As we wrap up the ”year of Omnibus,” what should we expect for corporate sustainability in 2026? My focus remains on the real-world impacts and the critical role of finance. 

Many have expressed concern about a dip in ambition after the EU streamlined certain reporting requirements. However, I believe that despite the so-called ”ESG backlash,” underlying issues like climate change and social inequity are only intensifying. This makes a structured framework more essential, not less.

The escalating cost of physical climate risks and social pressures across supply chains are not abstract concepts, they are fundamental to business continuity. Sustainability isn’t just a ”nice to have”, it is our most viable tool for translating real-world phenomena into corporate strategy and accountability

I remain also positive about the future of sustainability reporting. While it will take time for the market to settle with the updated CSRD/CSDDD expectations and voluntary reporting (VSME), we must remember where we started.

I remember five to ten years ago, the financial sector was constantly highlighting the lack of reliable sustainability data. You cannot price risk or allocate capital effectively without mandatory, assured, and standardized data. Because the financial sector (banks, insurers, and asset managers) needs this data for transition finance and systemic risk management, I believe market practice will demand high-quality disclosures regardless of regulatory changes and Omnibus. To me, the ongoing revision of the SFDR is a perfect example of this. It is not about lowering the bar, but rather refining the framework to keep up the pace with market needs and ensure it remains a credible tool for the transition.

My final key point is the role of SMEs. For sustainability to truly work, SMEs must be brought into the ”sustainability bubble” to access green finance. Value chain requirements, especially Scope 3 and social impact, are the most challenging but also the most transformative parts of EU regulation. Large companies must continue to engage and mobilize their smaller partners to provide auditable data. I am confident this will become standard practice, even with the current restrictions on information requests.

While disclosures are essential, so much is happening on a voluntary basis. For example, biodiversity is a field where many companies are now leading the way outside of mandates. I’ve seen this firsthand since starting our naturetech company, NaturAI Oy.

Let’s focus on cooperation and supporting one another in this field.

I wish everyone reading my blog a joyful holiday season and a wonderful new year!

#omnibus #sustainability #greenfinance #sustainablefinance #SFDR #greentransition #climate #humanrights #biodiversity