- Sustainability reporting (CSRD, ESRS) creates transparency on paper. Sustainability communication turns that data into stories that reach real stakeholders.
- The Omnibus Directive has been in force since 18 March 2026: from financial year 2027, mandatory CSRD reporting applies only to companies with more than 1,000 employees and more than 450m euros in net turnover. Smaller companies are outside scope but still face stakeholder pressure.
- The EmpCo rules have applied in Germany via the UWG since 27 September 2026. Generic claims like "sustainable" are prohibited without proof, and "climate neutral" based on offsetting is banned per se.
- Effective communication formats range from website and social media to employee town halls and stakeholder dialogues.
- Companies that communicate sustainability honestly and precisely build credibility, strengthen employer branding, and differentiate themselves in the market.
In recent months, much in the world of sustainability has revolved around reporting: discussions about the CSRD, new EU Omnibus proposals, and initial practical implementations in companies. This means enormous additional effort and, in some cases, a completely new dimension of transparency for many businesses.
Sustainability is not limited to tables, key figures, and mandatory reports. Even if not all companies are directly affected by the reporting obligation, all face the same challenge: How do you showcase what you are already doing? How do you credibly communicate your efforts to customers, employees, investors, or the public?
This is where sustainability communication comes in. It is the "more" beyond mere reporting. An opportunity to tell stories, build trust, engage stakeholders, and make sustainability a tangible part of corporate identity.
This sustainability communication overview looks at the practical question: How can effective sustainability communication be achieved, and what needs to be considered?
Sustainability Reporting: The Mandatory Part
In recent months, the topics of CSRD and ESRS, the EU Omnibus, and the voluntary VS (formerly VSME) have dominated the headlines.
Since 18 March 2026, the Omnibus Directive has been in force: from financial year 2027, the mandatory CSRD reporting obligation applies only to companies with more than 1,000 employees and more than 450m euros in net turnover. Both criteria must be met. Smaller companies fall outside the mandatory scope, but face growing pressure from customers, business partners, and investors regardless.
The voluntary standard VS (formerly VSME) has been in force as Delegated Regulation (EU) 2026/1560 since 24 September 2026. It is open to all companies not subject to CSRD reporting, not just SMEs, that want to report voluntarily or are asked to by their supply chain partners.
What is special about sustainability reporting is its clear character: fact-based, structured, and strongly tied to regulatory requirements. It creates transparency on paper. Comparable and verifiable.
Numbers alone rarely create emotional connection or motivation. This creates a communication gap: The report is mandatory for some companies, but it does not answer the central question of how sustainability is lived in everyday life.
Sustainability communication turns data into stories, translates facts into messages, and opens dialogue with stakeholders.
Sustainability Communication: The Opportunity
While reporting primarily provides numbers and facts, sustainability communication opens up the space to bring these contents to life. It is aimed not at auditors or authorities, but at the people surrounding the company: customers, employees, investors, partners, and the public.
Sustainability communication tells stories, makes progress visible, highlights challenges, and invites dialogue. It creates closeness, trust, and identification. Things that a sober report alone cannot achieve.
Those who not only document sustainability but actively communicate it, transform obligation into distinction. This sustainability communication overview shows that it is a central building block for credibility and differentiation in the market.
Why Reporting Alone Is Not Enough
A sustainability report according to CSRD or the VS fulfills a clear function: it creates transparency and comparability. Stakeholders expect more today. They want to understand what stance a company takes, what values it represents, and what contribution it makes.
Limiting yourself to reporting alone wastes potential:
- Customers want to know how sustainability specifically improves their product.
- Employees seek orientation and meaning, not just key figures.
- Investors increasingly focus on the credibility of the strategy, not just the data.
- Society and media react to stories and clear positioning, not to tables.
Sustainability communication answers the "why" questions that a report cannot. It ensures that sustainability is perceived as part of the company's identity and future viability, not just as a regulatory necessity.
Legal Framework: What You Can and Cannot Say
Whoever communicates sustainability assumes responsibility, both towards stakeholders and in a legal sense. The line between authentic communication and potential greenwashing is narrow. The EU wants to ensure that consumers receive clear, verifiable statements, not empty promises.
With the EmpCo Directive and the proposed but now blocked Green Claims Directive, there is one binding and one merely proposed framework that determine how sustainability may be presented in communication.
