• 90% of European companies removed from CSRD scope plan to continue or expand sustainability reporting, according to a new osapiens survey of 403 large firms.
• 88.9% expect to increase investment in reporting technology and automation within the next 12 months.
• Sustainability data is now embedded in corporate decision making, influencing operations, innovation, capital allocation, and supply chain risk management.

European companies are largely choosing to continue sustainability reporting even after regulatory changes removed many from mandatory disclosure requirements under the EU’s Omnibus simplification package.

A new study by enterprise software firm osapiens, titled Beyond Compliance: Sustainability Reporting After the Omnibus, surveyed 403 European companies with more than 1,000 employees. The findings show that 90% of organizations no longer required to comply with the Corporate Sustainability Reporting Directive still plan to maintain or expand their sustainability reporting programs.

For many firms, sustainability disclosure has moved beyond regulatory compliance and into the core of corporate governance and risk management.

The survey found that 86% of companies removed from the CSRD’s scope remain confident in their ability to produce reports aligned with CSRD standards. At the same time, nearly nine in ten respondents expect further investment in reporting infrastructure, with 88.9% anticipating increased spending on automation tools and data systems in the next year.

Reporting Embedded in Financial Processes

The research suggests that sustainability reporting is already deeply integrated into corporate finance functions. About 90% of surveyed companies say sustainability metrics are now partially or fully embedded within their financial reporting processes.

Executives are increasingly using sustainability data to inform high level business decisions. According to the study, 52.8% of respondents use sustainability reporting to guide operational and resource planning, while 47.7% apply the data to innovation and process design. A further 38.1% said sustainability metrics influence financial planning and investment decisions, with the same proportion using the information to assess supply chain risks.

Companies also identified broader strategic benefits from structured sustainability reporting. Nearly half of respondents said the primary advantage is improved visibility into climate, operational, and supply chain risks. Others cited stronger investor confidence generated by auditable sustainability data and improved alignment between financial and sustainability decision making.

Strategic Value Beyond Regulation

The EU’s Omnibus I package was designed to simplify reporting rules and ease administrative burdens on companies by narrowing the scope of several sustainability disclosure frameworks, including the CSRD.

Yet the survey suggests that the market incentives driving sustainability reporting remain strong, even when legal obligations are reduced.

Companies increasingly rely on sustainability disclosures to meet investor expectations, comply with supply chain transparency requirements, and maintain credibility with customers and business partners. In this environment, reporting functions as both a governance tool and a signal of operational resilience.

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Andreas Rasche, Professor of Business in Society at Copenhagen Business School, said the findings illustrate how corporate attitudes toward sustainability reporting have evolved.

“The results indicate a clear preference for reporting continuity among larger firms that were exempted under the Omnibus I package. This development brings voluntary reporting and beyond-compliance strategies firmly to the forefront of the future sustainability agenda.”

The Emerging Sustainability Paradox

Despite strong short term commitment to sustainability reporting, the research highlights a structural challenge that companies may face in the coming years.

While 90% of organizations intend to continue reporting after being removed from CSRD requirements, 84.5% believe that reduced regulatory scrutiny could ultimately lead to fewer internal resources being allocated to sustainability reporting activities.

Budget constraints were identified as the most significant barrier, cited by 43% of respondents. Fragmented data systems were mentioned by 40.7%, while 31% pointed to weak technology integration. Unclear ownership of sustainability reporting responsibilities was also flagged as a common challenge.

The study describes this tension as a “sustainability paradox.” Corporate leaders increasingly recognize the strategic value of sustainability data, yet reporting programs must compete internally for funding and organizational attention.

Automation and centralized data platforms are expected to play a critical role in resolving that tension, particularly as companies navigate an expanding ecosystem of voluntary frameworks including VSME, CCF, GRI, and ISSB.

Market Expectations Continue to Rise

Alberto Zamora, Co-Founder and Co-CEO of osapiens, said the survey results demonstrate how corporate thinking has shifted as sustainability considerations become embedded in financial strategy.

“For the past years, the regulatory trajectory was largely one-directional: more requirements, more companies in scope. The Omnibus package has changed this direction. However, our data shows that when the obligation is removed, companies don’t step back. They have realized that reporting is no longer merely a compliance exercise, but a part of how they understand risk, allocate capital and grow sustainable.”

For executives and investors, the findings point to a broader shift in how sustainability information functions inside corporations. Even as regulatory frameworks evolve, structured reporting is increasingly tied to financing access, supply chain participation, and operational strategy.

Across Europe and beyond, sustainability disclosure is becoming less about legal obligation and more about market expectation. As companies compete for capital, talent, and partnerships, transparent ESG data is emerging as a core component of corporate credibility and long term competitiveness.

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