Advancing sustainable and responsible growth of SMEs in Central Finland through Comprehensive sustainable reporting

The European Union has introduced a lot of new legislation aimed at promoting the green transition. As part of the 2025 financial statements, large and listed companies must prepare a comprehensive sustainability report (ESG reporting), which covers their entire value chain. For their report, large companies need sustainability information from all actors in their value chain. This means that if SMEs operate or want to operate in the company's subcontracting networks, they must have the competence and ability to produce this information. 

In the study of Confederation of Finnish Industries (2023), it was found that companies face significant challenges in responsibility reporting, which impacts their financial opportunities and to get in the supply chains of the large companies. The survey of OP Financial Group (2024) revealed that over half of large companies of respondent companies have had to change subcontractors or suppliers due to responsibility obligations. Therefore, it is essential for the competitiveness of SMEs, gain skills to provide sustainability reports. 

The VAHVA project was designed with the objective of empowering SMEs in Central Finland's bioeconomy, industry, and logistics sectors. The goal is to enable these SMEs to provide the necessary ESG reporting information to their customers and partners, who are either obligated to report or are part of the reporting entities' value chains. The sectors were selected as target groups for the project because there are many actors in these sectors in the area who are, or would like to be involved in, the value chains of large companies.

The project improved companies' awareness of reporting requirements through information sessions and media cooperation. Sustainability reporting capability is improved by piloting various models, methods and tools that promote sustainability reporting in clinics. At the same time, companies also get to network and discuss with each other and with experts. The project produces up-to-date information on reporting, answers to questions that concern companies in sustainability reporting and information on tools related to sustainability reporting on the YmpyräKS-website. These results can also be utilized on the site after the project has ended.

The VAHVA measures were planned and implemented in cooperation with Central Finland's business and YmpyräKS network operators. The project is a good opportunity for municipal business operators to develop their own competence related to responsibility and sustainability reporting and to network with companies and RDI operators.

The VAHVA project promoted the requirements of the Central Finland transition plan by improving the overall sustainability of SMEs operating in Central Finland and the vitality of the area by renewing entrepreneurship and promoting competitiveness. It strengthens the readiness of SMEs to build responsible, sustainable, and profitable business. When companies know the impact of their own operations on the environment, it is easier for them to identify measures to achieve the carbon neutrality target. At best, sustainability reporting capability expands the markets of SMEs and increases domestic and international growth opportunities. Sustainability reporting also helps companies identify ways to improve their social responsibility, such as promoting equality and equality in communities.

The project responds to the strategy of Central Finland and the objectives of smart specialization, especially the spearheads of bio and circular economy and renewing industry. The project also promotes the construction of a carbon-neutral province. In addition, it supports the objectives of the EU's Baltic Sea Region Strategy, e.g. by promoting sustainable development and green growth in the region. The project follows the Do No Significant Harm (DNSH) principle and the UN's sustainable development goals.

Further information: 

Kirsi Knuuttila, first name.family name@jamk.fi, +358 (0)40 776 8880

Marita Valkonen, first name.family name@jamk.fi, +358 (0)50 568 9616