Corporate Sustainability: From a Voluntary Choice to a Survival Requirement

Talking about sustainability and the sustainable management of resources is increasingly a source of discussion and misunderstanding.

This may also be because many people still do not fully understand that adapting to certain European standards is no longer a choice, but an obligation. Otherwise, companies risk their very existence and their ability to remain competitive in the international market.

Sustainability is therefore also a set of rules, reporting tools and strategic objectives that directly influence how companies operate.

But why has sustainability changed from a choice to a necessary requirement?

To answer this question, we can refer to what the Digital Innovation Hub Piemonte (DIHP) called the “three reasons for sustainability”:

• because it is required by the United Nations and the European Union

• because it is required by the market

• because it can generate efficiency and cost reduction in the long term

  
  

The contribution of the United Nations: the 2030 Agenda

The most important initiative taken by all United Nations Member States to promote global sustainability was the adoption of the 2030 Agenda for Sustainable Development. This agenda is a plan with clear and concrete goals that each country has committed to achieve by 2030.

Within this agenda there are 17 Sustainable Development Goals (SDGs). These goals can generally be divided into three main categories:

• Economy and development

• Environmental sustainability and protection

• Social inclusion

There is no hierarchy between these three areas. On the contrary, the United Nations aims to develop them together. However, since this article focuses on sustainability, we can look at some of the goals directly related to this topic, as presented on the United Nations website:

• Goal 7: ensure access to affordable, reliable and sustainable energy

• Goal 8: promote sustainable economic growth and decent work

• Goal 9: support innovation, sustainable industrialization and resilient infrastructure

• Goal 14: protect oceans and marine resources

• Goal 15: protect terrestrial ecosystems and biodiversity

• Goal 17: strengthen global partnerships for sustainable development

  
  

The contribution of the European Union: ESG, CSRD, ESRS and the Omnibus Package

One of the main European regulations in this field is the CSRD (Corporate Sustainability Reporting Directive).

This directive requires many companies to produce a sustainability report containing ESG information.

But what exactly are ESG indicators?

ESG indicators measure the environmental and social impact of companies. Thanks to these indicators, this impact is clearly presented in the sustainability report. Unlike a traditional financial report, which mainly considers the economic performance of a company, the sustainability report evaluates the overall value generated by the company, including the environmental and social impact of its activities.

The ESG acronym stands for:

• Environmental (E) – environmental impacts such as emissions, energy consumption and resource management

• Social (S) – social aspects such as working conditions, safety and human rights

• Governance (G) – the quality of company management, transparency and risk control

Looking more closely at European standards, the ESRS (European Sustainability Reporting Standards) define:

• which sustainability information must be collected

• how this information must be presented in reports

• which ESG indicators must be used

The goal of the ESRS is to make sustainability information transparent, verifiable and comparable between companies.

The most recent reform to consider is the one introduced in February 2025, when the European Union published a group of reforms known as the Omnibus Package.

The Omnibus Package on corporate sustainability is a proposal that modifies some existing rules on business sustainability. In particular, it affects the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive, regulations that require companies to report their environmental and social impact.

The Omnibus Package, however, aims to simplify sustainability obligations for companies. More specifically, the reform states that the rules will mainly apply to larger companies (generally those with more than 1,000 employees), reducing the number of businesses involved.

In addition, some deadlines have been postponed by about two years (from 2026 to 2028) in order to allow companies to adapt more gradually. Controls on the supply chain have also been limited, focusing mainly on direct suppliers.

One of the main innovations is the Value Chain Cap, which limits the amount of information that large companies can request from smaller suppliers for ESG reporting.

Another important change is the introduction of a simplified reporting standard for small and medium-sized enterprises, called VSME (Voluntary Sustainability Reporting Standard for SMEs). This framework includes fewer indicators compared to the ESRS standards, making sustainability reporting easier for SMEs

The declared goal of the reform is therefore to reduce bureaucracy and improve the competitiveness of European companies, although some critics argue that it could lower the level of control over environmental protection and human rights.

European sustainability regulations offer several advantages for companies. First, they strengthen competitiveness within the value chain, allowing companies that produce sustainability reports to communicate more easily with partners and clients who already use ESG indicators. They also facilitate access to credit and sustainable finance, since banks and investors increasingly rely on these indicators to evaluate the risk and stability of companies.

The systematic collection of environmental and social data can also improve operational efficiency, helping companies identify energy waste, production inefficiencies and risks within the supply chain. However, adopting ESRS standards requires specific skills and structured data collection systems, which can involve significant adjustment costs, especially for small and medium-sized enterprises. The simplifications introduced by the Omnibus Package reduce part of this burden, but they may also lead to less standardization and comparability of ESG data between companies.

Conclusion

The new European regulations are transforming the way companies measure and communicate their impact. Through tools such as CSRD and ESRS, sustainability becomes an integral part of corporate management and transparency towards stakeholders.

At the same time, these policies are connected to the global objectives of the 2030 Agenda, which promotes balanced development in its economic, social and environmental dimensions.

For companies, sustainability is therefore not only a regulatory obligation, but also a strategic factor for competitiveness, innovation and access to financing within the European economic context.

References

Elena di Donato – DIHP

SDGs Conference – Transforming our World 

United Nations – Department of Economic and Social Affairs, Sustainable Development