Lately, it has often been argued that sustainability and ESG are losing momentum. Some refer to “ESG fatigue,” others speak of a retreat by businesses and investors, while many interpret recent moves by the European Commission to simplify parts of the regulatory framework as a sign that sustainability is being downgraded.

The reality, however, is more complex — and far more important for businesses.

Sustainability and ESG criteria are not disappearing. On the contrary, they are becoming more practical, more measurable, and more closely linked to business viability. What is changing is not the direction of travel, but the way sustainability is implemented. It is moving away from broad communication promises and becoming an operational requirement that affects financing, supply chains, public tenders, customer trust, and long-term competitiveness.

In Europe, there are indeed efforts to simplify certain obligations related to corporate sustainability reporting and due diligence, particularly under the CSRD and CSDDD frameworks. But simplification should not be confused with retreat. Sustainability regulation is becoming more targeted, not less relevant. At the same time, new requirements linked to green claims, packaging, circular economy, emissions, and supply-chain transparency continue to reshape the market.

This means that companies should not interpret regulatory simplification as permission to delay action. On the contrary, the next phase will likely be stricter in substance, because businesses will increasingly be expected to prove what they claim, measure what they report, and demonstrate the impact of their policies.

A common mistake among business executives is to identify sustainability almost exclusively with compliance — and, in particular, with the obligation to publish a sustainability report. Compliance is important, but it is not the real objective. The real objective is business resilience.

Sustainability is now connected with access to capital, operational efficiency, risk management, customer confidence, employee attraction, participation in tenders, and the ability of a company to remain relevant in a changing market. In many sectors, ESG criteria are already becoming part of commercial relationships, lending decisions, procurement processes, and investor assessments.

This is especially important for SMEs. Even when a small or medium-sized company does not fall directly under the full scope of European sustainability reporting obligations, it may still be affected indirectly. Large companies will continue to request ESG-related information from their suppliers. Banks will continue to assess environmental and social risks. Customers will increasingly compare companies not only on price and quality, but also on credibility, transparency, and responsibility.

In other words, sustainability is no longer only a matter for listed companies or multinationals. It is gradually becoming a market-access condition for thousands of smaller businesses.

The data also show that companies themselves continue to see sustainability as an opportunity rather than a burden. According to Morgan Stanley’s Sustainable Signals survey, a very large majority of companies globally consider sustainability a driver of long-term value creation, while many now report that they are able to measure the return on their sustainability investments.

This point is critical. Sustainability is no longer assessed only in ethical or reputational terms. It is increasingly assessed through the language of business: cost reduction, energy efficiency, risk prevention, innovation, productivity, financing, and long-term financial performance.

For Greece, this shift has particular significance.

Greek entrepreneurship should not treat sustainability as another form of “European bureaucracy.” It should see it as a tool for competitiveness and outward-looking growth. Greek companies operating in tourism, shipping, energy, food production, construction, financial services, and exports will face growing pressure to provide credible information on emissions, governance, working conditions, resource use, social impact, and supply-chain practices.

This pressure will not come only from regulators. It will come from clients, banks, investors, international partners, public procurement processes, and larger companies that need reliable data from their value chains.

For many Greek SMEs, especially family-owned and B2B businesses, the challenge is not whether they will publish a formal sustainability report. The challenge is whether they will be able to demonstrate, in a credible and measurable way, that they understand the risks and opportunities of the new environment. Those that delay may find themselves excluded from financing opportunities, partnerships, tenders, or international supply chains.

The period ahead will be more demanding for three main reasons.

First, sustainability policies without data will no longer be enough. General statements, broad commitments, and well-written reports will have limited value unless they are supported by measurable targets, reliable indicators, and clear progress.

Second, greenwashing will carry greater risk. Vague environmental claims, exaggerated communication campaigns, and promises without evidence will increasingly expose companies to legal, reputational, and commercial consequences.

Third, sustainability is moving from the communications department to the core of management. It is no longer only about an annual report or a corporate social responsibility campaign. It affects procurement, production, energy use, logistics, human resources, governance, financing, and overall strategy.

What we are experiencing today, therefore, is not the end of sustainability. It is the end of superficial sustainability.

The companies that treated ESG as a trend, a communications exercise, or a box-ticking obligation will find the next phase difficult. Those that understand it as a necessary business transition will be better positioned to attract capital, win clients, manage risks, and grow.

For Greek SMEs in particular, the message is clear: sustainability is not something to be addressed later. It is already becoming part of competitiveness today.

Read here full article that was published in OT