Seizing value from the Omnibus

The proposed changes should be seen not as a retreat from sustainability, but instead as a strategic pause that allows businesses to comply with regulations while still focusing their attention on implementing meaningful change.

From the beginning, the Corporate Sustainability Reporting Directive (CSRD) has represented far more than a compliance framework; it is a catalyst for genuine business transformation. The recently announced Omnibus package is a pragmatic response from the EU Commission to the initial scale and speed of the CSRD’s rollout and delivers some much-needed breathing space.

An estimated 80% of companies no longer meet the threshold for CSRD reporting [1]. Those still in scope can expect the volume of ESRS data points that they have to report on to be significantly streamlined. Moreover, the burden of sector-specific standards has been lifted. The CSRD’s original intentions were to standardise sustainability reporting across EU companies and to deepen corporate commitment to environmental and social responsibility. These intentions remain firmly in place. The key principles that underpin CSRD have not changed.

If you are no longer in scope, you shouldn’t suddenly backtrack on the progress you have already made. A robust approach to sustainability has never been more important. It will ensure you remain competitive with peers who are still in scope and allow you to remain aligned with evolving market expectations.

We recently hosted ‘The Good, the Bad and the Omnibus’ breakfast event, where we unpacked the implications of recent CSRD changes with several industry leaders. We discovered that while regulatory shifts create uncertainty, they also unlock fresh possibilities for those ready to seize them.

Here are four key takeaways

1. Authenticity over uncertainty

Companies that choose to stay true to their purpose and “embrace the chaos” despite recent uncertainty will find themselves better positioned to build resilient operations, attract investment and strengthen stakeholder relationships. This regulatory pause shouldn’t be seen as an excuse to slow down but rather an opportunity to build sustainable and authentic business practices that will create lasting value and resonate with stakeholders.

2. Integration over detail

For sustainability to become a driver of genuine business transformation, it needs to be integrated across every business function, not siloed within compliance teams. Finance, operations, HR and strategy teams must work together to reveal the link between sustainability efforts and value creation. By taking an integrated approach, reporting can be transformed from a burden into a strategic advantage, revealing insights that drive better decision-making and operational efficiency.

3. Progress over targets

When speaking to your board, focus on the opportunities this regulatory flexibility creates rather than dwelling on setbacks. The Omnibus doesn’t signal failure. It represents responsive governance that listens to business needs. Use this time to build realistic, achievable milestones that you can demonstrate genuine progress against.

4. The power of communication over compliance

Telling your sustainability story is just as important as ticking regulatory boxes. Stakeholders want to understand your journey and see the authentic progress you have made. Companies that communicate transparently about their sustainability efforts, the challenges they have faced, and the lessons they have learnt are able to build stronger relationships with their stakeholders.

For those prepared to see beyond “mandatory compliance”, everything remains on track. The opportunities for value creation are still clear. For companies still navigating the complexities of CSRD, the Omnibus package has provided some much-needed flexibility. The EU Commission has demonstrated its capacity to listen, acknowledging that the initial pace was too ambitious. Now, more than ever, businesses have the chance to rebuild strategically, solidify their commitments, meet their targets and build supply chains that are resilient and robust.

Get in touch

If you’d like to discuss this, or any other subject, please get in touch with Richard Costa, Consultancy Director, at richardc@gather.london

We’d love to know what you think.