Publication of :response (Marten Deuter and Fabian Eiden) in the “St. Gallen Trendmonitor”

Standardised ESG information plays an essential role in the systematic assessment of sustainability risks in the financial sector. However, the EU’s omnibus process poses considerable challenges to this endeavour: the significant increase in thresholds means that an estimated 80% of the companies originally targeted will no longer be subject to CSRD reporting requirements.

This article analyses why this decline in data availability is particularly problematic for banks, insurance companies and investors. Without a comprehensive, standardised database, managing ESG risks in portfolios becomes more difficult, which could increasingly force institutions to collect missing information directly from their customers via individual queries and questionnaires. The article also highlights the role of the voluntary VSME standard and shows why companies should establish robust ESG data management even without a legal obligation to do so in order to secure their creditworthiness and resilience.

This article is an expert contribution by :response for the „St. Galler Trendmonitor für Risiko- und Finanzmärkte (4/25)“, published by the University of St. Gallen (HSG). The authors of the article are Marten Deuter (Senior Manager and Head of Sustainable Finance & Risk) and Fabian Eiden (Consultant for ESG Reporting).