Last month, YouConnect hosted the third edition of our compliance roundtable, an initiative launched in 2022 to bring together compliance professionals for exchange and learning. This edition focused on the growing impact of ESG and the role of compliance leaders and departments. Just like previous editions, this roundtable did not disappoint and sparked engaging discussions and valuable insights.
In this blogpost, we’re happy to share some of the key takeaways and reflections.
At our recent roundtable, we brought together various compliance professionals, coming from different industries, for a discussion focused on the evolving role of compliance in today’s corporate landscape, which is heavily influenced by ESG. The roundtable was divided into two segments: the first addressed emerging developments in EU sustainability legislation, and the second examined effective leadership approaches for compliance officers. What followed was a lively and thoughtful conversation discussing key insights, common hurdles (and solutions) and strategic outlooks.
We invited compliance expert Vanessa Galhardo-Galhetas over to kick things off with a short presentation on the context and objectives of ESG.
She pointed out that for decades, the Friedman Doctrine shaped corporate thinking: companies exist to maximise profit for shareholders. Today, that model is under scrutiny. The rise of stakeholder capitalism emphasises that companies should also create value for employees, customers, suppliers and society. The European ESG framework exemplifies this changed mindset and is highly ambitious.
However, many companies feel overwhelmed by the landslide of new regulations. The recent Omnibus proposals seek to ease the burden: reducing scope, granting more time and simplifying rules. But for companies that have already invested in implementation, this creates uncertainty and frustration.
The role of Compliance in ESG implementation
When ESG entered the corporate agenda a few years ago, many companies were confronted with new responsibilities. In most organisations, the compliance and/or legal departments were among the first to step up, assessing what needed to be implemented and how best to do so. Some companies established dedicated ESG departments, while others distributed ESG responsibilities across existing teams. A number of organisations opted for a hybrid model, combining both approaches.
The participants agreed that there is no stand-out solution. However, clear roles and reporting lines, cross-functional collaboration, and a corporate culture that views compliance as a strategic partner - rather than merely a rule enforcer - emerged as essential ingredients for success. Participants also emphasised the critical role of strong leadership in driving ESG initiatives and mentioned that assigning sustainability officers in various departments can be a good practice.
A growing concern raised during the discussion was the increasing complexity and volume of regulations. While the many EU regulations and directives are rooted in well-intentioned objectives, they are becoming increasingly difficult to navigate. Companies struggle to remain fully compliant, and this is leading to what several participants described as ‘regulatory fatigue’.
There is also a broader worry: the escalating regulatory burden could potentially undermine European competitiveness in the global market. In contrast, other major economies like the United States and China typically operate under more flexible regulatory environments which often result in lower operational costs. This raises a key question: Is the EU putting its businesses at a disadvantage by being too ambitious in its regulatory agenda? Whilst participants acknowledge this reasoning, they also point out that companies residing in the EU benefit from a more stable legal environment, enjoy greater consumer trust, and are typically better prepared for future risks and shifts in public expectation.
Another challenge highlighted was the impact of ESG regulations on supply chain management. Many rules require companies to conduct thorough due diligence on their suppliers. However, obtaining accurate and comprehensive data from suppliers can be difficult. This is especially true when dealing with smaller vendors who fall outside the regulatory scope and are often unprepared or lack the necessary expertise.
Leaders in compliance: beyond the rulebook
In the second part of the roundtable, we took a closer look at the role of compliance officers as leaders within an organisation.
The compliance officer position can be a challenging one. Often acting as the messenger of regulatory news, informing the business of new obligations and identifying potential risks in new business ideas. But the real influence lies in how that message is delivered; an effective compliance officer doesn’t just cite rules but builds a compelling business case, speaks the language of leadership and highlights both risks and opportunities.
Participants emphasised the importance of building strong professional relationships across departments as a compliance officer. Within an organisation the people need to know and trust the compliance department. In the end it’s not about policies, but about people carrying out these policies.
As the regulatory burden grows, compliance departments’ workloads follow suit, yet their headcount often stays the same. It is widely accepted that AI will be a valuable ally in unburdening compliance teams, but it won’t be able to replace compliance professionals as a whole.
In building an effective compliance team, the participants acknowledged the difficulty of finding qualified talent in compliance. Many young graduates are unfamiliar with the career opportunities in compliance and often lack a clear understanding of the field, largely because compliance roles are so fragmented – ranging from AML/KYC and data protection to product compliance and beyond. To add to that, various sectors have very specific and specialised compliance positions, such as the medical devices industry. The role of compliance officers can be totally different depending on the organisation.
In a difficult talent market, it pays off to hire for skills & attitude rather than experience. Some participants mentioned the value of candidates who may not come first to mind. Candidates with a background in journalism or marketing, for example, bring valuable skills to compliance teams. They can help in translating complex regulations into understandable policies and communicate to different departments accordingly, while also supporting creative internal campaigns that boost compliance visibility and engagement.
Conclusion
Our two-hour roundtable flew by, an indication of just how much there is to discuss. What became abundantly clear is that ESG is no longer a side topic, it is at the heart of compliance discussions and is reshaping the corporate landscape.
While regulatory pressure will undoubtedly continue, the companies that are leading the way are those that view ESG not just as a compliance requirement, but as a strategic opportunity. To build trust, drive business value, and maintain a competitive edge in a rapidly changing world. As one participant aptly noted: “Sustainability is not charity, it’s a business driver.”
To meet this challenge, compliance professionals must evolve beyond their traditional role of tracking and implementing regulatory developments, but also invest in stakeholder engagement, forging strong relationships across the business, and help build diverse, high-performing compliance teams.
The growing volume and complexity of regulation present challenges, but they also signal an exciting era for anyone working in compliance.
Authored by Diether Vandenbussche - 10 Jun 2025
