The omnibus proposal envisages relaxing the reporting obligation for the majority of companies, for example by postponing it and simplifying the requirements. However, the key challenges for companies remain. Climate change, resource scarcity, supply chain risks and rising costs already pose concrete challenges today. In this context, it is clear that sustainable management remains strategically important even without regulatory pressure.
This is exactly what Markus Adler, CEO of Code Gaia, and Viola Möller, Partner at BDO Germany, talked about in our new episode of the Code Green Podcast. The two talk about the current developments and uncertainties for companies and explain why withdrawing from sustainability reporting is not an option.
You can also listen to the interview in our podcast Code Green on Spotify. Listen to the whole episode now or get an overview first in the following blog post.
Table of contents
1st Post Omnibus: What companies can expect now
The EU Commission’s omnibus proposal has initiated several key changes to sustainability reporting and made things easier in the short term: fewer reporting obligations, longer deadlines and reduced data requirements. However, what initially seems like a relief also harbors risks – in particular the danger of interrupting or even abandoning the transformation process. Yet the current phase represents a great opportunity: companies can consolidate their processes in a targeted manner, evaluate software tools and further develop internal structures.
Instead of backtracking, now is the right time to anchor sustainability as an integral part of resilient corporate management, regardless of regulatory obligations.
2. why withdrawing from sustainability reporting is not an option
Even if some companies no longer fall under the CSRD in future, the underlying challenges remain acute: climate crisis, social inequality and fragile supply chains jeopardize long-term resilience and competitiveness. ESG management is no longer a nice-to-have. It is a strategic success factor. Viola shows why sustainability management remains essential regardless of reporting obligations: Climate risks, resource scarcity and rising costs affect every company.
The climate issue is not going away – and neither are social challenges or the rising costs of unsustainable value creation.
Viola Möller
Partner BDO Wirtschaftsprüfungsgesellschaft AG
Many companies have carried out a double materiality analysis as part of their CSRD preparations, in some cases taking a holistic look at their own impact and affectedness for the first time. For Viola Möller, this step was a real turning point in many projects. She explains that dealing with dual materiality was eye-opening for many organizations. As it was not just about reporting requirements, but about understanding where real risks and opportunities lie, including financial ones.
Especially for companies that are new to sustainability, this structured process has often led to a deeper examination of these questions: Who are our relevant stakeholders? What are the environmental and social impacts of our business model along the value chain? And which issues harbor strategic risks or future opportunities?
Viola emphasizes that dual materiality is not a bureaucratic end in itself, but also an opportunity for smaller or medium-sized companies to gain real entrepreneurial insight.
A well-founded examination of the dual materiality does not lead to data overload, but to a targeted selection of central topics with strategic relevance.
For companies that are now exempt from the reporting obligation, this means that they should not backtrack now, but use what they have already developed as a strategic basis. The double materiality analysis offers precisely the orientation that companies need in uncertain times. It shows which topics have priority, where risks lie dormant and where there is ESG potential that can be exploited in a targeted manner. If you think ahead now, you can focus more clearly on the essentials. After all, the analysis is not just a reporting tool, but a lever for strategic management.
This blog post explains various approaches to pursuing a resilient sustainability strategy with Code Gaia and the role that a materiality analysis light plays here.
Medium-sized companies in particular report that they have identified new potential, from risks in the supply chain to opportunities for innovation, by taking a structured look at environmental and social issues. Those who transfer these findings into their processes not only create transparency, but also a real ability to act. The task now is to use this groundwork as a starting point: for a sustainable strategy, differentiated communication and a credible position in the market.
4 Conclusion: Staying tuned now pays off
The omnibus proposal shifts regulatory requirements – but the business challenges remain. Sustainability is not a trendy topic, but a central component of future-proof corporate management. It contributes to risk minimization, resilience and strategic positioning – regardless of statutory reporting obligations.
Companies that continue to develop their existing sustainability processes now and implement them in a targeted manner create clear advantages: they increase their ability to act, strengthen the trust of stakeholders and expand their competitive position in the long term. It is not about whether sustainability remains relevant, but about how consistently companies think about it now.
