Kai Karolin Wunsch

Senior Manager Strategic Product Development

Omnibus Q&A: What sustainability leaders need to know now
Entrepreneur holding digital tablet while having discussion with colleague at factory
© Westend61 / Getty Images
Kai Karolin Wunsch
Omnibus regulations are a chance to break down silos – not to add more
Kai Karolin Wunsch
Senior Manager Strategic Product Development at Munich Re Risk Management Partners

From new Omnibus regulatory packages to heightened disclosure demands, sustainability across all industries is facing a decisive moment.

At the 2025 Footprint Leaders Conference in Munich, Kai Karolin Wunsch joined a main-stage panel with executives from CHG-MERIDIAN, PwC, Siemens, and others to unpack how “Compliance meets Corporate Sustainability” and why the organisations that get it right now will dominate the decade ahead.

In this short Q&A for The Re:Brief, Kai Karolin shares practical insights on emerging regulations, the leadership mindset shift, and the role of physical climate risk insights in staying ahead.

Kai Karolin, you spoke about “Compliance meets Corporate Sustainability” in Munich. What’s the single biggest shift you see right now in sustainability leadership?

We’re moving from voluntary CSR to mandatory ESG reporting for thousands of companies. That means sustainability is no longer a PR add-on. It’s a compliance-driven, performance-measured core function. The leaders who will thrive are those anticipating rules before they land, embedding ESG into investment decisions, enterprise risk management, and supply chain resilience from the start. Sustainability needs to be rethought and shifted from a compliance burden towards an opportunity to better manage ESG risks and increase the resilience of a company.

“Omnibus” regulations are on everyone’s lips. What are they and why should leaders care?

In the EU, the proposed Omnibus Directive consolidates and streamlines elements of key sustainability legislation – including the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, the Corporate Sustainability Due Diligence Directive (CSDDD), and related measures – into a coordinated package aimed at reducing complexity and aligning requirements. The reforms have cross-cutting implications for legal, compliance, operations, and finance functions.

Rather than treating them as just another layer of bureaucracy, smart leaders use them to break down silos, unify ESG data, and align reporting processes across the business.

Will future regulation bring more complexity or more clarity?

Both. Complexity, because requirements on climate-risk disclosure and supply chain due diligence for example, are becoming more detailed and widespread. As well, due to the limited experience of companies and auditors to fulfil new regulatory requirements such as the CSRD, the interpretation of the regulation is not fully clear yet.

Clarity, because standards like the new ISSB (IFRS S1 & S2) are aligning global frameworks and setting global standards. Digital tools and AI are speeding up audit readiness. Those who invest early can turn compliance from a cost into a competitive advantage.

From your experience, where do companies most often stumble when trying to meet new sustainability rules?

There are two big traps. First, treating compliance as a one-off project. Rules like the CSRD require annual, assured reporting. You need a repeatable system, not a scramble. Second, failing to link ESG data to business impact. If your CEO can’t see how climate risk hits asset values, credit risk, or operating costs, you won’t get the resources you need.

What mindset should leaders in real estate, banking, insurance, and corporate sectors adopt?

Think beyond “box-ticking” and focus on integrating sustainability into every process of the organization – from product development and supply chain management, to underwriting, investing, and lending. Think holistically. Understand your ESG-related risks and assess the business opportunities that arise from such risks.  

If you had to give one piece of advice to executives right now, what would it be?

Stop separating “regulatory” from “strategic” conversations. They’re the same now. Regulations are essentially roadmaps for what a resilient, future-proof business looks like. Use them to upgrade your systems, sharpen your strategy, and position yourself ahead of slower-moving competitors. Turn risk into an opportunity and competitive advantage by driving the process to identifying risks and quantifying risks to be able to actively mitigate them.

How does Munich Re’s Location Risk Intelligence fit into this picture?

Location Risk Intelligence helps companies across all sectors to understand and measure physical climate risks today and in the future to take action to manage these risks. This also involves reporting on the identified climate risks, where Location Risk Intelligence delivers credible, audit-ready physical climate risk data across 28 required hazards. This is exactly what compliance teams and regulators expect. In seconds, you can assess physical climate risk hazards across your assets or portfolios and generate reports aligned with CSRD, TCFD,  ISSB, or other regulations. That makes meeting reporting requirements faster and more accurate.

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