Geopolitical tensions, economic uncertainty and the EU’s new Omnibus package have shaken the ESG landscape. Many are finding that sustainability is slipping down the agenda – precisely at a time when responsible business practice matters most. Here are four insights to help you keep the momentum and maintain ESG as a competitive parameter in turbulent times.
“You can’t have a healthy business in an unhealthy world.”
It’s a mantra I’ve carried with me for years, and here in 2025, it feels more relevant than ever.
Geopolitical tensions, economic uncertainty and the EU’s Omnibus package have sent shockwaves through the ESG field. Many are finding that sustainability is being pushed down the agenda, precisely at a time when responsible business practice matters more than ever.
In this article, you’ll find four key insights on how we can maintain momentum and ensure that ESG remains a true competitive parameter, even in shifting times.
A gut punch for ESG professionals
The uncertainty is real. ESG specialists are frustrated: they’ve invested time and resources in compliance, built systems, trained colleagues – only to be told to put everything on hold.
Some are openly questioning their future role, as leadership teams deprioritise ESG when neither regulation nor market signals feel urgent enough to keep the pressure on.
And that’s not the only cause for concern.
Slowing down the green transition
At a recent event on the Omnibus package, an ESG director from the insurance sector called the narrowing of due diligence “a catastrophe for human rights”. Because many of the most critical issues sit deep in the supply chain.
Other ESG leads share fears that the green transition may slow, as companies shift scarce resources away from climate and environmental initiatives to cover other business priorities.
The criticism is clear: less responsibility, weaker ambition, and a risk of a more superficial approach to both social and environmental actions.
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From ESG reporting to ESG action
Not everyone views Omnibus as a setback.
For SMEs, who felt pressured by reporting demands from larger partners, the changes come as a relief.
As one sustainability manager in an SME put it:
“We want to work with sustainability, but we don’t have a whole compliance department. Now we can focus on action rather than paperwork.”
Many also see a positive side effect in reduced bureaucracy and more balanced supplier dialogues. In short: the ESG field is responding with mixed emotions.
Low flame or full speed ahead?
So the question naturally arises: Is now really the time to turn down the ESG flame?
I believe this moment offers an opportunity. A welcome pause from reporting checklists, and a chance to look up and ask how ESG can truly create value.
We can use this period to strengthen the strategic side of ESG: exploring new circular solutions, deepening supplier partnerships or strengthening reputation through visible, responsible action.
(Related: Leadership in a Geopolitical Era – from Compliance to Courage)
4 key insights to keep your ESG momentum alive
Thankfully, many organisations are continuing their ESG efforts because their commitment is rooted in values rather than compliance alone.
Here are four essential insights that can help businesses maintain momentum despite Omnibus, and the unpredictable world around us.
Insight #1: We need a new business map
Today’s landscape calls for an updated strategic approach to ESG.
Yes, it’s about understanding new regulations – but also about using that knowledge as a springboard for innovation and improvement.
A proactive ESG mindset helps companies not only meet requirements but strengthen competitiveness and market position.
Insight #2: Geopolitics is rewriting the ESG rulebook
The current geopolitical climate shows that ESG can no longer be confined to local compliance.
Businesses must think globally and understand how political tension, trade barriers or sanctions can shape their business models.
A clear value base and strong ethical compass are essential when navigating a world where neutrality is rarely an option.
Insight #3: Market expectations for sustainability aren’t disappearing – they’re evolving
Even if leadership teams temporarily downplay ESG due to Omnibus, geopolitics or economic pressure, market expectations haven’t faded.
Customers and investors, both consumer and B2B, continue to demand responsible practices and sustainable products.
Organisations that keep a steady hand on their ESG efforts will be better positioned for tomorrow’s market.
Insight #4: Momentum requires leadership and courage
Staying committed to ESG takes leadership that dares to take a stand.
It’s not only about following legislation, but about going further, setting clear goals and acting on them.
True ESG leadership inspires employees and stakeholders through a credible, values-based approach. It also means holding the line when the world around you wavers.
We see this in leaders like Dariush Rezai, CEO of Sweco Denmark, whose strong values have strengthened the company’s credibility and reputation. A shift from compliance to courage.
ESG is a competitive parameter
Ultimately, this moment invites us to strengthen ESG in strategic, value-creating ways.
Market expectations aren’t going anywhere. In fact, they’re more pronounced than ever.
If we embrace ESG as a genuine competitive parameter, we can build businesses that do well – and do good – creating value for both society and the bottom line.
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