In today’s rapidly evolving business landscape, sustainability has transitioned from being a mere option to an essential component for corporate survival and growth. Companies that fail to align with emerging Environmental, Social, and Governance (ESG) standards risk exclusion from the market. Treating sustainability as a public relations strategy is no longer viable; it has become a strategic imperative.Center for Sustainbability & Excellence+2Center for Sustainbability & Excellence+2Center for Sustainbability & Excellence+2

The European Union has set clear directives: ESG criteria mandated by banks, legislation such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), along with the EU Taxonomy and the Omnibus Directive, are reshaping the business environment. Companies unable to substantiate their sustainability claims face penalties, loss of trust, diminished investor interest, and potential marginalization.

ESG: The New Language of Profitability

The 12th Annual Research by the Centre for Sustainability and Excellence (CSE) in Greece for 2024 reveals:

• Over 160 large and medium-sized Greek companies, both listed and unlisted, publish annual Sustainability Reports.Center for Sustainbability & Excellence
• Companies with high ESG performance are not just “better”—they are more attractive, future-ready, and notably more profitable.Center for Sustainbability & Excellence
• Greek businesses investing in ESG strategies experience higher growth, improved access to investment capital, and greater resilience.
• 94% adhere to GRI Standards, and 89% align their strategies with the United Nations Sustainable Development Goals (UN SDGs).
• However, only 32% ensure external assurance of their reports—a significant credibility gap in an era where transparency is non-negotiable.

Greece: Progress and Challenges

In Greece, 48% of listed companies submit standalone Sustainability Reports, indicating positive momentum. Nevertheless, the real challenge lies in aligning with the new European framework. Leading sectors such as transportation, food, energy, and information technology must become pillars of transformation rather than isolated exceptions. LinkedIn+2Center for Sustainbability & Excellence+2Mightybytes+2Center for Sustainbability & Excellence

The Omnibus Directive: A Wake-Up Call

The Omnibus Directive is not merely another EU regulation—it serves as a clarion call for businesses that still view sustainability as an optional expense. With stringent requirements, especially for large enterprises, clear language, and tangible penalties for misleading ESG statements, the Omnibus Directive transforms transparency into both a legal and strategic obligation.

Recently, the EU proposed amendments to key legislations like the CSRD, CSDDD, and EU Taxonomy, aiming to simplify sustainability rules and reduce administrative burdens for businesses, ultimately enhancing the EU’s competitiveness.

Strategic Imperatives for Businesses

Today, companies—regardless of size or listing status—must invest in:

• Systematic ESG strategies with measurable objectives.
• Reliable, transparent Sustainability Reports compliant with GRI, ESRS, and the new Omnibus requirements.
• Elimination of greenwashing practices.

Sustainability is a strategic choice. The market is evolving. Investors are shifting. The rules have changed.

Nikos Avlonas is the President of the Centre for Sustainability and Excellence (CSE) and a visiting professor at the Athens University of Economics and Business (IMBA). He frequently contributes articles on business, climate change, and sustainable development (ESG) in both Greek and international publications.Center for Sustainbability & Excellence