Αs provided by CSRD (Corporate Sustainability Reporting Directive) companies operating within the European Union, will gradually produce - beginning this year - their first sustainability reports under unified ESRS (European Sustainability Reporting Standards), ensuring that all corporations “speak the same language when telling their sustainability stories”.

However – ironically - just as ESG was about to reach its long –awaited widespread adoption, the European Commision, by its Omnibus  proposal (https://omnibus.gr)  now seems to set a turning back, regarding obligatory ESG reporting, by providing:

1. the postponement of entry into application - by 2 years - for large companies and listed SMEs (wave 2 and 3) and
2. the limitation of the scope of the reporting only to large corporations (with more than 1.000 employees and either a turnover of over EUR 50 million or a balance sheet above 25 million. ) .

On the other hand, a recent breakthrough KPMG survey (”KPMG 2024 Global ESG Due Diligence” study/ https://kpmg.com) showed that four out of five dealmakers globally, indicate that ESG considerations are on their Mergers +Aquisitions agenda, with 45% of them encountering a significant deal implication, as a result of a material ESG due diligence finding (with more than half of these experiencing a "deal stopper").

Thus, ignoring ESG risks could lead to serious deal implications.

Helsinki - based “Upright” company  (https:// www.uprightproject.com) has just launched a groundbreaking platform designed to quantify the impact of ESG risks and opportunities – such as climate change, pollution, and business conduct – on key financial metrics including revenue, operating profit, profit before tax, company assets, liabilities, cash flow movements.

Τhus, ignoring ESG risks is translated into tangible financial metrics.

Rating agencies, once focused solely on financial fundamentals, have expanded their methodologies to recognize the direct impact of ESG factors – such as corporate corruption or rising sea levels caused by climate change – on credit default risk.

Thus, ignoring ESG risks is increasingly seen as credit misjudgement.

By the above mentioned latest tools ( (KPMG survey, platform, ratings) it is clearly shown that ESG issues, aren't just qualitative concerns but are also translated into tangible, financial metrics, leading to serious business implications for the companies.

Thus, ignoring ESG factors in business decisions is increasingly proved as financially highly irresponsible.

Therefore, despite the proposed changes of  Omnibus I - by which the obligatory reporting may be delayed for some companies, nevertheless, the corporations should, necessarily still adhere to the (voluntary) reporting, as a strategic tool - focusing on the two - dimensions analysis (double materiality) still provided in CSRD, by which they will trace the impacts, risks and opportunities on ESG issues - enabling them to accordingly plan their future (financial) sustainable strategies.

Concluding, ESG should be regarded as a valuable, priceless strategic tool - far beyond a regulatory compliance framework.