The Sustainability Challenge for Municipal Companies

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Written by
Clara Westman
Reading time
4 min

The EU's Omnibus proposal has brought sustainability reporting back into focus. This not only means less stringent requirements, but also opportunities - not least for municipalities, regions and their respective companies. ESG experts Cecilia Almér and Rebecka Jakobsson share insights and concrete advice on sustainability work.


News events have followed one another in recent years. This turbulent world has also led to sharp political changes. This is particularly noticeable at the EU level, where the shift in sustainability has been both strong and rapid.

The shift in sustainability reporting is intended to simplify the ambitious sustainability regulatory framework that has been developed and planned for a long time. Currently, the EU is working to implement the foundations of the Omnibus proposal published in February 2025. In the meantime, a pause has been introduced in the form of the so-called 'Stop the Clock' voted in April 2025, which means a two-year pause in implementation.

The Future after the Omnibus

Formally, the next big step is a finalized proposal on the simplification of the European Sustainability Reporting Standards (ESRS) - a proposal to be submitted to the European Commission by the end of November this year. As an actor in a municipality or region, this raises the question of how you should act going forward?

Cecilia Almér is an ESG expert at Stratsys:

- The dramatic change linked to the Omnibus proposal does not only mean relief, but also opportunities. An important question is, for example, how can municipal actors benefit from the work already started on CSRD? How can public sector operators and their companies use what has been created as a tool for governance, risk management, business development and increased value for citizens and society?

Sustainability Remains Key

It's clear that it's not enough to just pay attention to what legislation and auditors say. This is something that Rebecka Jakobsson, senior sustainability consultant and team leader at 2050 Consulting, also agrees with.

But what are the key perspectives and questions for moving forward in public sustainability work - even with the Omnibus in mind? Here are some important issues to raise as a municipality or region:

  1. Expectations. What are the expectations of residents and local communities where we operate?
  2. Economic perspective. How can we work with costs and savings linked to sustainability issues?
  3. Opportunities in change. As the world around us changes, what new opportunities are opening up?
  4. Context. What risks does your organization face in the context in which you operate?
  5. Reputational risk. What considerations need to be taken into account given your position as a public actor, for example in terms of attracting business and residents?
  6. Legislation. The discussion often focuses on CSRD, but are you aware of all the other legislation being rolled out in the EU?
  7. Owners. What are the expectations on the pace of sustainability work based on your specific ownership situation?

Stakeholders - Extra Important

Cecilia places particular emphasis on indirect requirements and stakeholder expectations. In this context, she highlights an illustrative example from Stratsys' operations, where the question was put to the test for a municipality:

- It was a municipality where a large industry was interested in establishing itself. In the choice before possible establishment, the industrial company required detailed answers about the municipality's ability to provide data and information about services in port, energy, waste, etc. The company was met by CSRD and had a well-developed sustainability strategy. It was essential that the municipality, as a supplier, could meet their data needs, demonstrate good control and also processes for how the municipality worked with its subcontractors.

- So ask yourself: can we provide this kind of information to our stakeholders in a relatively simple way? And can we provide quality-assured data? This is where the indirect requirements come in clearly.

Rebecka also emphasizes the importance for a municipality, for example, to have good knowledge of the requirements it faces:

- It's important to be aware of the requirements that are currently in place. But also on what requirements may come in the future. It's about where the municipality or region as a whole is heading and what is required to remain attractive to both companies and residents.

Reading tip: The cost of inaction - why it's time to take sustainability risks seriously

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Cecilia Almér, ESG expert at Stratsys

2050_Rebecka Jakobsson
Rebecka Jakobsson, Senior Sustainability Consultant & Group Manager at 2050

Do Not Lose the Pace in Sustainability Work

In sustainability work, data is the driving force to lead the work forward. Data makes it easier to see effects, to communicate the work and to see what needs to be done differently.

Cecilia emphasizes that it is important not to lose momentum, despite what is happening in connection with the Omnibus proposal:

- Take advantage of the experience and use the sustainability data that exists. Even if things are a bit messy right now, don't skip collecting data. It is important to get complete data sets. Also, make sure to get the processes for audit and internal control right.

- It remains important, CSRD or not, that the data collected is traceable, quality assured and transparent - as well as value adding.

The importance of data quality is something Rebecka agrees with:

- It may be that you need to hand over data to your customers or stakeholders, which makes you a supplier. But it may also be that you need to be able to request secure data from your suppliers.

Reading tip: Three Swedish sustainability managers on the future with Omnibus

The Sustainability Issue - Just as Relevant Tomorrow

So what do Cecilia and Rebecka predict for the future of sustainability work - not least as a municipal or regional actor? According to Cecilia, it is more important than ever to drive sustainability work forward and not to stop:

- We see no end to sustainability reporting. Reporting will continue to be requested by stakeholders and other market players, even if fewer companies are affected by CSRD as a legal requirement.

- Stick to what is material. And not least the processes created within your group or company. Build on the work that has already been done. Remember to continue to collect data and ensure that it is quality assured, so that you really have the decision-making basis you need to drive your sustainability work forward. Even tomorrow.

See how Stratsys can help you take the next step in your sustainability efforts: Read more about the Sustainability Management product.