The fear is real - but is it justified?
Why ESG managers are now under pressure
Since the introduction of the Corporate Sustainability Reporting Directive (CSRD), many companies have panicked to hire ESG managers to meet regulatory requirements. With the announcement of the omnibus package, which relaxes many of these reporting requirements, ESG experts are now facing an uncertain future. Suddenly, companies are asking themselves: do we even need ESG managers anymore?
The bitter truth: Some ESG managers have already received signals that their positions are being questioned, including some members of the CSRD reddit community. Others are uncertain whether their work will continue to be valued. But does this really mean the end of ESG? Or is this rather an opportunity to strategically reposition the field?
The sudden change in regulation has led many companies to think that ESG is a “luxury problem”. If there are no strict reporting requirements, there seems to be less immediate need to continue funding ESG teams. But this is a short-sighted view. Sustainability is not just a regulatory trend, it is a key competitive advantage.
Investors and customers continue to demand ESG transparency. Sustainability criteria have long been integrated into investment strategies and purchasing decisions.
Global regulations remain in place. Even though some requirements have been relaxed, further directives are already in preparation (e.g. Green Claims Directive, Product Carbon Footprint, supply chain due diligence obligations).
Sustainability as risk management. Companies that neglect ESG run the risk of losing competitiveness in the long term.
The key question is therefore not whether ESG will become obsolete, but how ESG managers can reposition themselves in order to convince companies of its strategic importance.
1 ESG remains relevant - companies that act now win!
1.1 ESG is more than just regulation
Many companies have implemented ESG not only because of legal requirements, but because it brings real business added value. Sustainability reduces risks, strengthens reputation and creates trust among customers and investors.
While regulatory obligations have been relaxed with the omnibus package, ESG remains essential for companies to remain competitive in the long term. ESG is not just a bureaucratic hurdle – it is a strategic necessity.
1.2 Now is the perfect time for strategic development
The reduced pressure of short-term reporting obligations creates the opportunity to establish ESG structures in a more sustainable and strategic way. Instead of focusing solely on compliance, companies can now develop long-term ESG strategies that have a real impact. For example, ehe sustainability strategy based on the findings of a double materiality assessment makes it possible to systematically consider both the company’s internal risks and opportunities as well as the external impact on the environment and society. This holistic approach enables strategic decisions to be made on a sound basis by prioritizing and addressing relevant issues in a targeted manner – leading to sustainable value creation and a positive impact on all stakeholders in the long term.
Voluntary sustainability reports in accordance with VSME also increase transparency, enhance comparability and strengthen stakeholder confidence. They also provide a structured basis for improving sustainability performance in a targeted manner and achieving long-term competitive advantages.
For ESG managers, this means that now is the right time to position themselves as strategic drivers of innovation and transformation. Sustainability initiatives that go beyond mandatory reporting are more in demand than ever.
1.3 The next wave of ESG regulation is sure to come
Even if some reporting obligations have been temporarily reduced, this does not mean the end of ESG regulations. On the contrary: new ESG requirements are already on the way and will present companies with new challenges:
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Green Claims Directive: Stricter regulations against greenwashing
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Product Carbon Footprint (PCF): CO₂ balances for products become mandatory
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Ecodesign Regulation: Environmentally friendly design of “energy-related products”
and much more.
Companies that neglect ESG now risk having to take hasty action later. Forward-looking companies, on the other hand, use the time to expand their ESG strategies in a structured manner and prepare for future challenges.
1.4 ESG manager: from reporter to implementer
Until now, the ESG role has often been dominated by mandatory reporting – collecting data, analyzing it and converting it into reports. But ESG must be more than just a mandatory task.
The task now is to actually implement sustainable measures:
Making supply chains more sustainable
Develop and realize climate neutrality targets
Integrating the circular economy into companies
Implement measurable CO₂ reduction measures
Companies need ESG managers who not only focus on compliance, but are actively involved in sustainable transformation. Those who position themselves as strategic drivers now will be indispensable in the future.
2 The economic perspective: Why ESG makes sense in the long term
2.1 Sustainability as a competitive advantage
Sustainability is no longer a “nice-to-have”, but a tangible competitive advantage. Companies that take ESG seriously benefit from:
Better brand reputation: Consumers prefer sustainable products and services.
Lower costs through more efficient use of resources: Sustainable processes help to reduce energy and material costs.
Increased investor confidence: investors are increasingly focusing on sustainable companies with clear ESG strategies.
2.2 ESG and financial performance
Studies show that companies that operate sustainably are more successful in the long term. Companies that develop a strong sustainability strategy have:
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Lower financial risks through forward-looking environmental and social management.
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better access to capital through sustainable investment programs.
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greater resilience in times of crisis, as they are better prepared for regulatory and social changes.
