a third experienced this.
"The EU is of course currently easing the requirements for sustainability reporting with the so-called Omnibus package. Considering that, the result is surprising, but it probably shows that large companies do not trust that the package will bring significant relief to the reporting burden," said Katja Keitaanniemi, Chief Executive Officer of OP Corporate Bank.
ESG obligations are also concretely visible in the subcontracting chains of large companies and 40 per cent of large companies expect that they will have to change subcontractors or suppliers in the near future due to ESG requirements.
About half of the companies planning to change their subcontractors estimate that the changes will target Finnish SMEs.
"ESG requirements are increasingly extending to the entire value chain of large companies. Therefore, pressure is also placed on SMEs that operate as subcontractors and suppliers to large companies. Corporate responsibility work is becoming an even more central part of the competitiveness of SMEs," Keitaanniemi said.
ESG regulations increase pressure on large companies to reform their own processes, but also offer an opportunity to build a competitive advantage.
Almost half of large companies assess that the Donald Trump administration's critical take on ESG matters will strengthen the competitiveness and position of European companies, for example in the green and clean transition markets.
"The United States' negative attitude towards ESG regulations may temporarily ease the burden on companies there, but the conditions for sustainable growth are built through long-term corporate responsibility work. European and Finnish companies now have the opportunity to take the lead and show the way," Keitaanniemi added.
A total of 155 senior executives representing 139 large Finnish corporations and large subsidiaries operating in Finland responded to the survey. According to their latest certified financial statements, the responding companies have a combined revenue of over 248 billion euros, and they employ over 585,000 people in total. The survey was conducted in autumn 2025. OP Pohjola carried out the survey in partnership with the Nordic Institute of Business and Society (NIBS) think tank founded by Aalto University professors.
- Large companies
- ESG obligations
- OP
Source: www.dailyfinland.fi
