In February 2025, The European Commission published the first Omnibus package, known as the “Simplification Omnibus,” to reduce the administrative burden of sustainability reporting for companies and boost competitiveness aimed to streamline sustainability reporting and raise the competitiveness of EU companies. These proposals refine and consolidate existing sustainability and environmental regulations to improve efficiency and reduce administrative burdens.

The first package focuses on:

• Improving sustainability reporting to make it more accessible and efficient.
• Simplifying due diligence to support responsible business practices.
• Strengthening the Carbon Border Adjustment Mechanism (CBAM) for fairer trade.
• Expanding access to European investment programs.

This package proposes amendments to key directives, including the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), CBAM, and the EU Taxonomy. If adopted by the European Parliament and the Council, these changes will reshape the sustainability job market with increasing demand for ESG professionals, compliance experts, and sustainability strategists.

Overall, the package outlines plans to ease the EU’s sustainability reporting requirements, aiming to reduce the administrative burden by 25% overall and by 35% for SMEs by the end of the mandate. The EU estimates that, if adopted as proposed, these changes could result in annual savings of EUR 6.3 billion in administrative costs.

This article examines how these regulatory shifts could impact ESG and sustainability jobs across EU-based companies and their international subsidiaries.

Key regulation changes and their direct implications on the Sustainability Job market

The Omnibus Regulation introduces several key amendments to existing sustainability directives, which many players in the market view as a rollback of core legislation. Although initially seen as an attempt to readjust as the regulation moves into implementation stage, these changes could limit investors’ access to decision-useful data and create legal uncertainty. On the job market side, the modification could have significant direct implications for employment in the sustainability sector. We explore below  the potential impact on the ESG job market of each sustainability directive modifications:

• Under the Corporate Sustainability Reporting Directive (CSRD), the threshold for mandatory sustainability reporting has been raised from 250 to 1,000 employees. This adjustment is expected to exclude approximately 80% of companies initially covered by the rules, which may reduce the demand for ESG compliance and reporting officers, particularly in small and medium-sized enterprises (SMEs). In addition, the proposal would grant companies scheduled to start reporting next year or in 2027 an additional two-year delay before they are required to disclose. However, larger corporations including listed companies caught in the first wave will still  be required to be ready to meet strict reporting obligations, ensuring continued demand for specialised sustainability experts.

• The Corporate Sustainability Due Diligence Directive (CSDDD) introduces a shift in supplier assessments, now requiring companies to evaluate direct suppliers for environmental and human rights risks every five years instead of annually. Additionally, the removal of indirect supplier scrutiny may lead to a decreased need for supply chain sustainability analysts, particularly within SMEs that previously had to assess and monitor extensive supply chains.

• Changes to the EU Taxonomy : Taxonomy reporting will become mandatory for companies with over 1,000 employees and revenues exceeding EUR 450 million, with a new 10% materiality threshold introduced. Proposed amendments to the delegated acts aim to reduce data points by 70%, simplifying reporting requirements. This adjustment is expected to impact sustainability jobs by narrowing compliance obligations to larger companies while potentially encouraging those outside the scope to adopt the taxonomy voluntarily to attract green financing. While these changes may reduce hiring in taxonomy compliance roles, they could also create new opportunities for advisory firms assisting companies in aligning with sustainability standards.

• The Carbon Border Adjustment Mechanism (CBAM) sees multiple amendments aimed at reducing administrative and financial burdens on businesses. The changes introduce a tonnage threshold of 50 Tonnes of covered goods per year that will exclude smaller importers from the regulation, removing approximately 90% of participants from its scope. Reporting requirements and calculations will also be simplified, with the deadline for CBAM declarations extended to 31 August for the previous calendar year and streamlined authorisation procedures, the ability to delegate CBAM declarations to third-party experts, and simplified data collection requirements. The calculation of embedded emissions will be restricted to the same system boundaries as the ETS. Additionally, minor adjustments will be made to the product scope such as  the consideration of only direct emissions from electricity. Businesses may have until February 2027 to start purchasing CBAM certificates instead of the initially planned end-of-2026 deadline, with required certificate coverage potentially reduced from 80% to 50%. These adjustments aim to simplify compliance, lower costs, and encourage automation and third-party verification, ultimately increasing demand for carbon accounting and compliance technology specialists.

Shifting Demand in ESG Compliance: The Growth of Senior Green Roles and the Shift Towards Voluntary and Strategic Approaches

As discussed above, the regulatory shifts introduced by the Omnibus package will have both direct and indirect effects on sustainability employment trends across Europe. With fewer companies obligated to report sustainability data, demand for ESG compliance professionals may decrease among SMEs. Also, SMEs that previously struggled with compliance costs may choose to deprioritize sustainability initiatives, potentially leading to fewer job openings in green industries. 

As a direct side effect, with the reduction in mandatory reporting, sustainability professionals may face greater competition for available positions, particularly in mid-level ESG roles.

If adopted, the Omnibus package may also shift demand away from ESG compliance jobs, creating challenges for the sector. It will reshape the market by increasing scrutiny on major players, while smaller companies may adopt a voluntary approach to address investors’ and customers’ requirements through a simplified and less restrictive approach. 

