The Corporate Sustainability Reporting Directive (CSRD) and the newly announced Omnibus Directive (February 26, 2025) mark a significant shift in how companies manage supplier relationships. These legal developments are reshaping expectations around ESG (Environmental, Social, and Governance) transparency, pushing companies to rethink their approach to traceability and supplier collaboration.
Even with discussions of a moratorium or regulatory simplification, one thing is clear: transparency and responsible supplier management are no longer optional. 78% of Procurement Departments have sustainability and CSR goals planned for 2025 (Agile Buyer-CNA study), highlighting the growing importance of these issues.
In this article, we explore how CSRD impacts supplier relations, the obligations companies must anticipate, and the strategic levers to turn compliance into a competitive advantage.
CSRD: Redefining Supplier Relationships
How the 2025 Omnibus Directive Impacts CSRD
The Omnibus Directive aims to harmonize CSRD implementation across the EU. While easing some burdens for SMEs, it introduces stricter demands for large enterprises. Supplier management systems must evolve accordingly.
Key changes include:
- Harmonized ESG reporting obligations across Europe
- Eased requirements for smaller businesses
- Harsher penalties for non-compliance
- New expectations for ESG traceability and documentation of supplier commitments
ESG Transparency: A Growing Challenge
Regardless of legislative changes, ESG transparency remains a core principle. Companies must incorporate ESG criteria into supplier management—not only to mitigate risk, but also to meet rising stakeholder expectations.
Proactive ESG integration strengthens long-term relationships with responsible suppliers and improves company resilience.
The Impact on Supplier Relationships
The CSRD and the Omnibus Directive are deeply transforming supplier relationships by requiring greater traceability and stronger collaboration. Companies must now co-develop action plans with their partners, align practices around common objectives (such as reducing emissions, optimizing deliveries, and improving ESG criteria), and ensure transparent and well-documented tracking of commitments. This evolution drives organizations to build more strategic and sustainable supplier relationships, based on shared responsibility and continuous improvement.
Supplier Selection Process
Even if CSRD enforcement is delayed, companies must integrate ESG into supplier selection processes to ensure alignment on sustainability and social responsibility values.
Data Collection and Verification
Supplier Relationship Management (SRM) tools are increasingly essential for ESG data collection and verification, especially under the Omnibus Directive. SRMs enable rapid risk analysis and improve supply chain transparency.
An SRM to Anticipate New Compliance Requirementse
SRM is a strategic tool to meet CSRD and Omnibus requirements. It offers:
- Automated ESG reporting in compliant formats
- Reliable supplier data for regulatory alignment
- Real-time ESG performance monitoring to anticipate audits and mitigate risk
Example: A textile company must now ensure material traceability to meet new 2025 Omnibus requirements. Using SRM, it centralizes supplier data, automates certification checks, and confirms ESG compliance across its supply chain.
Regular Audits Remain Crucial
Regular audits remain essential to assess suppliers’ compliance with ESG standards. In times of regulatory uncertainty, regular supplier audits are vital to detect compliance gaps and prevent risks. They enable quick corrective actions and maintain ESG standards.
A Resilience Opportunity
ESG integration goes beyond compliance—it enhances enterprise resilience by proactively identifying and mitigating environmental, social, and governance risks. This prepares companies for future economic, societal, or environmental disruptions.
Risks and Opportunities in an Uncertain Environment
- Compliance delays: Uncertainty may cause some companies to slow their efforts—an approach that carries risk if regulations remain unchanged.
- First-mover advantage: Companies that stay committed to ESG will earn stakeholder trust and differentiate competitively.
- Need for flexibility: Businesses must stay agile in how they collect and report ESG data, adapting to any regulatory changes.
Conclusion
With the 2025 Omnibus Directive, supplier management and ESG transparency are becoming strategic priorities. Adopting an SRM and structuring a proactive ESG approach enables companies to anticipate compliance demands and build a more responsible, resilient supply chain.
Investing in SRM tools and forward-looking strategies transforms compliance into a competitive advantage.
Companies—get ahead of CSRD and Omnibus requirements today to turn obligation into opportunity.
References:
Fluxym – CSRD & Responsible Procurement