The Trump administration's sustainability policies can strengthen the competitiveness of European companies
Forty per cent of large companies expect that they will have to change subcontractors due to ESG obligations, according to OP Pohjola's Survey of Large Corporations. At the same time, large companies believe that the current US administration's negative attitude towards ESG matters strengthens the competitiveness of European companies.
Almost half of large companies feel that sustainability reporting consumes so many resources that it reduces investment in concrete sustainability activities, according to OP Pohjola's recent Survey of Large Corporations. 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," says Katja Keitaanniemi, CEO of OP Corporate Bank.
ESG obligations are also concretely visible in the subcontracting chains of large companies: 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 points out.
The US's critical take on sustainability can strengthen the competitiveness of European companies
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," says Keitaanniemi.