Baltic ESG survey 2025
How are Baltic businesses thinking about ESG?
Progressive companies across the Baltics aren’t swayed by short-term turbulence. They see ESG as a way to strengthen their business, manage risk, and stand out in a changing market. Sustinere’s latest survey reveals that shifting political narratives and economic pressures have not deterred those who understand that sustainability is a competitive advantage, not just a compliance burden.
Conducted in April 2025, the survey gathered insights from 115 companies across Estonia, Latvia, and Lithuania – a mix of Sustinere clients and other forward-looking organisations. Respondents included both large enterprises and SMEs, representing sectors such as manufacturing, energy, infrastructure, construction, transportation, services, and retail.
How do companies expect the importance of ESG to change in the coming years?
The survey confirms that ESG is not a passing trend. It is becoming part of how Baltic companies think about strategy and leadership.
Most respondents believe that sustainability will remain a business priority. Many see it growing in importance, even in a time of political shifts and economic pressure.
ESG is increasingly viewed as a tool for long-term resilience. Not just a regulatory task.
ESG importance is expected to increase
More than half of the respondents believe ESG will grow in significance over the next two years. Companies see sustainability as a rising strategic priority rather than a short-term obligation.
ESG importance will likely stay the same
A quarter of the surveyed companies anticipate that ESG will maintain its current level of relevance. This suggests that ESG has already become a steady element of business thinking for many.
Some companies expect ESG to lose relevance
A small minority believe ESG will decline in importance. These views remain uncommon and may reflect uncertainty or changing priorities in specific sectors.
Why are companies investing in ESG?
Alongside structured questions, companies were invited to explain why ESG matters to them. Their answers revealed more than regulatory awareness. Many are making deliberate choices that support long-term positioning, stakeholder trust, and operational clarity. Three insights stood out across the Baltics.
ESG strengthens Export readiness
Export-driven companies see ESG as a way to meet the expectations of international buyers and investors.
Sustainability practices are becoming a condition for access, not a bonus. ESG adds credibility and lowers friction when entering complex supply chains.
Strong ESG builds stronger Client relationships
Business customers expect transparency. Several companies highlighted ESG as a requirement for ongoing cooperation.
Without structured action, trust weakens. With it, partnerships grow more stable and future-proof.
Companies are moving from Metrics to Meaning
Data collection is no longer enough.
Many are shifting focus to operational improvements such as emissions planning, supply chain assessments, and internal engagement.
ESG is becoming a discipline that supports how companies evolve, not just how they report.
Why are companies taking ESG seriously?
We asked companies what drives their ESG focus today and in the near future. The answers reveal a blend of internal and external forces – from brand positioning to regulation and cost control.
Baltic businesses are not waiting for compliance deadlines. Many are acting out of strategic clarity and a need to remain credible in evolving markets.
Ability to attract and retain top talent
Companies see ESG as essential to strengthening their position in the job market. Reputation isn’t inherited - it’s built through action. For many, credible sustainability efforts are what tip the scale when skilled professionals choose where to work. This is especially relevant in high-impact industries.
Regulations
Policy changes are driving momentum. Businesses are preparing for new requirements not just to comply, but to stay ahead.
Cost efficiency
Respondents highlighted better resource use, process optimisation, and energy savings as practical outcomes of ESG initiatives.
Risk mitigation
From supply chain disruptions to reputational issues, companies see ESG as a framework for identifying and reducing business risk.
Market demand
B2B clients, consumers, and partners increasingly expect credible action. Meeting these expectations builds trust and relevance.
Product and service development
Many companies don’t set out to innovate when aligning with ESG - but innovation happens anyway. Shifting toward sustainability often uncovers overlooked inefficiencies or unmet needs. These improvements may seem secondary at first, yet they can evolve into standout features that influence buying decisions and deepen customer loyalty.
Investor and lender expectations
Many companies recognise that access to capital increasingly depends on transparent ESG performance.
Access to public funding
While not the top motivator, funding opportunities - national or EU-level - are helping justify and accelerate sustainability investments.
What ESG actions are companies committing to in the near future?
We asked companies to identify the ESG activities they plan to pursue over the next 1–2 years. The results show a shift from passive reporting to active implementation.
Across the Baltics, businesses are setting clear priorities. Not just to stay compliant, but to reduce impact, manage risk, and build long-term credibility.
Practical activities to reduce environmental impact
The most common action planned across the Baltics is reducing environmental impact through concrete measures. This marks a clear move beyond metrics. Many companies are shifting focus from abstract frameworks to operational change - tackling emissions, resource use, and environmental risks at the source.
Carbon Footprint Calculations
Companies want to understand where they stand. Carbon footprint assessments for operations, products, or services are becoming a foundational step. Many see this as the starting point for setting credible reduction goals.
Developing or Updating the ESG Strategy
More than three-quarters of respondents plan to build or refine their ESG strategy. This involves setting clear priorities, defining responsibilities, and integrating sustainability into core decision-making.
Practical Steps to Improve Social Impact or Governance
Respondents want to improve how they treat people and how they make decisions. This includes actions related to workplace practices, diversity, ethics, transparency, and accountability.
Strengthening Sustainability Positioning in the Market
Nearly half of the companies plan to communicate their sustainability more clearly to customers and partners. This includes labelling, certification, and other ways of showing credibility in the market.
How are Baltic companies responding to the CSRD?
The European Commission’s Omnibus proposal has changed the timeline and scope for CSRD reporting. Some companies gained more time. Others are reconsidering how and when to act. Despite this uncertainty, our survey shows that companies are not walking away from ESG reporting. Most are adapting their plans. Some continue voluntarily. Others are building systems to be ready when the time comes.
We identified three clear patterns in how companies are positioning themselves.
Companies want to act - but they need structure
“We need to review our metrics and build a strategy so that in two years we’re ready to report.”
There is strong intent to move forward, but many companies lack the internal systems to do it efficiently. They are not ignoring ESG. They just need time, clarity, and structure. Services like ESG strategy development or ESG Lead as-a-Service can help fill that gap, offering focused support until internal capacity catches up.
Companies are adapting - not stepping back
“We want to align our reporting with ESRS as much as possible, hopefully using the simplified version.”
The majority of companies are not abandoning reporting. They are adjusting it to fit their current capacity. The simplified standards introduced in the Omnibus proposal are making this more realistic.
Services like VSME+ reporting are helping companies apply ESG criteria in a way that matches their actual business needs and available resources.
Even those not reporting feel the pressure to act
“It’s harder to push ESG in the supply chain when the public message seems to say it doesn’t matter.”
Companies that are not formally subject to CSRD still face demands from buyers, export partners, and procurement systems. ESG expectations often come through supply chains rather than regulation. For exporters, especially in sectors like manufacturing or packaging, tools like Environmental Product Declarations (EPDs) are becoming essential for keeping access to international markets.
The strong keep going. They adapt smartly.
Sustinere’s ESG survey shows that forward-looking companies across the Baltics do not treat ESG as a formality. They see it as a practical tool that helps them manage uncertainty and respond to long-term shifts in the market. Even as reporting obligations pause or evolve, this has not slowed real ESG action. On the contrary, many businesses are now assessing their risks, opportunities, and impacts more broadly than before.
ESG supports stronger business. It reduces risk, improves supply chain stability, increases efficiency, and helps meet growing expectations.
This kind of practical, well-informed adaptability is what creates a real competitive edge. Not just on paper, but in day-to-day operations and long-term performance.
It's time to think big
Get in touch to talk about how forward-looking companies are using ESG to strengthen resilience and drive growth – and how your business can do the same.