Despite milder political rhetoric and delayed regulations, interest in ESG reporting has not waned. In fact, new data suggests that it is becoming increasingly integrated into corporate strategies. So what is driving companies—especially small and medium-sized ones—to continue investing in sustainability data, even when it is no longer a strict requirement?
ESG reporting after CSRD delays – why companies continue to deliver sustainability data
When the European Commission introduced the Omnibus Directive in early 2024, thereby loosening the CSRD timetable, some expected companies to breathe a collective sigh of relief – perhaps even pausing ESG reporting. But that never happened.
Why not? According to BNP Paribas' ESG survey for 2025, investor expectations have not only remained unchanged – they have even intensified. Companies are now expected to link sustainability to finance, governance, risk and impact in a coherent manner. As the report states: “Investors are increasingly evaluating the interdependence of sustainability factors, rather than viewing them as isolated issues.” In other words, ESG is no longer an isolated checklist. It is a meaningful system.
This change completely transforms the issue. It is no longer a question of “Do we have to report?” but “What happens if we don't?”
Why small and medium-sized enterprises are investing in ESG reporting even though it is voluntary
In a previous article, we examined VSME – the voluntary framework launched by EFRAG for small and medium-sized enterprises. Although it is not mandatory, its spread indicates a quiet transformation in how small and medium-sized enterprises view data. VSME is not successful because of legal requirements – it is successful because of structural needs.
Why? Because even smaller companies now face a barrage of ESG-related requests from banks, partners, and suppliers. Without a common framework, each response becomes an administrative burden. With VSME, that burden becomes a sign of credibility, comparability, and seriousness.
And here's the interesting part—no one has to use it. But they do. Because without it, they risk sounding like noise in a market that is learning to speak in harmony.
ESG data as a common language for risk, value, and long-term trust
This is perhaps the real purpose of ESG reporting—not compliance, not even storytelling, but standardization. In an interconnected market, where global capital flows and supply chains transcend regulatory boundaries, companies need more than just performance—they need to be understandable.
ESG data, when structured and shared, does just that. It offers a common grammar for describing risk, resilience, and long-term value. That is why companies continue, even in the absence of strict legal requirements. Because it is important to be part of the conversation—and being understood becomes a currency in itself.
From necessity to strategy – how ESG data becomes capital and competitive advantage
Ironically, the EU's original ambition – to bring sustainability and profitability closer together – can now be realized despite hesitation from legislators. Companies are discovering that ESG data, previously seen as a cost, is increasingly serving as a tool for attracting capital, a risk management tool, and an asset for corporate reputation.
This is not just a policy change. It is a change in mindset. When the need for clear communication becomes a business advantage, ESG is no longer optional. It becomes a natural extension of how companies navigate the economy.
The EU's long-term goal: making ESG an obvious business strategy
The persistence of ESG reporting despite regulatory uncertainty signals something deeper than mere compliance. It signals a market shift—a realization that sustainability data is not a cost, but an asset.
Whether through frameworks such as VSME, investor-driven expectations, or operational needs, companies are discovering that reporting offers something indispensable: a shared narrative. A narrative that unites risk and opportunity, sustainability and profitability, and ultimately, business and society.
And that may be the most important step of all. Wasn't this the long-term goal all along?
To make ESG irresistible – not because it's mandatory, but because it makes good business sense. If that was Brussels' plan from the outset, it may have worked a little too well.
