Is ESG still necessary? Why ESG managers shouldn't worry
ESG managers fear for their jobs! Learn why sustainability remains relevant and how you can future-proof your career.
- The Omnibus package has relaxed some CSRD reporting requirements, but ESG remains a business necessity far beyond compliance.
- ESG managers' roles are shifting from report producers to strategic drivers of transformation and implementation.
- Investors, customers, and talent continue to demand ESG transparency regardless of regulatory changes.
- New regulations (Green Claims Directive, Product Carbon Footprint, supply chain due diligence) are already on the way.
- ESG skills are highly transferable, opening doors to careers in decarbonisation, circular economy, and sustainable supply chains.
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 rushed 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 facing an uncertain future. Suddenly, companies are asking: 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. Does this mean the end of ESG? Or is it rather an opportunity to reposition the field strategically?
The sudden regulatory shift has led many companies to treat ESG as a "luxury problem." If strict reporting requirements are reduced, there seems to be less immediate need to fund ESG teams. This is a short-sighted view. Sustainability is a key competitive advantage, not just a regulatory trend.
- 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. New directives are already in preparation: Green Claims Directive, Product Carbon Footprint, supply chain due diligence obligations.
- Sustainability as risk management. Companies that neglect ESG risk losing competitiveness in the long term.
The key question is not whether ESG will become obsolete, but how ESG managers can reposition themselves to demonstrate strategic importance.
1. ESG remains relevant
ESG is more than regulation
Many companies have implemented ESG not only because of legal requirements, but because it delivers real business value. Sustainability reduces risks, strengthens reputation, and builds trust with customers and investors.
Regulatory obligations have been relaxed with the Omnibus package, but ESG remains essential for long-term competitiveness. It is a strategic necessity.
The new thresholds narrow the scope of mandatory reporting significantly. Companies are now only required to report if they have more than 1,000 employees and more than €450m net turnover (both criteria must be met cumulatively). Many companies that previously expected an obligation now fall outside the scope entirely.
Now is the right time for strategic development
Reduced short-term reporting pressure creates the opportunity to build ESG structures more strategically. Companies can now move beyond compliance and develop long-term ESG strategies with real impact.
A sustainability strategy based on a double materiality assessment lets you systematically consider both internal risks and opportunities and external impact on the environment and society. This holistic approach enables strategic decisions grounded in evidence by prioritising relevant issues in a targeted way.
Voluntary sustainability reports in accordance with VSME also increase transparency, enhance comparability, and strengthen stakeholder confidence. They provide a structured basis for improving sustainability performance and achieving long-term competitive advantages. Note: the VSME is expected to evolve into the broader "VS (Voluntary Standard)" later in 2026, making it relevant for all companies with fewer than 1,000 employees or under €450m turnover that fall outside mandatory CSRD scope.
For ESG managers, this means now is the right time to position yourself as a strategic driver of innovation and transformation. Sustainability initiatives that go beyond mandatory reporting are more in demand than ever.
The next wave of ESG regulation is coming
Some reporting obligations have been temporarily reduced. That does not mean the end of ESG regulations. New requirements are already on the way:
- Green Claims Directive: stricter rules against greenwashing
- Product Carbon Footprint (PCF): CO2 balances for products become mandatory
- Ecodesign Regulation: environmentally friendly design of energy-related products
- Supply chain due diligence obligations continue to apply
Companies that neglect ESG now risk having to take hasty action later. Forward-looking companies use the time to expand their ESG strategies and prepare for future challenges.
From reporter to implementer
The ESG role has often been dominated by mandatory reporting. Collecting data, analysing it, converting it into reports. ESG must be more than that.
The task now is to implement sustainable measures:
- Making supply chains more sustainable
- Developing and realising climate neutrality targets
- Integrating the circular economy into company operations
- Implementing measurable CO2 reduction measures
Companies need ESG managers who are actively involved in sustainable transformation. Those who position themselves as strategic drivers now will be indispensable in the future.
A structured double materiality assessment is the foundation of any strong ESG strategy. Our Excel template guides you through the full process step by step.
2. The economic case for ESG
Sustainability as a competitive advantage
Sustainability is no longer a "nice-to-have." 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 reduce energy and material costs
- Increased investor confidence: investors are focusing more and more on companies with clear ESG strategies
ESG and financial performance
Studies show that sustainably managed companies perform better in the long term. Companies that develop a strong sustainability strategy have:
- Lower financial risks through forward-looking environmental and social management
- Better access to capital through sustainable investment programmes
- Greater resilience in times of crisis, as they are better prepared for regulatory and social change
Employer branding and the skills shortage
ESG is not only important to customers and investors. Sustainability is also a decisive factor for employees. Young talent prefers employers who take ESG seriously and actively implement it. Companies that position themselves as sustainable employers early find it easier to attract and retain skilled workers.
