On September 29th, we held a webinar for a conversation on one of the most pressing questions facing responsible companies today: how can businesses move beyond regulatory compliance to embed sustainability at the core of strategy?
The backdrop is complex. With the Stop-the-Clock Directive, the ongoing Omnibus negotiations, and amendments to the European Sustainability Reporting Standards (ESRS), the EU policy landscape has created both uncertainty and opportunity. As our panelists stressed, these delays and debates should not be mistaken for a pause button. Instead, they offer a moment to take stock and think strategically.
From Compliance to Strategic Value
A key theme of the discussion was that due diligence is not just a legal obligation – it is a strategic capability. Companies that integrate sustainability risks into enterprise risk management gain resilience, strengthen supply-chain integrity, and build trust with stakeholders. Examples shared ranged from responsible mineral sourcing to proactive wood traceability, showing that companies can turn risk into opportunity.
SMEs, VSME – and Why Due Diligence Remains Critical
The conversation also touched on the Voluntary SME Standard (VSME), recently introduced by EFRAG. While designed as a proportionate framework for smaller companies, our speakers cautioned that VSME falls short in crucial ways:
- It lacks double materiality – no structured process to identify a company’s most important impacts on people, planet, and society.
- It omits many financial risk aspects, limiting insight into how sustainability issues affect business performance.
- With numerous voluntary disclosures, it reduces comparability and risks sending the wrong message to larger companies already preparing for ESRS.
This is why due diligence remains non-negotiable, regardless of company size or reporting obligations. VSME may support SMEs in providing some data, but it is no substitute for robust, risk-based impact assessments. As discussed in the webinar, true sustainability leadership means confronting the hard questions – and embedding due diligence as a core business practice.
Double Materiality: The Backbone of Strategy
Perhaps the most powerful takeaway was the role of double materiality. Far from being a technical reporting requirement, it is a tool to identify what truly matters – connecting risks and opportunities to long-term business value. As one speaker put it, “If you pause, you’re essentially putting your strategy on hold.”
Take the Next Step
The conversation is just the beginning. If you’d like to dive deeper:
- Talk to us: We’d be happy to explore where your business stands today and how we can support you. Contact us here: www.enact.se/connect.
- Join our Sustainability Due Diligence Training (starts October 6th) to explore how due diligence can create both compliance and strategic value. Read more & register ›.
- Explore our new training for sustainability leaders, launching this fall, designed to move from insight to real impact. Early announcement ›.
The direction is clear: companies that go beyond compliance are already seeing benefits in resilience, trust, and competitive edge. Now is the time to align strategy, due diligence, and sustainability reporting to create lasting impact.
Watch the Recording
If you missed the webinar, or would like to revisit the discussion, the full recording is available here below: