The dust around the EU Omnibus has finally settled… has it?
A few months have passed since the European Commission released its infamous “Omnibus” proposal, an effort to drastically simplify the sustainability-reporting burden on European companies.
In the immediate aftermath of the proposal draft’s leak, confusion and chaos seemed to reign. Many companies within scope for 2025 and beyond had, in fact, already begun gearing up for their reporting duties.
Sustainability departments have been plunged into a very uncertain future, and so have consultants and specialist software providers. NGOs and climate associations have protested, deeming Omnibus as a step back from climate justice.
And the controversy is still not fully over: as of May 23, the EU Ombudsman has launched an investigation to determine whether the European Commission acted in compliance with EU law. In the meantime, the Omnibus package still awaits a final approval, although the odds are in its favour.
But in the meantime, has the market managed to adapt to the changed reporting climate?
At Briink, we build AI tools to support companies and ESG service providers on their ESG journey, and that means we speak daily with those in the trenches of regulatory reporting.
Here are a few trends we see emerging in the second quarter of 2025:
Before regulations, ESG reporting was voluntary. And despite the broader backlash against ESG, one that is not limited to Europe but originated in Trump’s USA, we still observe that voluntary ESG reporting remains relevant in the market.
For example, the CDP reporting season is now in full swing, and we have already received several requests to assist companies with their CDP submissions ahead of the September deadline—even though CDP is a notoriously tough nut to crack.
Beyond that, major ESG reporting organizations are working to make their voluntary standards more robust, auditable, and detailed. B Corp, for instance, released its new standard in April, clearly raising the bar for companies seeking to obtain or maintain the B Corp certification.
Where does the pressure to report voluntarily come from?
Simple: market forces, supply-chain requirements, and investor demands. And while the sudden “deregulation” wave can influence these areas too, it has yet to make voluntary reporting irrelevant, as the most pessimistic takes on the post-Omnibus world foreshadowed.
The CSRD’s opulent ESRS standards have a lesser-known (at least in the corporate world) little sibling: VSME, the Voluntary Standard for non-listed Micro, Small and Medium-sized Enterprises.
The title says it all: it’s a leaner version of ESRS that is considered an “easy first step” toward full-blown ESRS disclosure, especially for smaller businesses in scope for later reporting.
The real change here is that many companies previously in scope for ESRS are now falling back on VSME reporting.
Reporting under VSME is a strategically sound move: the standard captures the most important ESG metrics and lays an ideal foundation for more comprehensive reporting down the line, while still constituting, once again, a valuable source of ESG data for third-party users such as investors, supply-chain managers, and consumers.
The VSME features two modules: the Basic Module and the Comprehensive Module. The latter goes a bit deeper and builds on the former.
By the way, if you’d like to create your VSME disclosure from scratch or from any existing document — Briink can help you fill one out in minutes!
We have yet to see many VSME reports in the wild, as many companies are still in the midst of their reporting efforts, but we’re sure more will pop up.
The Omnibus turmoil teaches a clear lesson: regulations can shift without warning, so companies must prepare for turbulence.
But volatility can also spark fresh ideas. Most businesses, large and small, still understand that a strong sustainability strategy, rooted in full transparency and reliable data, is a true asset. But it needs to be paired with greater flexibility and an appetite for innovation.
Many of our clients have wrestled with the shifting rules, yet they have adapted because they did not put all their eggs in one basket, over-rely on CSRD-specific tools and providers, or wait passively to fall within the regulations’ scope.
Paradoxical as it may seem, early movers have also emerged as clear winners. Companies that proactively embraced sustainability from day zero were better equipped to navigate a volatile regulatory landscape, avoiding both over- and under-investment in reporting and letting their own ESG strategy and vision forge their path. Laggards have been left with uncertainty and questions, which have only caused delays and confusion in implementation.
If you are struggling with the Omnibus uncertainty, here’s what we see working in this strange new world:
.svg)
.svg)
