Navigating regulatory complexity: Developing case company’s ESG preparedness under evolving sustainability reporting requirements

Evolving sustainability regulations in the European Union pose significant challenges for companies, particularly small and medium-sized enterprises (SMEs), seeking to remain proactive and compliant. Although the difficulties associated with monitoring, interpreting, and operationalizing sustainability regulations are increasingly acknowledged, managerial support for navigating these requirements remain relatively underexplored, limiting SMEs’ preparedness for regulatory change. Drawing on a theoretical framework and best practices identified in the literature and expert interviews, this study explores managerial responses to growing sustainability-related pressures through a qualitative case study. This thesis adopts a single-case study approach to support the case company in developing its ESG preparedness. The study highlights the importance of internal sustainability expertise, top management involvement, regulatory monitoring and compliance processes, robust data systems, and peer support in navigating the evolving regulatory landscape. Using a gap analysis, the study provides actionable recommendations for the case company across these dimensions. In addition, the empirical findings contribute to the refinement of the proposed theoretical framework, thereby advancing both managerial understanding and theoretical development in this area.