This February the EU Commission announced a new package of proposals, brought together in an ‘Omnibus’, simplifying their regulations on sustainability and ESG.
The proposals intend to reduce the current reporting requirements and scope of the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy.
ESG regulations being scaled back might make it feel like companies no longer need to report, but it’s important to remember these changes are not yet final: debates, amendments, and national transpositions are expected to be operational within the next 12 months.
Businesses should prepare for this uncertainty while maintaining their focus on ESG reporting, as even if they don’t have to report now, they will in the future. While the Omnibus gives companies more time to prepare themselves, compliance is still ever-present on the horizon.
What’s happening with the Omnibus?
The ‘Omnibus’ is packaging together several proposals in a number of legislative fields, including EU Taxonomy, CSRD, CSDDD, sustainability due diligence, and sustainable finance reporting.
The European Commission’s stated aims with the proposals are to “simplify EU rules and boost competitiveness, and unlock additional investment capacity”.
This first package is said by the EU Commission to cover steps to:
- Make sustainability reporting more accessible and efficient
- Simplify due diligence to support responsible business practices
- Strengthen the carbon border adjustment mechanism for a fairer trade
- Unlock opportunities in European investment programmes
Why should Companies continue to report?
While the Omnibus means that the pressure to be ready to report is off, some are beginning to rethink ESG’s place on the global agenda. With the continuing threat of climate change, and the impact of companies on the environment and society around them ever growing, it’s important to consider this proposal by the EU Commission as some breathing room, not as a sign to stop.
Beyond just the obvious environmental factors, ESG reporting is a crucial way for businesses to stay ahead, and turn ESG into a competitive advantage in an increasingly competitive market. So, why should you continue on your ESG reporting journey?
Future-Proof Compliance & Mitigate Regulatory Risks
Regulations are fluid and may return, the Omnibus proposal is not final, and national governments can still reinstate stricter ESG rules. Companies that pause ESG reporting risk scrambling later to catch up.
Proactive ESG strategy also means lower risk exposure, even beyond the CSRD, sustainability regulations will continue evolving. Staying prepared helps mitigate future fines, reputational damage, and compliance disruptions.
Many voluntary ESG standards (ISSB, GRI, TCFD) are already widely adopted, so by being proactive now it means a smoother adaptation later when regulations shift again.
ESG Compliance Extends Beyond CSRD
Companies must still comply with national ESG regulations (e.g., DPEF in France, EINF in Spain, Societa Benefits in Italy), so it is not just about this one specific directive being scaled back.
Companies operating outside the EU still face ESG demands. There will be many global investors, customers, and suppliers that require sustainability disclosures, regardless of any CSRD adjustments.
Supply Chain & B2B Pressure
There will still be a demand for ESG data with large companies. Even if a business doesn’t meet CSRD thresholds, it may still be asked to provide data on Scope 3 emissions to large corporate clients. Companies in industries like automotive, retail, and FMCG now expect suppliers to provide ESG disclosures for procurement.
Supply chain regulations are also continuing to strengthen, not weaken. The CSDDD and Scope 3 rules still require businesses to track ESG data across their rank-1 suppliers. Companies that fail to provide ESG data risk losing contracts to more compliant competitors.
Beyond this, global ESG standards are converging. Many multinational corporations already adhere to ISSB, GRI, TCFD. The EU’s voluntary SME reporting framework suggests that ESG reporting is being situated as a long-term business norm.
Competitive Advantage, Brand Trust & Reputation
Customers prefer sustainable brands, so ESG-conscious consumers are more likely to buy from transparent companies. Greenwashing scandals can destroy brand trust and lead to legal penalties.
Labels and certifications are also something to consider, as companies with strong ESG credentials can secure B Corp certification, Societa Benefit status, and sustainable procurement contracts.
Alongside this younger employees tend to prioritise sustainability when choosing where to work. ESG transparency boosts employer branding, talent retention, and workforce engagement.
