Ministry of Finance proposes to reduce sustainability reporting burden for some companies
The Seimas, after the submission, started to consider the proposal of the Ministry of Finance to allow some companies to omit information on sustainability issues in their management reports during the transitional period. In this way, Lithuania would benefit from a provision in European Union (EU) law allowing to reduce the administrative burden of sustainability reporting for companies that will no longer be subject to such an obligation as of 2027.
“EU decisions allow Member States to reduce the administrative burden of sustainability reporting on companies during a transitional period. After consulting businesses, we have prepared a proposal to use this opportunity also in Lithuania, which would reduce the administrative burden and allow businesses to provide sustainability information flexibly", Minister of Finance K. Vaitiekūnas states.
In February 2025, the European Commission presented the Omnibus I package, which aims to significantly reduce the administrative burden on businesses while maintaining the objectives of the European Green Deal. One of the proposals in this package is the Directive revising certain corporate sustainability reporting and due diligence requirements adopted on 24 February 2026.
It is proposed to make use of the possibility provided for in this Directive to reduce sustainability reporting requirements for some companies during the transitional period. This would mean that for the management reports for the financial years 2025 and 2026, companies that will no longer be subject to this obligation from 2027 onwards could be exempted from providing sustainability information.
The changes would apply to listed companies, banks and insurance undertakings with between 500 and 1,000 employees or annual net sales of between EUR 50 million and EUR 450 million. According to the Ministry of Finance, there are currently 10 such companies in Lithuania.
Under the new Directive, only the largest companies or groups of companies – those with more than 1, 000 employees and annual net sales exceeding EUR 450 million – would be subject to the sustainability reporting requirement from 2027.
The Government requests that the draft laws be adopted as a matter of urgency at the spring session of the Seimas, taking into account that companies have to publish their annual reports within 4 months of the end of the financial year.
Taking into account the Government’s request, the draft laws will be considered and adopted under the urgency procedure during the Seimas spring session, as companies are required to publish their annual reports within four months of the end of the financial year.
Last updated: 24-03-2026
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