Companies welcome the relief provided by the EU Omnibus Package, but face significant challenges.

Sustainability issues are now largely anchored in the strategic planning of Austrian companies. More than half of the companies (52%) implement comprehensive activities in all ESG areas and have already produced a sustainability report (51%), while only eight percent have so far undertaken only minimal sustainability activities. Sustainability reporting has thus arrived in corporate practice and is increasingly developing into an integral part of strategic management.

The standards used show a clear trend towards adapting to the new planned regulatory requirements. Over half of the companies (52%) already report according to the European Sustainability Reporting Standards (ESRS), while 41% continue to use the established GRI guidelines. „This illustrates that many companies are aligning their processes with the Corporate Sustainability Reporting Directive (CSRD) while simultaneously relying on familiar frameworks to ensure consistency in reporting. The transition to ESRS is a huge undertaking for many companies, but also a great opportunity to place their sustainability strategy on a solid foundation,“ explains Mirjam Ernst, Director of Sustainability Services at EY denkstatt.

These are the results of an omnibus survey conducted by the auditing and consulting firm EY denkstatt, EY's sustainability consultancy. Over 200 employees of Austrian companies were surveyed. Of the participating companies, 72 percent were required to report under the CSRD prior to the omnibus package.

Major hurdles: data, complexity, and resources
However, implementation remains fraught with significant challenges. Two-thirds of companies (67%) struggle with a lack of relevant data when preparing their sustainability reports. Added to this is the high complexity of the ESRS standards, which is perceived as a considerable hurdle by 60%. More than half (57%) also see uncertainty in the regulatory framework as a problem. The lack of human and financial resources (51%) also has a particularly strong impact, significantly hindering the preparation of reports for many companies.

Companies cite several reasons for not yet producing a sustainability report: the reporting requirements are not clearly defined, the concrete benefits for their own business remain difficult to assess (17%), and sustainability, while part of their business practices, is not yet documented in a formal report (26%). However, the most frequently cited reason given by companies that have not yet produced a sustainability report is the lack of a legal requirement (70%).

Optimization potential: data, culture and know-how
Regarding improvement approaches, three-quarters of the companies (74%) see the greatest potential in the implementation of efficient data systems. Six out of ten companies (61%) also want to expand internal and external ESG communication, while 45% are focusing on increased training and coaching of employees.

„The results clearly show where the pain points lie: data availability, complexity, and resource scarcity are the key hurdles that companies must overcome. Added to this is regulatory uncertainty: almost six out of ten companies experience ambiguity and uncertainty regarding legal requirements and regulations. Here, it is crucial to overcome several obstacles, review processes for sustainability reporting (CSRD) and supply chain due diligence (CSDD), and focus on the core requirements. While the draft EU Omnibus Package provides some relief, compliance remains challenging,“ emphasizes Peter Linzner, Partner at EY denkstatt and Solution Leader for Sustainability at EY.

The omnibus package brings opportunities, but also challenges.
The planned EU omnibus package, an amendment to the EU Directive on Sustainability Reporting, is intended to ease the burden on companies entering the new reporting requirements through transitional arrangements and adjustments. The majority of Austrian companies (721) were already affected by the CSRD before its introduction, and almost all (901) have actively engaged with the planned changes and regulations. Respondents identified the most significant impacts as the raising of thresholds (561), the application of simplified ESRS (451), and extended transition periods (381).

Many companies intend to use the time gained through deadline extensions to integrate ESG criteria more consistently into business processes and decision-making structures (57%) while simultaneously strengthening their sustainability communication (45%). Almost one in three companies (29%) plans to focus on developing and updating concepts, targets, and KPIs, while 27% intend to expand their sustainability strategy and action planning.

„The omnibus package gives companies some breathing room, but it doesn’t change the fact that reporting needs to become more professional and systematic,“ said Mirjam Ernst. „Those who invest now in structures, systems, skills, communication, and culture will benefit in the long run – not only from a regulatory perspective, but also in the competition for trust and reputation.“

Cultural change and focus on data quality

In addition to structural and procedural adjustments, cultural change within companies is also gaining importance. Alongside the integration of ESG criteria into business processes (57%), the focus is particularly on transparent communication of ESG goals and achievements within the company and to external stakeholders (45%). More than one in four companies (28%) plans to foster a corporate culture that permanently embeds sustainable behavior. Many rely on clear role models from managers (25%), supported by training and coaching programs for employees (34%). Incentive systems that reward sustainable behavior are also used by 14% of companies to promote the implementation of ESG goals.

Another key focus is on improving data quality. Four out of five companies (80%) have committed to optimizing their sustainability indicators. Environmental indicators are particularly relevant for companies, with nine out of ten (90%) considering them indispensable in the future. Social indicators (70%) and governance practices (59%) are also gaining significant importance. Nearly half (47%) plan to rely on technological support, while a substantial proportion (33%) intend to invest in modern IT systems that enable structured data collection and analysis. At the same time, many companies desire clear and practical guidelines as well as industry-specific templates (42%) to fulfill their reporting obligations even more efficiently.

„Data quality will be key in the coming years for producing credible and reliable sustainability reports,“ emphasizes Peter Linzner. „Without digital systems and a consistent data framework, companies will hardly be able to efficiently fulfill their reporting obligations.“