Tuomo Riihentupa
Tuomo serves as Cloud1's Chief Business Officer and is responsible for our operations and ensuring that our solutions deliver tangible business value to our clients.
ESG and the related reporting is more relevant than ever, as companies are expected to be increasingly transparent about their relationship with the environment and society. ESG reporting serves as a means to track and communicate sustainability actions to customers, investors, and employees alike. Cloud1's Chief Business Officer, Tuomo Riihentupa, shares how we are driving sustainability forward.
ESG (Environmental, Social, and Governance) became a major topic at the turn of the decade, fueled by concerns over climate change, rising expectations from consumers and investors, and the political momentum surrounding sustainability. The COVID-19 pandemic only intensified the conversation.
At Cloud1, we started our own discussions on company values around that time, drafting the first versions of our operational principles. Many of our ESG practices were already in place, even if we used different terminology back then.
In 2023, ESG became a formal part of our strategy with the arrival of our private equity partner, Voland Partners. As transparency expectations in the investor market increased, we embraced a more structured approach. Today, our annually chosen focus areas drive continuous improvements, making sustainability a natural part of how we operate.
ESG: A Growing Priority for our Customers
We haven’t navigated the ESG journey alone—2024 marked our first experiences with customer-led ESG audits. To date, Cloud1 has completed two formal audits and one ESG assessment via the EcoVadis platform.
The experience has been positive. The audits were conducted in a constructive spirit, fostering mutual learning. In fact, some auditors have even noted that they plan to adopt Cloud1’s best practices within their own organizations.
These evaluations confirmed that we meet, and often exceed, the baseline standards across all assessed areas. While we haven’t made any dramatic ESG leaps, we are progressing in the right direction.
Our expectations were clear from the start: the focus wasn’t on overachieving but on demonstrating commitment and consistency. While each audit had its own emphasis, the objectives were always well-defined. Our customers know what they need, their requirements are both justified and practical, and the audits have provided us with valuable, concrete recommendations for continuous improvement.
The following topics have been consistently highlighted in our ESG audits:
- Responsible management of the supply chain – A top priority across all audits, indicating its broad significance in our customer base.
- Effective feedback channels for employees and anonymous whistleblowing mechanisms – Ensuring a safe and transparent workplace culture.
- Cloud1 as a socially responsible player – Including our role in promoting a more balanced gender representation in the IT industry.
- Accountability and transparency in leadership and decision-making – Strengthening trust both internally and externally.
- Commitment to emissions reduction and circular economy initiatives – A clear expectation for sustainable business practices.
These audits have also opened my eyes to societal issues I hadn’t previously been aware of. When a customer asks about child labor policies, it may seem distant in a Finnish context—until they point out that it does, in fact, occur in certain industries even here. Working with ESG forces us to confront and clarify our stance on what responsible corporate behavior truly means.
"What does ESG mean for you?"
I’ve sometimes been asked why we don’t aim for a universally applicable ESG compliance model. The answer comes down to two key reasons:
- Diverse customer requirements – A single standard may not even be feasible.
- A broad, generic approach wouldn't necessarily serve its purpose.
The challenges tackled under the ESG umbrella vary in scope and significance across our customers. Each company approaches sustainability from its own business-driven perspective, focusing on the areas where they can create the greatest impact. We can’t define what ESG should mean for them—we can only help them achieve their goals.
Adding to the complexity, ESG terminology is often open to interpretation, and priorities differ widely. Even within our own organization, perspectives on what matters most can vary significantly.
Some stakeholders push for bold climate action, while others prioritize business stability and continuity. For some, ESG is primarily about employee well-being, while for others, it’s about broader social responsibility and equality. Governance—the “G” in ESG—rarely sparks passionate debate, yet it remains a fundamental pillar we cannot overlook.
The Challenge is to Combine Expectations with Opinions
ESG work naturally comes with a wide range of expectations, demands, and passions—from customers, the board, and employees alike. Balancing these perspectives can sometimes lead to frustration and a sense of inadequacy across the organization—even at the leadership level.
Choosing where to focus, whether on supply chain management or employee well-being, is never easy and often has long-term implications.
At its core, ESG is about the desire to do the right thing—for people and the planet. I believe this is intrinsic to most of us, even if we’ve never encountered the term before. When discussing ESG, it’s essential to remember that what truly matters are concrete actions—their volume and impact on our operating environment.
ESG is not a destination but an ongoing journey—one we go on together with our customers. Their goals are not just requirements for us to meet; they also serve as valuable milestones for shaping our own path.
Read more on sustainability reporting: Leading Sustainability Reporting in 2024
Let's continue the discussion on sustainability and ESG-reporting! Contact us