3. What to do if your company scales back ESG
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 across the business:
- Project management: the ability to plan and implement sustainability projects applies to many other areas
- Strategy development: ESG managers are used to drawing up long-term plans, a sought-after skill in many industries
- Communication and change management: sustainability requires persuasion, a skill that transfers to other strategic issues
These skills open up new career paths in areas such as circular economy, decarbonisation, and sustainable supply chains.
Sustainability-related career paths
If ESG is no longer a priority in your company, there are many alternative paths:
- Circular economy and recycling: resource conservation and innovative recycling processes are key future issues
- Decarbonisation and energy efficiency: companies are looking for specialists to help reduce their carbon footprint
- Sustainable procurement and supply chain management: transparency in global supply chains is a growing focus
Further training as a career booster
In addition to traditional CSRD training, specialising in new ESG topics can significantly improve your career opportunities. Key growth areas are:
- Green claims and anti-greenwashing strategies: stricter regulations are making communication and compliance experts increasingly in demand
- Climate risk management: companies need to understand and minimise the risks posed by climate change
- Carbon footprint accounting (PCF): reliable experts for calculating carbon footprints and developing reduction strategies are highly sought after
The CSRD Compass newsletter keeps you up to date. Sustainability podcasts also help you stay current with the latest topics.
Networking and increasing visibility
Visibility and a strong network are crucial for recognising new opportunities:
- Active participation in specialist conferences and ESG events
- Using 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.
4. Global ESG outlook: international developments and trends
How is ESG developing worldwide?
Europe is considered a pioneer with the CSRD and other ESG requirements, but the topic is developing dynamically in other regions. Investors and companies in the USA are increasingly focusing on voluntary ESG standards. In Asia, many countries are pursuing ambitious sustainability strategies, particularly on climate neutrality and the circular economy.
| Region | Key ESG development |
|---|---|
| USA | Large investors such as BlackRock focus on ESG criteria; states pursue varying approaches |
| China and Asia | China is planning extensive CO2 reduction measures; Singapore is building a sustainability centre for companies |
| Latin America and Africa | ESG awareness is growing, often linked to social issues such as fair working conditions and biodiversity protection |
New ESG opportunities in international markets
The international market offers exciting opportunities for ESG managers. Companies with global supply chains need expertise to navigate different ESG requirements across regions. Specialisations in international standards, reporting, and sustainable supply chain management open up valuable career paths.
- Sustainable financing: international banks and investors are increasingly applying ESG criteria when granting loans
- Regulatory navigation: ESG experts familiar with global guidelines are particularly in demand
- Sustainability consulting: many companies seek external consultants to adapt their ESG strategies to international standards
ESG is not just a European issue. Anyone who trains and networks internationally has excellent prospects in the sustainability sector.
5. Conclusion: ESG is not dead - it is evolving
The uncertainties around the Omnibus package and relaxed ESG requirements have led to short-term rethinking at many companies. The core message remains: ESG is not redundant. It is changing. Companies that see ESG as a strategic tool will benefit from it in the long term.
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 secure long-term advantages.
The role of ESG managers is changing. Strategic thinking and operational implementation are now required alongside reporting. The future belongs to those who can not only advise companies, but also implement concrete sustainability measures.
Further training, adaptability, and a strong network are crucial. Topics such as climate risk management, green claims, and carbon accounting offer new career opportunities. Regardless of short-term regulatory changes, ESG will remain a decisive factor in the long term.
If your company is still in scope after the Omnibus changes, our ESRS data points template helps you identify and manage all relevant reporting requirements efficiently.
Frequently asked questions about ESG managers and career prospects
Is ESG still relevant after the Omnibus package relaxed CSRD requirements?
Yes. Regulatory changes reduce mandatory reporting scope, but the underlying drivers of ESG remain firmly in place. Investors, customers, and employees continue to demand sustainable practices. New regulations such as the Green Claims Directive and Product Carbon Footprint rules are already on the way. ESG is evolving, not disappearing.
Which companies still have a mandatory CSRD reporting obligation after the Omnibus changes?
Since 18 March 2026, mandatory reporting applies only to companies with more than 1,000 employees and more than €450m net turnover. Both criteria must be met cumulatively. Many companies that previously expected an obligation now fall outside the scope entirely.
What skills should ESG managers develop to future-proof their careers?
Focus on areas that go beyond mandatory reporting: climate risk management, carbon footprint accounting, green claims compliance, and sustainable supply chain management are all high-growth specialisations. Strong project management, strategy development, and change management skills also transfer well to related fields such as decarbonisation and circular economy roles.
What is the double materiality assessment and why does it matter for ESG strategy?
A double materiality assessment identifies which sustainability topics are relevant to your company from two perspectives: the impact your business has on the environment and society (impact materiality), and how sustainability issues affect your business financially (financial materiality). It is the foundation of any credible ESG strategy and remains central to CSRD reporting even after the Omnibus simplifications.
