Responsibility work is a well-founded decision from the point of view of financial sustainability. According to the study, the reporting of ESG (Environmental, Social, Governance) data, such as the company's own sustainability communications or external certification, is linked to the improved profitability of SMEs.
In this blog, we present a clear path to planning and starting responsibility reporting and how you can easily get started with it.
Responsibility is no longer just a matter for large companies. More micro and SMEs are discovering that customers, employees, financiers and partners expect concrete and transparent responsibility work. At the same time, the operating environment is constantly changing. The environmental crisis, tightening regulation and global megatrends are guiding companies towards more sustainable operating models. As called for in the publication of Sitra's megatrends 2026, Finnish companies are now required to be able to renew and create the conditions for a sustainable and vibrant future. Business built on sustainability is a key competitive factor in this change.
Starting responsibility reporting may seem like a big and even a bit scary step at first. The good news, however, is that you can get started without heavy processes or a complete system. It is enough to start with what is already being done. Even small acts of responsibility are meaningful.
At best, responsibility reporting serves as a tool for learning and development. It helps to perceive a company's everyday life in a new way, to identify concrete opportunities for improvement or development, and to make responsibility visible step by step. Everything doesn't have to be ready right away; the most important thing is to start.
Responsibility reporting refers to a company’s way of openly communicating how its operations affect the environment, people, and good governance - in other words, the ESG themes.
E – Environment covers climate impacts and the use of natural resources.
S – Social addresses employee rights, diversity, and social responsibility.
G – Governance refers to the transparency and ethical conduct of the company’s management.
Voluntary reporting can follow the framework of the VSME standard. This is aimed at micro and SMEs. Reporting enables the company to increase transparency and shows stakeholders that the company's operations are sustainable and responsible.
The Sustainability Reporting Directive CSRD does not apply to SMEs, but may also have a smaller impact on operators through supply chains. As large companies need information about their own supply chain, even smaller operators are increasingly asked for responsibility data. Therefore, it makes sense to start on time.
Responsibility work is a decision that affects the company's performance. One of the main reasons for starting responsibility work in SMEs is often the economic benefit. Research evidence supports this; a longitudinal study found that the publication of ESG data was associated with better profitability for SMEs. The impact was visible in both companies' own ESG communications (e.g. websites, reports) and external certifications. The results also suggest that a responsibility orientation can be particularly useful in times of uncertainty.
The development of responsibility is not just environmental and personnel actions, but it can steer the company's operations in a long-term direction that is financially sustainable. Well-selected financial indicators help demonstrate how sustainability supports profitability, cost efficiency and risk management. At the same time, they strengthen credibility in the eyes of customers and financiers. When responsibility is combined with goals and indicators, it becomes part of the company's daily life and decision-making as a tool for strategic management. Not a loose and "mandatory evil".
Reporting is more than just external communication. When impacts, risks and goals are recorded and data collection is started, responsibility becomes manageable and measurable. The collected data tells us where emissions are generated, where energy and materials are consumed, and where processes leak. The data can be used to achieve cost savings, for example in the use of energy and materials, and to reduce risks in supply chains.
More large companies and public organizations are asking their subcontractors for responsibility information. When a company has a clear responsibility report or an ESG summary compiled, collaboration and participation in competitive bidding are made easier.
Nearly 80% of companies surveyed by the Central Chamber of Commerce state that climate action has improved their competitiveness.
Accountability is an increasingly important factor in funding decisions. Clear and verifiable responsibility information can support the company's credibility in the eyes of financiers. A company reporting responsibility has better access to finance and support from the financial markets. In this case, you can benefit from green financial instruments or loans tied to ESG criteria.
1. Recognize the current state
Start with a simple assessment: What does the company already do from the point of view of the environment, personnel and good governance? What things are good? Where are the main areas of development? The assessment of the current state can be done, for example, with the help of the responsibility test.
2. Perform a materiality analysis, focus on the essential
The purpose of materiality analysis is to help clarify the company's responsibility work, identify key priorities (essential themes), and prioritize responsibility measures. The materiality analysis helps to identify the positive and negative impacts of the company's operations, stakeholder expectations, business risks and opportunities, and the responsibility themes worth reporting on. When a company focuses on the essentials, reporting remains light and useful.
3. Involved Stakeholders
Involve key stakeholders in impact, risk and opportunity assessment. You will gain valuable insight into what stakeholders value in your business. Involving stakeholders in materiality analysis is listening, interaction and long-term cooperation. Interactive engagement, such as workshops, forums, joint working groups and in-depth discussions, enables open dialogue and exchange of perspectives. Such an approach supports the quality and credibility of materiality analysis.
4. Objectives, indicators and data, the backbone of reporting
Make accountability a management tool. Choose the most relevant impacts for your business from a sustainability perspective. Once the relevant themes are clear, it is time to set goals for responsibility work, define measures and choose clear indicators. Decide what data will be collected and from which sources it will be obtained. Examples include energy consumption in kWh/year, employee well-being metrics, the number of security breaches, and recycling rates. An SME does not have to start putting together huge masses of data. A few clear indicators are enough to start with, which are linked to the everyday life and decision-making of the company.
5. The report can be light as long as it is open and verifiable
For a micro-enterprise, a table of goals, measures and indicators of one to two pages may suffice. A report that works for an SME is often 4-6 pages when it closely includes E, S, and G themes, objectives, measures, and indicators.
If you want to start quickly and in a practical way, you can download our guide “Opas vastuullisuusraportoinnin aloittamiseen” (in Finnish), which includes a process for developing responsibility work, clear instructions for step-by-step progress, examples from different industries, and work bases for preparing materiality analysis and reporting.
The contents of the guide have been compiled using the learning insights, experiences and feedback of the companies participating in the responsibility trainings of the VATUPASSI project.
Getting started in small steps is enough, and you don't have to complete everything at once. What is essential is not perfection, but openness and continuous development work. Responsibility work is a strategic opportunity to steer decision-making and operations in a sustainable direction, including foresight work and risk management. Learning realizations, recognition of opportunities and renewal are needed, constantly, in this ever-changing world.
Author: Jaana Jeminen, M.Sc. Econ (Management), Senior Service Designer, Project Manager, VATUPASSI Responsible Future -project, University of Oulu Kerttu Saalasti Institute, MicroENTRE Entrepreneurship Centre
Sources:
Momtaz, P. P. & Parra, I. M. (2025). Is sustainable entrepreneurship profitable? ESG disclosure and the financial performance of SMEs. Small Business Economics, 64, 1535-1564.
Corporate Sustainability Reporting, European Commission, 9 December 2025. Retrieved 20 January 2026.
Corporate Sustainability Reporting Directive (CSRD). Retrieved 20 January 2026.
Voluntary reporting standard for SMEs (VSME). Retrieved 20 January 2026.
Final Poll of the Climate Programme 2025, Central Chamber of Commerce. STT press release 31.12.2025.
These developments force Finland to renew, Sitra's megatrends 2026, STT press release 2 January 2026.
Sources
In Kerttu Saalasti Institute's blog we write about the topics of the Institute's research groups, micro entrepreneurship education and the Institute's general topics. The authors are researchers, experts and members of networks.
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