Paris based FINGREEN AI, an AI powered ESG and sustainability reporting platform, has confirmed that it will cease all operations following sweeping regulatory changes in Europe. The company says the European Union’s Omnibus Simplification Package has fundamentally reshaped the Corporate Sustainability Reporting Directive framework and eliminated the core market it was built to serve. As a result, its leadership concluded that the business model is no longer viable and that an orderly wind down is the only realistic path forward.
Company Origins and Mission
FINGREEN AI was created to help companies turn complex sustainability obligations into manageable, decision ready information. Its platform combined data infrastructure and artificial intelligence to support consultants and in house teams with ESG measurement, disclosure preparation, and project execution. The firm positioned itself as a technology partner that could reduce compliance costs while helping organizations extract strategic value from sustainability data.
Business Model Focused on Mid Market Firms
From the outset, FINGREEN AI targeted the large cohort of mid sized European companies, particularly those with fewer than 1,000 employees. These firms were originally expected to fall under the scope of the Corporate Sustainability Reporting Directive and were facing new, demanding disclosure obligations. According to the company, this segment represented the majority of its projected client base and underpinned its product roadmap and growth plans.
Omnibus Directive and CSRD Recalibration
The turning point came with the Omnibus Simplification Package, first proposed in February 2025 and adopted in April of the same year. The package raised the initial CSRD thresholds to companies with more than 1,000 employees and either at least EUR 50 million in turnover or EUR 25 million in total assets. It also pushed back mandatory reporting deadlines, postponing Wave 2 from 2026 to 2028 and Wave 3 from 2027 to 2029, which significantly delayed demand for compliance tools.
Market Contraction and Decision to Close
Subsequent negotiations in the European Parliament went even further, with a position that CSRD obligations should only apply to companies with over 1,750 employees and a net turnover above EUR 450 million. FINGREEN AI notes that this evolution means around 94 percent of the companies initially expected to report will now be exempt from mandatory requirements. The company argues that this dramatic contraction of the in scope market removed the central driver for its service and forced the decision to close.
Reflections on EU Sustainability Leadership
The company’s leadership has been outspoken about the broader consequences of the new direction. Chief executive and co founder Louis Frank has warned that Europe is moving backwards on sustainability by weakening one of the few areas where it had global leadership. In his view, sustainability could be a driver of competitiveness, but current regulatory adjustments undermine that potential and stall momentum toward transparent, comparable ESG data.
As FINGREEN AI prepares to shut down, it points to a legacy of enabling clients to streamline sustainability reporting, cut costs, and professionalize their ESG practices. The company highlights the work of its team, the support of investors, and the trust of partners and early customers as key achievements, even if the business will not continue. Its closure underscores how quickly regulatory recalibration can reshape entire market segments and leaves open the question of when, and under what rules, demand for advanced sustainability tools in Europe will return.