At Dazzle, we believe the new Omnibus proposal raises the stakes for corporate sustainability. Beyond compliance, this is a test of credibility; separating those who truly wish to integrate sustainability into their business from those who are treating it as merely a box-ticking exercise.
For companies committed to sustainability, now is the time to step up. To demonstrate that your commitment was never just about regulations — but about real impact.
We feel plenty has already been said about the potential negative impact of Omnibus. So in our usual Dazzle way, we wanted to also consider a more positive view (we are an organization that likes to always focus on the positives, after all).
Some companies think the recent ‘Omnibus’ announcement is a good reason to roll back on sustainability commitments. But the opposite is actually true! At Dazzle, we believe Omnibus actually offers companies an opportunity to gain more advantages from committing to sustainability than ever before.
(Everybody rightfully seems to be talking about ‘Omnibus’ right now, but if you don’t know what we’re referring to, it is the European Commission’s recently announced “Simplification Omnibus package”. A proposal to amend the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and Taxonomy Regulation).
And by amend, we mean significantly water down.
But remember, this is still only a proposal, so we’re not going to regurgitate any of the potential dirty details here.
Instead — amidst all the disappointment from sustainability professionals that these pivotal sustainability regulations could be significantly diminished — we would like to offer some more positive thoughts.
Specifically, about the opportunity this represents for companies to really prove to their stakeholders that they are innovative, forward-thinking, future-proof, leaders!
The Omnibus will separate the leaders from the pretenders
Forward-thinking companies understand that the real benefit of adopting sustainable practices doesn’t have anything to do with regulatory compliance. Sustainability, with all of the operational efficiencies it brings, just makes long-term business sense.
So despite the Omnibus announcement, we can expect these leading companies to carry on with their sustainability plans as normal.
Any companies that revert back on their plans simply because some regulations might be altered, will be ousted to stakeholders as uncommitted, strategically-shaky, short-term focused brands. Brands that you might say, are unlikely to command a loyal following.
(Maybe we are generalising a bit here; of course there are likely some well-intentioned companies who weren’t quite ready to implement the necessary changes yet, and are relieved to have more time. But we feel that our points above are mostly accurate).
What an opportunity this represents then, for companies to prove that they belong in that first, forward-thinking, sustainability leader category.
Why companies should see Omnibus as a reason to double-down on their sustainability initiatives, as opposed to cutting back on them
Imagine what a powerful statement it would be for a brand to come out — in the wake of Omnibus — and announce that they are more committed than ever to complying with, or even surpassing the (un-watered down) regulatory requirements in question.
This would actually be a much stronger statement now than it would have been before Omnibus.
So basically, by making the same commitment to sustainability, a company can impress stakeholders significantly more today than they could before Omnibus.
To put it another way, Omnibus has actually made committing to sustainability more valuable!
And this isn’t just about impressing stakeholders. Remember what we said before about long-term business sense? Consider the following:
- Brand image: Companies that commit to sustainability regardless of Omnibus are likely to significantly boost their brand image, and improve stakeholder trust. Helping to consolidate and expand a loyal following.
- Foster trust: These companies will be seen as sustainability leaders, and will be trusted as companies who really follow through on their promises.
- Competitive advantages: Energy and resource efficiency, supply chain optimization, process improvements, general innovation, waste reduction, increased employee productivity and engagement, risk management and long-term resilience. These are the kind of operational, and in the long-term, financial benefits that committing to sustainability brings.
And here’s the kicker, companies who continue with their sustainability commitments in light of Omnibus will reap all of these advantages. While simultaneously, their competitors that chose to roll back on their commitments, will not! (What an opportunity to get ahead). - Future regulations: If you asked most companies how long they would like to exist into the future, what do you think they would say? 5 years? 15 years? 100 years? We’re betting it would be towards the higher end of the scale. We’re also betting that over the next 100 years, it is likely that more sustainability regulations will at some point be introduced. So, probably best to just start keeping up with the competition now?
On that last point, we have come up with what we think is a clever analogy to conclude this article;
Imagine companies as vehicles. Sustainability is a well-working engine. The more sustainable a company becomes, the more efficiently and cost-effectively the vehicle runs. So, here’s what we say to companies that are considering rolling back their sustainability commitments because of Omnibus:
Why would you let some silly regulations lead you to a future where your competitors have moved on to next-generation electric efficiency, while you’re still running on expensive fossil fuels?
