Sustainability reporting is increasingly mandatory, primarily targeting large, public-interest entities, banks, insurance companies, and, in the EU, firms with over 250 employees or specific turnover/asset thresholds under the Corporate Sustainability Reporting Directive (CSRD). It is also required for listed companies in various jurisdictions, including those affected by new SEC climate rules in the US.
The requirements for detailed CSRD reporting now apply in full for Wave 1 companies — i.e., large listed companies, banks, and insurance companies with more than 500 employees — starting from financial year 2024. The first reports under the new standard were therefore submitted in 2025 (1).
Under Chapter 2M of the Corporations Act (Ch 2M), entities that are required to prepare an annual financial report under Ch 2M for a financial year, and meet one of the sustainability reporting thresholds in s292A, are required to prepare a sustainability report.
In India, ESG disclosure has been formalized through the Securities and Exchange Board of India (SEBI)'s Business Responsibility and Sustainability Reporting (BRSR) framework, making it mandatory for the top 1000 listed companies by market capitalization from FY 2022-23.
Sustainability reporting provides stakeholders, such as investors, valuable information about a company's performance beyond just traditional financial measures.
The information contained in the sustainability report contributes to provide insight into the sustainability risks and opportunities of the undertaking. It is intended primarily for financial stakeholders, such as shareholders, banks, creditors, and other financiers.
It has announced its intention to develop UK-specific sustainability reporting standards in line with the ISSB standards by Q1 2025. Requirements are anticipated to be effective from 2026 at the earliest.
Is ESG reporting mandatory in the United States? There is currently no federal mandate for ESG (Environmental, Social, and Governance) reporting in the United States.
The Corporate Sustainability Due Diligence Directive is an EU legislation requiring large companies to identify, prevent, mitigate and account for adverse human rights and environmental impacts in their own operations, subsidiaries and value chains.
However, environmental, economic, social, and human sustainability focuses on preserving future generations and improving the quality of life. We're exploring the link between these pillars and climate change, and how effectively incorporating them into our processes can help combat the climate crisis.
The overall responsibility for the sustainability report, which forms part of the management report, lies with the Management Board. It has a duty to ensure that the report complies with legal requirements and reflects the company's strategic priorities.
Entities will need to prepare a sustainability report detailing climate-related financial information if they: that are required to prepare and lodge annual financial reports under Ch 2M of the Corporations Act 2001 (Cth) and. meet one of the sustainability reporting thresholds for a financial year.
The 7 core principles of sustainability reporting, often derived from frameworks like the Global Reporting Initiative (GRI), focus on creating credible and useful reports: Materiality, Stakeholder Inclusiveness, Accuracy, Clarity, Comparability, Timeliness, and Reliability (often including Balance, Completeness, and Sustainability Context as key quality factors). These principles guide companies to report on what matters most to stakeholders, ensuring the information is trustworthy, understandable, and helps measure long-term impact.
The 3 pillars of sustainability: environmental, social, and economic.
Sustainability reporting is now becoming mandatory for U.S. corporations, driven by state regulations and international standards that are transforming how businesses operate, disclose, and compete in a global market.
In 2025, ESG reporting is shifting from voluntary to mandatory in many regions. New regulations in the EU, US, and UK require companies to publish environmental and social performance data alongside financial results.
Sustainability aims to balance economic, social, and environmental aspects for the long-term well-being of present and future generations. While ESG is a specific framework used to assess the environmental, social, and governance performance of companies, investments, or projects.
At the midpoint of 2025, the ESG landscape continues to evolve amid rising political rhetoric and regulatory change. While some believe that ESG is losing momentum, the reality is that the business case for ESG remains strong.
However during Trump's first presidency, ESG practices in the U.S. faced resistance as federal policies favored deregulation and fossil fuel investments, halting the upward trajectory of ESG. During Donald Trump's first term, over 100 environmental regulations were rolled back.
At the heart of this landscape are three major frameworks shaping sustainability reporting across jurisdictions and sectors: European Sustainability Reporting Standards (ESRS), IFRS Sustainability Disclosure Standards, and the Global Reporting Initiative (GRI).
Getting started with the 7Rs: Rethink, Refuse, Reduce, Reuse, Repair, Regift, Recycle.