       A change in the sustainability job market profile

The proposed EU Omnibus initiatives aimed at simplifying ESG reporting may shift ESG roles from compliance-focused positions to strategy and implementation-focused roles at different levels. While large corporations that still face stringent reporting requirements will continue to need highly specialized sustainability professionals, potentially increasing demand for senior ESG analysts and sustainability strategists, we expect businesses voluntarily pursuing ESG strategies for investor confidence and brand positioning may continue hiring sustainability professionals, maintaining some level of demand. Businesses maintaining strong sustainability commitments may sustain demand for sustainability professionals. 

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With the reduction in mandatory reporting, sustainability professionals may face increased competition for mid-level ESG roles. However, experts with in-depth regulatory knowledge, strategic sustainability planning skills, and specialized expertise in areas such as carbon accounting, carbon trading, and renewable energy engineering will remain in demand, particularly in larger firms and multinational corporations. 

In addition, the evolving regulatory framework and uncertainty of the regulatory context may drive demand for sustainability consultants and ESG advisory roles. Companies navigating the new rules will require expert guidance, boosting opportunities in sustainable finance careers and ESG risk assessment roles within consulting firms and financial institutions. 

The lasting impact of the EU Green Deal and the Clean Industrial Deal on the sustainability job market

While the Omnibus Regulations seek to simplify ESG compliance and reduce administrative burdens, they do not alter the core objectives of the EU Green Deal and the Clean Industrial Deal. These initiatives continue to drive sustainability transformation across industries, ensuring that demand for green jobs remains strong despite potential regulatory reporting changes.

The EU Green Deal sets long-term goals for climate neutrality by 2050, emphasizing renewable energy, carbon reduction, and sustainable finance. This has led to a surge in demand for professionals in Energy transition, climate strategy, carbon accounting, and Green finance. Even if reporting obligations are temporarily reduced under the Omnibus, companies will still need ESG specialists, environmental consultants, and energy transition experts to meet market expectations and investor demands.

The Clean Industrial Deal, focused on decarbonizing heavy industries like steel, cement, and chemicals, is also shaping the sustainability job market. Companies investing in green manufacturing, carbon capture, and circular economy practices will require HSE specialists, carbon market analysts, and green engineers. As industrial decarbonization accelerates, job opportunities in industrial sustainability consulting and green supply chain management are equally expected to grow.

What is next? 

The job market is expected to experience short-term fluctuations as organisations adapt to regulatory changes, requiring professionals to remain agile and upskill continuously. Sustainability professionals with expertise in evolving ESG standards, carbon markets, and industrial decarbonization will stay competitive despite shifting regulatory requirements.

While the Omnibus may slow regulatory-driven hiring, demand for roles focused on climate resilience, sustainable supply chains, and the energy transition will continue. Companies delaying ESG hiring due to regulatory uncertainty will still need to recruit experts to meet voluntary sustainability commitments and investor expectations. A recent survey shows that 80% of employers plan to recruit sustainability professionals in the next 12 months, with roles like renewable energy engineers, environmental engineers, electric and autonomous vehicle specialists, and green finance professionals among the fastest-growing.

In short, despite regulatory changes, demand for sustainability professionals will remain strong, driven by climate targets, industrial innovation, and investor priorities. The market will continue to evolve, with compliance-driven roles in SMEs declining, while demand grows in large enterprises, green energy infrastructure, advisory firms, financial institutions, and companies leveraging ESG strategies for branding, reputation, and customer expectations. This shift emphasizes the need for constant up-skills in areas such as regulatory advisory, sustainable finance, green energy, carbon management, the circular economy, and sustainability strategy. As competition increases, senior and specialist roles will become even more critical to staying competitive.

Conclusion

The Omnibus Regulation intends to reduce administrative burdens and boost competitiveness, but its impact on the sustainability job market will depend on how businesses, particularly SMEs, adapt to the new regulatory framework. Striking the right balance between easing compliance and maintaining strong sustainability practices will be key to determining future demand for green jobs in Europe. As regulations evolve, businesses and professionals must stay flexible, ensuring sustainability remains central to corporate strategy beyond mere compliance. This simplification will likely encourage more companies to adopt voluntary approaches, making them more accessible. As the Omnibus proposals move through the legislative process, companies are assessing various scenarios, including maintaining compliance plans, anticipating further timeline changes, or preparing for a possible legislative deadlock. In the short term, this regulatory uncertainty may cause some companies to delay hiring sustainability professionals until clearer guidelines are in place. In the long term, we expect demand for sustainability experts to continue rising, especially in the renewable energy and green finance sectors, driven by initiatives like the Green Deal and Clean Industrial Deal (CID), as well as the growing commitments of both scoped and out-of-scope companies to build a greener future. The simplification of reporting and the guidance provided will help out-of-scope companies compete and create value in a greener world without being hindered by heavy regulations.

In summary, the overall trend indicates a maturing market with sustained and growing demand for sustainability professionals across all sectors of the economy in 2025 and beyond. While the Omnibus proposals introduce some temporary uncertainty, the regulatory adjustments should simplify processes and address global competition.

To learn more about how EnableGreen can support your business in adapting to the new regulations, visit our EnableGreen Website. Employers can request a consultation for recruitment and Executive search support, while job seekers can explore current ESG job opportunities.

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