2.3 Employer branding & skills shortage
ESG is not only important to customers and investors – sustainability is also a decisive factor for employees. Young talent in particular prefers employers who take ESG seriously and actively implement it. Companies that position themselves as sustainable employers at an early stage find it easier to attract and retain skilled workers in the long term.
3. what to do if your company scales back ESG?
3.1 Your know-how is versatile
If your company reduces ESG, this does not mean the end of your career. ESG managers have valuable skills that are in demand in many other areas of the company:
Project management: The ability to plan and implement sustainability projects is also useful in other areas.
Strategy development: ESG managers are used to drawing up long-term plans – a sought-after skill in many industries.
Communication & change management: Sustainability requires persuasion, a skill that can also be applied to other strategic issues.
These skills open up new career paths in related areas such as the circular economy, decarbonization or sustainable supply chains.
3.2 Discovering sustainability-related career paths
If ESG is no longer a priority in your company, there are numerous alternative career paths:
Circular economy & recycling: Conserving resources and innovative recycling processes are key issues for the future.
Decarbonization & energy efficiency: Companies are looking for specialists to help them reduce their carbon footprint.
Sustainable procurement & supply chain management: Transparency and sustainability in global supply chains are a growing focus.
3.3 Further training as a career booster
In addition to traditional CSRD training, specializing in new ESG topics can significantly improve your career opportunities. Key growth areas are:
Green claims & anti-greenwashing strategies: Stricter regulations are making experts in sustainable communication and compliance increasingly in demand.
Climate risk management: Companies need to better understand and minimize the risks posed by climate change.
Carbon footprint accounting (PCF): Companies need reliable experts to accurately calculate their carbon footprint and develop reduction strategies.
About our CSRD Compass” newsletter always stay up to date. Sustainability podcasts also help to keep you up to date with the latest topics and news.
3.4 Networking & increasing visibility
Visibility and a strong network are crucial for recognizing new opportunities:
Active participation in specialist conferences and ESG events.
Use LinkedIn to position yourself as an ESG expert.
Writing guest articles in specialist magazines to share knowledge.
With these strategies, you can advance your career even if your current company cuts back on ESG.
4th Global ESG Outlook: International developments & trends
4.1 How is ESG developing worldwide?
While Europe is considered a pioneer with the CSRD and other ESG requirements, the topic is also developing dynamically in other regions. Although there are fewer mandatory regulations in the USA, investors and companies are increasingly focusing on voluntary ESG standards. In Asia, many countries are pursuing ambitious sustainability strategies, particularly with regard to climate neutrality and the circular economy.
USA: Large investors such as BlackRock are increasingly focusing on ESG criteria, while states are pursuing different ESG approaches.
China & Asia: China is planning extensive CO₂ reduction measures, while Singapore is setting up a sustainability center for companies.
Latin America & Africa: Awareness of ESG is increasing here, often in connection with social issues such as fair working conditions and biodiversity protection.
4.2 New ESG opportunities in international markets
The international market can offer exciting opportunities for ESG managers. Companies with global supply chains need expertise to adapt to different ESG requirements in different regions. Specializations in international standards, reporting and sustainable supply chain management can open up valuable career opportunities.
Sustainable financing: International banks and investors are increasingly focusing on ESG criteria when granting loans.
Regulatory adjustments: ESG experts who are familiar with global guidelines are particularly in demand.
Sustainability consulting: Many companies seek external consultants to adapt their ESG strategies to international standards.
These developments make it clear that ESG is not just a European issue. Anyone who networks and trains internationally has excellent future prospects in the sustainability sector.
5 Conclusion: ESG is not dead - it is evolving!
The current uncertainties surrounding the omnibus package and relaxed ESG requirements have led to a short-term rethink at many companies. But the core message remains: ESG is not redundant – it’s just changing. Companies that see ESG as a strategic tool will benefit from it in the long term.
5.1 ESG remains a business necessity
Regulations may change, but the social and economic environment continues to demand sustainable business practices. Investors, customers and professionals are increasingly paying attention to ESG criteria. Those who remain active in this area will secure long-term advantages.
5.2 ESG managers must position themselves strategically
The role of ESG managers is changing. Instead of just producing reports, strategic thinking and operational implementation are required. The future belongs to those who can not only advise companies, but also implement concrete sustainability measures.
5.3 Flexibility and further development are the key
For ESG experts, this means that further training, adaptability and a strong network are crucial. Topics such as climate risk management, green claims and carbon accounting offer new career opportunities in the sustainability sector.
5.4 Sustainability remains a long-term megatrend
Regardless of short-term regulatory changes, ESG will remain a decisive factor in the long term. Companies that seriously address sustainability at an early stage have a clear competitive advantage.
