Omnibus I: when Europe hesitates, resilient companies move forward

Omnibus I: While regulation bogs down, resilient companies create value.

1. An unexpected vote that rekindles regulatory uncertainty

 On Wednesday, October 22, the European Parliament rejected the negotiating mandate (trilogue) on the package Omnibus I, by 318 votes to 309. This text aimed to simplify certain obligations arising from the CSRD (Corporate Sustainability Reporting Directive) and the CS3D (Corporate Sustainability Due Diligence Directive).

Its rejection postpones the plenary debate to November, delaying the prospect of a compromise on two major pillars of the European Green Deal.

In short: companies hoping for simplification of their ESG reporting or due diligence obligations will have to continue dealing with uncertainty—regarding formats, deadlines, and the level of detail required.

2. Behind regulatory uncertainty, an increased risk of inertia

 This rejection reveals a paradox: companies expect the regulation to provide both more clarity and fewer constraints, but this absence of political positioning makes any short- and medium-term strategic planning more difficult. The obligations for transparency on physical risks remain at the core of the European agenda, but without a clear timetable. For finance departments and risk managers, this creates a new risk: that of inertia.

 Waiting for "the white smoke" to come out risks falling behind on:

• identifying the most exposed assets and processes,

• assessing the cost of inaction and prioritizing investments,

• updating resilience indicators,

• and managing the cost of capital in a context of increasing uninsurability.

3. While Europe debates, the climate is already acting

 As Brussels bogs down in procedures, the autumn storms that are looming remind us that the climate does not negotiate. Floods, strong winds, and interruptions in activity will inevitably follow one another and weaken the supply chains and critical sites of companies that have not implemented anything.

 While some companies await the trilogue — this negotiation between the Parliament, the Council, and the Commission meant to bring political positions closer — American actors are moving ahead. According to the report Tailwind 2024, American public and private managers have invested more than twenty times what their European counterparts allocate to adaptation and resilience. A difference explained by a simple observation: in the United States, resilience is seen as a strategic investment to continue producing and preserving company value, not a regulatory constraint.

4. Adaptation creates measurable value

 The initial feedback from companies managing their financial exposure to climate risks is telling: adaptation generates tangible and measurable economic value :

• Companies that integrate physical risk into their management show up to +15% valuation gap compared to those that do not.

• Alert and continuity systems allow for up to 20% of losses avoided and 70% fewer supply disruptions.

• Every euro invested in resilience yields 8 to 13 euros of direct and indirect gains — in damages avoided, preserved productivity, and better insurability.

5. Transforming uncertainty into strategic and financial decisions

 The most high-performing companies do not just wait for the next directive: they proactively take control of their climate and financial exposure. Through robust diagnostics, actionable financial indicators (Expected Annual Loss, Climate Value at Risk, cost of inaction), and decision-making tools, they:

• anticipate regulatory expectations rather than endure them;

• measure their actual financial exposure, site by site, portfolio by portfolio;

• manage their resilience as a strategic asset;

• and enhance their transparency with investors, insurers, and partners.

These companies do not seek mere compliance: they manage their risk and build a sustainable competitive advantage.

6. The takeaway message: resilience remains a safe bet

The episode Omnibus I illustrates the difficulty of reconciling climate ambition with administrative simplification. However, it should not overshadow the fact that climate risk is financial risk.

The markets, insurers, and investors have already integrated it into their decisions.
Companies that choose to act today secure their profitability, investment capacity, attractiveness, and long-term value. They transform climate uncertainty into a leverage for sustainable and measurable performance.