In recent years, ESG (Environmental, Social, Governance) has played a central role in corporate strategies and recruitment. Just a few years ago, ESG specialists were in high demand, and job postings focusing on sustainability and reporting were everywhere. But in 2024 and 2025, a significant shift has occurred: ESG is no longer the end goal – it has become a mean to a greater objective: sustainability.
A Strategic Shift
The EU Commission’s proposed “omnibus package” from February 2025 aims to reduce overlaps between the CSRD, EU Taxonomy, and CSDDD – easing the administrative burden by up to 25%, without compromising data quality. However, investors warn against cutting too much, as it could harm transparency around environmental and social risks.
While media coverage has highlighted ESG specialists losing their jobs, the numbers tell a different story. In January 2025, ESG-related job postings rose by an impressive 231% compared to the same time the previous year. This indicates that ESG hasn’t disappeared – it’s being redefined.
Previously driven by compliance and external pressure, ESG is now increasingly used as a framework for risk management and business development. As someone commented on a post I shared in April:
“Sustainability isn’t a reporting task – it’s a competitive advantage.”
ESG Is the Compass – Not the Destination
ESG remains a crucial management tool. It brings structure, clarity, and transparency, but it’s not the final destination. The goal is sustainability: a resilient, long-term, and responsible business model across the entire value chain.
The UN Global Compact and the World Economic Forum describe ESG as a framework that helps companies manage risk and grow their business. Deloitte highlights that ESG creates real value when deeply integrated into a company’s culture and strategy, rather than being treated as a reporting exercise. For companies that take it seriously, ESG isn’t about ticking a green box; it’s about navigating responsibly in a complex world.
Sustainability Drives Value
Sustainability is no longer optional – it’s a strategic imperative. Companies that successfully embed sustainability into their core operations see increased innovation, stronger customer loyalty, and improved ability to attract and retain talent.
The CSRD aims to strike a balance between the need for credible reporting and the desire to reduce bureaucracy, allowing companies to focus on initiatives that drive real value – not just documentation.
Expectations Are Rising – Not Falling
Even though ESG reporting rules are being simplified, market expectations are not decreasing. On the contrary, investors, customers, and employees continue to demand high levels of transparency and accountability.
Companies that interpret regulatory simplification as an opportunity to scale back their sustainability efforts risk losing both competitiveness and reputation. It’s not the volume of reports that matters – it’s the actions taken, the transparency shown, and the impact made.
The Headhunter’s Perspective: What Works in Practice?
As a headhunter, I clearly see which companies are succeeding with their ESG and sustainability efforts – and which are falling behind. The most successful ones understand that ESG is a tool for achieving strategic goals, not a task in itself.
Here are my recommendations for companies looking to attract and retain strong ESG talent:
- Embed ESG into the core business. It should be an integrated part of your strategy, not an appendix in the annual report.
- Focus on real value creation. Prioritize initiatives that drive innovation and have impact, not just those that are easy to measure.
- Be transparent. Communicate openly about both progress and challenges, it builds credibility.
- Reduce bureaucracy. Focus your efforts on action rather than excessive documentation.
Conclusion
ESG is not dead, it is evolving. It remains an essential management framework and investor lense in an increasingly complex world, but it’s not the end point.
That lies further ahead, and it’s called sustainability.