EmpCo Directive: In Force Since 2024, Binding Since September 2026
- In force since March 2024, implemented in Germany by the Third Act Amending the UWG (Federal Law Gazette 2026 I No. 43), binding since 27 September 2026.
- Goal: clear rules to protect against greenwashing and social washing.
- Generic terms such as "sustainable" or "environmentally friendly" are prohibited without recognised excellent environmental performance; "climate neutral" based on offsetting is banned per se.
- Statements such as "climate neutral by 2030" are only permissible with a detailed, realistic implementation plan and independent verification.
- Violations risk significant fines and considerable reputational damage.
The German implementing act is available in the Federal Law Gazette (in German).
Status of the Green Claims Directive
The Green Claims Directive was proposed as a supplement to EmpCo, with even stricter proof requirements. Trilogue negotiations were ongoing at the beginning of 2025, but on 20 June 2025 the Commission announced its intention to withdraw the proposal. Formally it is still pending, but the procedure is blocked. Companies should still monitor developments, as the discussion shapes the market and stricter standards remain possible in the long term.
Get a clear analysis of your sustainability communication and concrete recommendations for improvement. Compact workshop format.
Opportunities and Practical Approaches
Regulation sets clear guardrails. Within these limits, a wide range of possibilities opens up. Sustainability communication can become a real opportunity to build trust, differentiate your brand, and inspire employees.
Formats and Channels
- Website and social media: showcase current projects, progress, and daily insights.
- Employee communication: internal newsletters, workshops, or town halls to embed sustainability in the culture.
- Products and services: highlight sustainability aspects transparently on the product itself or in the sales process.
- Dialogue formats: stakeholder dialogues, panels, or customer feedback rounds create closeness and resonance.
Storytelling Instead of Columns of Numbers
Stakeholders want comprehensible stories, not mere blocks of facts. Successful sustainability communication means openly addressing challenges and learning processes. That appears more credible than polished messages.
Added Value for Your Company
- Employer branding: sustainability makes employers attractive to talent.
- Brand reputation: precise communication strengthens trust with customers and partners.
- Investor relations: shows future viability and reduces perceived risk.
- Customer loyalty: sustainability as a distinguishing feature in competitive markets.
From Obligation to Opportunity
Sustainability reports, whether mandatory according to CSRD and ESRS or voluntary, create transparency. They alone are not enough to truly reach stakeholders. This sustainability communication overview shows how sustainability can become tangible through communication: it translates facts into stories, creates dialogue, and strengthens trust.
The legal frameworks, such as the EmpCo Directive, set clear limits. Only precise, verifiable statements are allowed. This binding nature also offers an opportunity: those who carefully review and honestly design their communication gain credibility rather than losing it. The EmpCo tools in our overview help with that review.
Communication is a strategic success factor. It helps make sustainability visible as part of corporate identity, and differentiates you in the market.
Frequently asked questions about sustainability communication
Who still has a mandatory reporting obligation after the 2026 Omnibus changes?
The Omnibus Directive has been in force since 18 March 2026: from financial year 2027, mandatory CSRD reporting applies to companies with more than 1,000 employees and more than 450m euros in net turnover. Both criteria must be met cumulatively. Smaller companies are outside mandatory scope but still face reporting pressure from customers and investors.
What is the difference between sustainability reporting and sustainability communication?
Sustainability reporting is fact-based, structured, and tied to regulatory requirements. It creates comparability and is aimed at auditors and authorities. Sustainability communication brings that content to life for real stakeholders: customers, employees, investors, and the public. It turns data into stories and invites dialogue.
What does the EmpCo Directive mean for our marketing materials?
Since 27 September 2026, generic claims like "sustainable" or "eco-friendly" are prohibited without recognised excellent environmental performance, and "climate neutral" claims based on offsetting are banned per se. Statements about future targets need a detailed, realistic implementation plan with independent verification. There is no statutory transition period, so companies should audit their existing marketing language now to avoid warnings and reputational damage.
Can smaller companies outside the CSRD scope still benefit from sustainability communication?
Yes. Stakeholder pressure exists regardless of mandatory scope. Customers, business partners, and investors increasingly align their expectations with sustainability performance. Voluntary reporting using the VS (formerly VSME) gives smaller companies a structured foundation for credible communication.
