ESG Omnibus: Throwing the baby out with the bathwater

Now that the EU has finalised the Sustainability Omnibus, EEM HUB NL reviewed an ING analysis on what the changes could mean for European banks. ING’s main message is that the package may reduce the reporting burden for organisations that fall out of scope, but it could also make ESG disclosures more complex for banks that remain in scope.

Background (as described by ING)

At the start of 2025, the European Commission proposed a major overhaul of the EU’s sustainability reporting framework. This triggered a year of intense debate, diverging proposals, and shifting political alliances. The resulting Sustainability Omnibus (also referred to as Omnibus I) was approved by the European Parliament in December 2025. According to ING, while many stakeholders welcome simplification and expect productivity benefits for corporates, the overall effect could be less favourable for European banks—particularly those still subject to ESG reporting requirements.

ING-Think-esg-omnibus-throwing-the-baby-out-with-the-bathwater.pdf

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