French company FINGREEN AI, an AI-powered ESG platform, is shutting down all operations due to recent regulatory alters from the European Union.
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Paris-based FINGREEN AI, an AI-powered ESG platform assisting consultants and companies streamline sustainability reporting projects, has announced that it is shutting down all operations due to recent regulatory alters from the European Union.
“I sincerely hope the European Union will soon recognise that sustainability can be a powerful driver of competitiveness — even if the current regulatory direction clearly works against that and undermines the one domain where Europe has established itself as a true global leader and pioneer,” states Louis Frank, CEO and co-founder of FINGREEN AI.
The company’s decision stems from the Omnibus Simplification Package, which has significantly alterd the rules for sustainability reporting, creating its business model no longer viable.
Established to assist mid-sized EU companies
Originally, FINGREEN AI aimed to assist mid-sized EU companies, particularly those with fewer than 1,000 employees, that had to comply with the Corporate Sustainability Reporting Directive (CSRD).
The company developed a platform to assist these businesses meet compliance requirements, measure their environmental impact, and prepare for mandatory reporting.
However, the tarobtain audience for FINGREEN AI’s services is now excluded from the mandate for sustainability reporting.
A key reason is that new regulations have raised the threshold for who must comply, limiting it to larger companies with over 1,000 employees and significant revenue or asset thresholds.
As a result, the potential client base for FINGREEN AI has dramatically decreased.
“The core challenge is that this tarobtain segment, which represented most of our projected client base, has now fallen out of the scope of mandatory compliance, reshifting the market driver for our service,” states the company.
The Omnibus Directive, proposed in February 2025 and adopted in April of the same year, introduced significant alters.
- Initial Threshold Increase: The scope of mandatory CSRD application was first raised to companies exceeding 1,000 employees and a minimum of €50M in turnover or €25M in total assets. This single measure instantly reduced the in-scope entities from an estimated 50,000 to 10,000.
- Delayed Deadlines: Mandatory reporting for Wave 2 companies was postponed from 2026 to 2028, and Wave 3 from 2027 to 2029.
The European Parliament’s recent discussions further highlight that only companies with more than 1,750 employees and a net turnover exceeding €450M will be required to follow these sustainability reporting rules.
This shift means that about 94 per cent of the companies initially expected to report under the CSRD will now be exempt.
“Europe is taking a massive step backwards and slowing momentum in the global transition to sustainable business practices, one of the rare subjects it was at the forefront of,” states the company.
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