Why Businesses Should Stay the Course Despite EU’s Omnibus Proposal
The European Commission’s Omnibus Proposal aims to simplify sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD). By raising the reporting threshold to companies with over 1,000 employees, it significantly reduces the number of affected businesses. While this might seem like a reason to delay ESG reporting efforts, businesses—including SMEs—should consider staying ahead of the curve rather than falling behind.
Why ESG Reporting Still Matters for Organisations of All Sizes
- Regulations Will Keep Evolving
The Omnibus Proposal is part of a broader effort to reduce administrative burdens, but it doesn’t eliminate the need for ESG transparency. Future policy adjustments could tighten requirements again, and businesses that delay ESG integration now may find themselves struggling to catch up.
- ESG Expectations Go Beyond Compliance
Even if some companies are no longer legally required to report under CSRD, investors, banks, and supply chain partners are still demanding ESG data. Large organisations will continue needing Scope 3 emissions and sustainability information from suppliers—including SMEs—to fulfil their own obligations.
- Access to Capital & Business Opportunities
Many financial institutions are integrating sustainability metrics into lending and investment decisions. Companies that proactively implement ESG reporting frameworks will gain a competitive edge, positioning themselves as lower-risk, future-proof partners.
- Futureproofing Against Market Shifts
Sustainability regulations are gaining momentum globally—not just in the EU. Companies that take early steps toward ESG maturity will be better positioned as more markets, stakeholders, and consumers demand transparency.
- Customer & Talent Expectations
Consumers and employees increasingly favour businesses that demonstrate strong sustainability commitments. Organisations that ignore ESG may risk losing market share and talent to competitors that prioritise responsible business practices.
“Know that it’s a journey. It is not an overnight success. Start with the data that you have.” This perspective, shared by a sustainability specialist from Pewag Group, underscores the importance of taking proactive steps, no matter where a business stands in its ESG journey.
The relaxation of CSRD rules shouldn’t be seen as an excuse to delay action—but rather as an opportunity to prepare strategically without the pressure of imminent compliance deadlines. Companies that embed ESG principles early will be better equipped for future regulations, stakeholder demands, and sustainable growth.
Now is the time to integrate ESG into business strategy, not put it on hold.