By Laura Zizzo, Founder & Chief Strategy Officer at Manifest Climate
The world of sustainability reporting never stays still. Just when businesses were starting to wrap their heads around the Corporate Sustainability Reporting Directive (CSRD), the European Union introduced an omnibus bill that could change its scope and slow down implementation. But despite the uncertainty, one thing remains clear: the need for reliable, decision-useful ESG data isn’t going away.
I’ve spent my career at the intersection of climate law, finance, and regulation, and I’ve seen these cycles before. While shifts in policy can cause hesitation, the broader trend remains: businesses and investors need better climate risk data to make informed decisions. So, even as CSRD’s specifics evolve, its importance remains firmly intact.
CSRD is still relevant—beyond compliance
The CSRD was never just about ticking regulatory boxes. The disclosure of the material data it mandates is essential for decision-making across underwriting, investment, and long-term business strategy. Even if the omnibus bill scales back the regulation or slows its rollout, the core intent—providing high-quality ESG information to inform management and investment decisions—remains a business imperative.
From my perspective, companies should avoid the trap of seeing CSRD as just another compliance exercise. The more companies embrace ESG data as a tool for managing financial risks and identifying opportunities, the more competitive they will be. Regulation or not, climate risk is business risk.
This is something I’ve seen play out firsthand. Many businesses are already using CSRD-aligned data even if they aren’t directly subject to the regulation. Companies looking to attract investment or manage long-term risk are voluntarily aligning with the standard because it makes sense. The more structured and transparent ESG data is, the easier it is to integrate into business planning, underwriting, and investment strategies.
The omnibus bill: A shift, not a reversal
The omnibus bill is a signal, not a stop sign. It reflects a political balancing act—aimed at addressing competitiveness concerns of European businesses while maintaining momentum on climate risk disclosure. What it doesn’t do is eliminate the need for transparency. If anything, it reinforces the broader global trend toward standardized ESG reporting.
While implementation might slow down, the long-term direction is still clear: investors, regulators, and markets want better climate and ESG data. Companies that delay preparation risk falling behind, regardless of whether CSRD applies to them today or not.
Another critical point here is that even if some companies fall outside CSRD’s scope due to these potential changes, the market expectation for strong ESG disclosure remains. Many of the investors I speak with emphasize that climate risk is business risk, and they aren’t just relying on regulatory mandates to make decisions. They want clear, consistent ESG data regardless of formal compliance obligations.
The global standardization of ESG reporting
Even companies outside the EU are paying attention to CSRD. It’s quickly becoming a best-practice framework, much like the Task Force on Climate-related Financial Disclosures (TCFD) before it. Investors want standardized, comparable data, and CSRD has set the bar.
This push for interoperability across jurisdictions is critical. I’ve had conversations with global firms struggling to align different reporting frameworks across markets. The reality is, even if CSRD’s scope narrows, businesses will still need to align with global expectations for transparency and risk disclosure. The trend is moving toward clarity, not away from it.
And the push for alignment isn’t just about investors. Executives I’ve spoken with are frustrated by the fragmentation of ESG reporting requirements across different jurisdictions. The more consistent and interoperable standards become, the easier it is for companies to integrate ESG considerations into their business planning without drowning in complexity. Standardization of climate and ESG-related reporting, just like standardization in core financial reporting, will allow organizations to consistently tell their story and be comparable across jurisdictions. It’s critical that this standardization and decision-useful focus of disclosures continues, and I believe it will.
AI-driven ESG analysis: The only way forward
One of the biggest challenges companies face is keeping up with changing data and requirements set by both regulation and market expectations. The days of manually tracking ESG reporting requirements are over—there’s just too much complexity. That’s why vertical AI for ESG research and analysis is becoming indispensable.
The key isn’t just having data—it’s knowing what to do with it. I’ve had conversations with firms that have had to build their own internal solutions to manage multi-jurisdictional ESG data, simply because there wasn’t a tool in the market that met their needs. This is a major gap and one of the main drivers behind why I founded Manifest Climate and have been pushing on this issue for years. AI-driven solutions help streamline and simplify ESG data analysis, ensuring professionals can focus on strategy rather than manual research and compliance checklists.