Investors, Banks & Insurers Still Require ESG Data
Despite the rollback the Omnibus proposes, ESG data does still impact access to capital. Banks & investors factor ESG scores into loan pricing, risk models, and investment decisions. Stopping ESG reporting could mean higher borrowing costs & reduced access to green financing.
Asset managers & insurers continue integrating sustainability risks into their valuation models, meaning that a lack of ESG disclosures can negatively impact credit ratings and investor trust.
Ignoring ESG could also result in companies struggling to secure capital. Financial institutions increasingly penalize high-risk ESG performers, affecting fundraising and M&A opportunities.
ESG Is a Long-Term Business Strategy
Companies with high ESG performance have stronger financial returns. Research consistently shows a direct correlation between sustainability leadership and profitability.
The political climate may shift, but ESG remains a global priority. The Omnibus rollback is influenced by short-term political pressure, but long-term trends favour ESG transparency. Early adopters will be in a stronger position when reporting mandates return.
Companies investing in ESG today will future-proof against climate risks, supply chain disruptions, and regulatory changes. The EU’s plan for voluntary SME reporting proves that ESG standards will continue shaping global business norms.
In summary, even with Omnibus changes, businesses that maintain strong ESG reporting will:
- Stay ahead of regulatory uncertainty
- Remain compliant with existing & evolving ESG laws
- Strengthen supply chain & B2B relationships
- Secure access to capital & better financial terms
- Enhance brand trust & market differentiation
- Build a long-term competitive advantage
- Drive profitability & business resilience
How Convene ESG can help with your reporting
Convene ESG provides an end-to-end platform to collect data, track progress, compare with peers, align with frameworks and produce ESG reports.
We want to ensure efficiency, compliance, and strategic ESG insight, with automated and centralised supplier data collection and pre-built forms that simplify CSRD data collection.
Here’s how Convene ESG delivers value:
Prepares for Uncertainty and Future-Proofs Compliance
Convene ESG provides an adaptable reporting framework that evolves with regulatory changes, ensuring companies stay ahead of shifting requirements.
Automated updates align reporting with the latest EU and global ESG standards, reducing compliance risks. Centralized data management enables easy adjustments if CSRD or national rules change again.
Ensures Regulatory Compliance Beyond CSRD
The platform supports multiple frameworks including GRI, SASB, TCFD, SDG ensuring comprehensive compliance.
Built-in compliance tracking helps companies meet obligations under national ESG laws and supply chain due diligence rules. Customisable reporting templates simplify adherence to disclosure requirements.
Alleviates Supply Chain & B2B Pressure
Convene ESG enables seamless data collection from suppliers with automated workflows and supplier engagement tools. Our platform supports Scope 3 emissions tracking and integrates with procurement processes to ensure ESG data accessibility.
It will also cover VSME so that suppliers can answer the needs of large B2B clients.
Establishes Competitive Advantage and Brand Reputation
The software offers clear ESG performance dashboards that can be shared with investors, customers, and employees, alongside supporting frameworks like SDG.
Convene ESG helps companies mitigate greenwashing risks by ensuring transparent, auditable, and verifiable ESG disclosures.
Provides ESG data for Investors, Banks & Insurers
Our platform provides investor-grade ESG reporting aligned with financial disclosure standards.
It facilitates ESG risk assessments, helping companies secure better financing terms and meet investor expectations. It also ensures sustainability reporting for lenders and insurers.
Enables ESG as a Long-Term Competitive Advantage
Convene ESG enables data-driven ESG strategy development, helping companies make informed sustainability decisions. Benchmarking tools allow organisations to compare their ESG performance against industry peers.
Future-proof reporting ensures long-term alignment with global ESG trends, maintaining a strategic advantage.
It means companies can stay one step ahead, and be prepared for whatever comes next in the ever-changing sustainability landscape.
Convene ESG helps companies not only meet compliance but turn ESG into a source of value, resilience, and business growth.
