The Cumulative Effects of EU Sustainability Legislation (CEULA): Impacts on Finnish firms

The CEULA project assesses the cumulative effects of five EU sustainability regulatory instruments on large Finnish firms and their global value chains. It addresses the following issues: the cumulative impacts of the regulations on Finnish firms, firm preparedness for current and future regulations, and the feasibility of fulfilling obligations through a unified CSR management system. The analysis focuses on the Regulation on Deforestation-free Products, the Directive on Corporate Sustainability Due Diligence, the Carbon Border Adjustment Mechanism, the Regulation on Prohibiting Products Made with Forced Labour, and the Ecodesign for Sustainable Products Regulation, with case studies from the agri-food, forestry, mining and textiles sectors based on in-depth interviews with representatives of Finnish firms. Our findings indicate a divide between Finnish firms regarding preparedness and highlight challenges such as a reactive approach to sustainability, confusion regarding regulations, conflicting requirements and uncertainties about resource allocation. Well-prepared firms express confidence in their readiness but are concerned about supplier compliance. The report provides recommendations for both Finnish firms and authorities, emphasising the importance of collaboration within value chains, the establishment of cross-functional task forces, stakeholder engagement, clear communication and mechanisms for continuous improvement. The steps outlined aim to enhance actionable sustainability practices and provide clear guidance on navigating complex regulatory landscapes.