CSRD, the Omnibus Regulation, and Why Sustainability Reporting Still Matters for Every Business

The Corporate Sustainability Reporting Directive (CSRD) has been one of the most influential regulatory developments in the ESG space in recent years. But with the introduction of the Omnibus Regulation, many companies (particularly SMEs) now find themselves suddenly out of scope.

For some, this has brought relief. For others, confusion. And for many business leaders, one question continues to surface: “If we don’t have to report anymore… should we still be doing ESG?”

After years spent supporting multinationals with ESG assurance, CSRD readiness, and sustainability strategy, my answer is clear: Yes. Sustainability reporting still matters, not because regulation demands it, but because long-term business resilience does.

The need for transparency, climate readiness and credible sustainability information remains, regardless of regulatory shifts.

Let’s unpack why.

1. Regulation is only one driver, not the driver

CSRD heightened awareness, yes. But sustainability reporting existed long before CSRD and it will exist long after it.

Today, transparency is being driven by:

• customer expectations

• supplier requirements

• investor scrutiny

• lender assessments

• workforce and societal pressure

• increasing climate and resource risks

In many industries, the equation has already changed:

No ESG → no contract.
No ESG → no capital.
No ESG → no trust.

Even if your company is currently out of scope, future revisions or expansions of reporting requirements may pull you back in. Regulatory pendulums swing, but the direction of travel is unmistakable. More transparency, not less!

2. ESG maturity now influences access to finance

Banks and lenders are embedding sustainability risk directly into lending decisions. They want to know:

• How exposed are you to climate risk?

• Do you understand your transition pathway?

• Are you prepared for regulatory change?

• Can you demonstrate emissions, efficiency and resilience?

This applies to SMEs just as much as large companies. Sustainability data is becoming financial data. Companies with credible ESG information increasingly receive:

• better financing terms

• stronger creditworthiness

• lower risk assessments

• higher investor confidence

Those without it may find themselves at a competitive disadvantage.

3. Your customers are watching, and their auditors are too

Even if you are out of scope, many of your customers aren’t. Large companies preparing for CSRD still need:

• high-quality Scope 3 data

• supplier ESG insights

• credible upstream emissions calculations

• responsible sourcing information

This means the expectation flows straight down to organisations of all sizes. For suppliers, contractors and SME partners, proactive ESG reporting is no longer an optional extra, it’s a strategic advantage.

Companies with better ESG maturity are more likely to be:

• retained

• selected

• preferred

• trusted

…over those who can’t provide the data their customers now need.

4. Sustainability is a strategy, not a report

Companies that view sustainability purely as reporting or compliance will always struggle. But companies that see sustainability as:

• risk management

• cost optimisation

• innovation and product differentiation

• talent attraction and culture

• future-proofing

• a source of competitive advantage

…will find opportunities that far outweigh any reporting requirements.

ESG is no longer about corporate social responsibility. It is now a core business function that shapes resilience, efficiency and long-term value.

5. Geopolitics may shift but climate and market realities don’t

It’s true that political priorities evolve. Regulatory frameworks adjust. Headlines change (especially now more than ever!). But the underlying pressures, the ones that influence real business risk, remain steady:

• climate impacts

• extreme weather

• supply-chain fragility

• resource volatility

• investor expectations

• economic uncertainty

If anything, global uncertainty makes transparency and preparedness more valuable, not less. The companies that treat sustainability as a strategic anchor will be far better positioned to navigate volatility.

So what should businesses do now?

Whether you’re an SME, a high-growth company, or a mid-size business reassessing your sustainability priorities, here’s what matters most:

Don’t pause your ESG efforts — refine them

The absence of regulation shouldn’t mean the absence of strategy. Keep moving, but make your efforts right-sized and focused.

Start with data you can trust

Build a credible baseline of ESG information, energy, emissions, waste, suppliers, governance. You’ll need it for future financing, supply chains and resilience planning.

Strengthen your relationships through transparency

Customers, investors and partners trust organisations that communicate clearly about their sustainability posture.

View ESG as a value driver, not a cost

Sustainability reduces risks, cuts costs, attracts talent, and strengthens brand reputation. Treat it like a strategic function.

Prepare for the next wave of regulation

Even if you are out of scope now, it’s unlikely to stay that way forever. Those who prepare early avoid costly, rushed transitions later.

Across sectors and business sizes, one theme has remained consistent throughout my work. Companies that invest early in meaningful sustainability practices gain resilience, trust, and long-term value. Those that wait for regulation are always chasing the gap. CSRD may no longer apply to your organisation. But sustainability absolutely does.

If your business is rethinking its ESG approach, or needs guidance to build a practical, credible path forward, Orogen8 is here to support you.

Thoughtful, strategic sustainability isn’t just good governance. It’s good business!