It’s been heartening to see the leading consulting firms, financial institutions, and public companies we work with use Manifest Climate to assess risks, uncover opportunities, and integrate ESG considerations into their core business strategies, supported by cutting edge technology and SME-expertise. We developed these AI-powered tools for internal use when we were a consulting firm, and we’re now seeing our clients get the same kind of leverage, insights, and time back in their day.
Planning for uncertainty
Yes, there’s uncertainty around how CSRD will ultimately be implemented. But businesses that wait for complete regulatory clarity before acting are taking a risk. The best approach? Build resilience. Adaptability is going to be the defining characteristic of successful companies in the ESG space.
The reality is that climate risk is already shaping markets. Wildfires, floods, and supply chain disruptions aren’t waiting for regulators to finalize disclosure rules. Companies that proactively integrate ESG considerations into their strategies will be better positioned to weather both physical climate risks and regulatory shifts.
I’ve also heard concerns that some companies are slowing down their compliance efforts because of the uncertainty. That’s a risky approach. The omnibus bill isn’t law yet, and even if it passes, CSRD will still be relevant as the benchmark for high-quality sustainability reporting. Regulatory landscapes change, but the fundamental need for ESG data doesn’t.
Investors want clarity; companies must deliver
Investor reactions to ESG reporting are mixed. Some see the value in ESG data for portfolio management, while others find the reporting requirements burdensome. But one thing is clear: investors need clarity, and companies that provide it will have the advantage.
At Manifest Climate, we see this every day. The businesses that take ESG reporting seriously aren’t just checking a box—they’re strengthening their position in the market. They’re aligning with investor expectations, managing risks more effectively, and gaining a competitive edge.
The interoperability challenge and opportunity
One of the biggest gaps in the market today is interoperability between ESG reporting frameworks. Companies operating across jurisdictions struggle to align different regulatory requirements. I recently spoke with a global financial firm that had to build its own internal solution just to manage ESG data across different regulatory regimes. It’s not sustainable (or efficient) for each organization to do independently, and not possible for smaller or less-resourced companies.
This is where AI-powered solutions like Manifest Climate add real value. Businesses need tools that ensure consistency and comparability across multiple frameworks—whether it’s CSRD, the International Financial Reporting Standards (IFRS), or California’s climate disclosure rules. The need for standardized, interoperable information sharing isn’t going away—even if it’s being driven by risk and reputation concerns rather than regulatory requirements
Final thoughts: The future is still clear
Regulatory changes like the omnibus bill might create uncertainty, but they don’t change the underlying reality: ESG data is a business necessity. Whether mandated by law or driven by market expectations, companies that take climate risk and other material sustainability issues seriously will be the ones that thrive.
At Manifest Climate, we’re helping businesses make sense of this shifting landscape. Our platform empowers companies to stay ahead—turning complex ESG data into actionable insights. Telling a consistent and comparable story, to internal teams and external stakeholders will empower better outcomes. Because in an era of uncertainty, the best strategy isn’t waiting—it’s preparing.
No matter how CSRD evolves, the businesses that embrace transparency, adaptability, and strategic ESG thinking will come out ahead. And that’s a future worth planning for.
We made Manifest Climate to simplify reporting compliance and ESG research
Manifest Climate was originally a consulting firm. In our work as climate consultants, it became obvious to us that helping clients manage multiple reporting requirements and make sense of disclosures was extremely time-consuming, leaving little time for genuine climate action.
We built AI-powered tools to streamline internal processes and relieve overburdened teams. With Manifest Climate, organizations can accelerate ESG research and automate manual analysis, like gap assessments across multiple standards and frameworks. Our expert-crafted AI produces rapid insights and actionable information, reducing manual efforts and giving time back to focus on higher impact activities.
Book a demo to see how Manifest Climate can help your team rapidly analyze disclosures to uncover ESG insights, comply with reporting requirements, and effectively manage risk.
