ESG reporting in the era of omnibus regulation: 4 reasons to prepare now

The Omnibus regulation has introduced a wave of uncertainty regarding which companies will be affected and in what form ESG reporting obligations will apply. At the same time, it has sent a clear signal: reporting is becoming an integral part of strategic management. In an era of growing climate risks, reputational pressure, and shifting regulatory frameworks, sustainability is more than just a legal requirement – it is a tool for stability, competitiveness, and cost savings.

1. ESG is a global trend – from China to the United Kingdom

While political rhetoric may shift, climate risks remain. ESG reporting is becoming a global standard – far beyond the European Union. China has adopted its own framework aligned with the European approach, the United Kingdom emphasizes climate transition plans, and the United States is strengthening disclosure requirements. Companies that prepare for these changes early will gain not only a competitive edge but also greater resilience in an uncertain world.

2. ESG data as a management tool and a path to savings

For most large companies, sustainability data is a critical foundation for risk management, assessing exposure to climate threats, and planning decarbonization strategies. The growing demand for high-quality data is also reflected in supplier relationships – smaller firms will increasingly face individual requests to provide ESG information. Businesses that can offer credible and transparent reporting may achieve cost savings and strengthen their commercial partnerships.

3. Efficiency and flexibility through quality reporting

ESG reporting can be more than a regulatory obligation – it can be a strategic asset. A well-designed reporting process delivers valuable insights for business management, enhances agility, and helps focus on what truly matters. Organizations that began reporting early are already seeing reduced operational costs and improved risk forecasting. Companies can also adopt a phased approach – for example, using the VSME standard for very small and small enterprises and expanding their system as needed.

4. Trust, brand value, and the war for talent

Transparent ESG reporting helps build trust among customers, partners, and the public. It enhances brand value and strengthens employee engagement – a key factor at a time when companies across sectors see the lack of qualified workers as one of the greatest risks. In the competition for top talent, companies that take sustainability seriously will stand out. Indifference to this topic can lead to a loss of attractiveness and market position.

Get Ready for ESG Reporting

At Frank Bold Advisory, we help you navigate the current requirements of the European CSRD directive as well as the ongoing changes brought by the so-called Omnibus regulation. We guide you through the preparation of an effective ESG report in line with ESRS standards – whether you're just starting out or looking to improve existing processes.

We work with both major market players and smaller companies within supply chains – from initial analysis and selection of key indicators to final reporting.