Yes, ESG reporting is rapidly becoming mandatory globally as of 2025-2026, shifting from voluntary to required disclosure for many large enterprises. Major regulations like the EU's CSRD, California's climate laws (SB 253/261), and various international standards now demand audited, standardized, and transparent environmental, social, and governance data.
TL;DR: In 2025, ESG reporting has shifted from voluntary to mandatory across most major economies, requiring large enterprises to disclose standardized, auditable data on environmental, social, and governance performance.
In Canada, the financial sector is facing increasing pressure to meet mandatory Environmental, Social, and Governance (ESG) reporting requirements. With new regulations implemented in 2024, companies must ensure their ESG strategies are both transparent and actionable.
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.
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.
Companies are moving away from surface-level reporting. It's moved from having an ESG report or meeting ESG standards to how ESG supports customer outcomes and business performance. The real value is not in telling the world how great your targets are; it's in helping your customers meet theirs.
Policy prescriptions from the Trump administration may prompt debate around sustainable initiatives, but the fact remains that the regulatory architecture for green investing remains strong. The label 'ESG' may come under increasing scrutiny, but this will not spell the end for sustainable investing.
Territories and Countries with Mandatory ESG Reporting
The UN makes it official. A 2004 report from the United Nations – titled Who Cares Wins – carried what is widely considered the first mainstream mention of ESG in the modern context. This report leaned in heavily, encouraging all business stakeholders to embrace ESG long-term.
ESG isn't dead, it's just gone quiet. Companies may be ditching the label, but they're still tackling climate risks, fair labor, and transparency because it's smart business. Behind the scenes, ESG is growing up. It's 2025.
“ESG is the devil,” wrote Musk on Wednesday in response to a report published in the Washington Free Beacon. The article cited Tesla's poor score upon reentering the S&P 500 sustainability index, receiving only 37 out of a maximum 100 points, versus the 84 achieved by cigarette merchant Philip Morris International.
Gasoline-powered vehicles will be a thing of the past under new regulations from the Government of Canada. Expanding on a previous mandate that required 60% of all vehicles sold in Canada to be electric by the year 2030, new regulations will mandate the complete transition to battery-operated vehicles by 2035.
Key ESG Developments in 2025
In 2025, Canada's ESG legal landscape reflects a shift from accelerated regulatory expansion to a cautious pause, as policymakers reassess and align domestic disclosure requirements with evolving international standards and market conditions.
Critics of ESG often argue that it harms economic performance, but there is substantial evidence suggesting that considering ESG factors can lead to better long-term financial outcomes by mitigating risks and identifying opportunities. This evidence is frequently overlooked in politically charged debates.
The evidence points clearly in one direction: ESG is not dead; it is evolving.
Yes — across many jurisdictions, ESG reporting is now required by law for large enterprises. Even where it isn't legally mandated, many large enterprises are still expected to publish ESG reports by investors, lenders, global customers and partners, and employee advocacy groups.
The move follows BlackRock's decision to remove the 'ESG' label from 56 ETFs and funds housing $51bn in March following the updated European Securities and Markets Authority (ESMA) fund naming guidelines. The asset manager also incorporated Paris-Aligned Benchmark (PAB) exclusions to 60 strategies housing $92bn.
The core of ESG is Environmental, Social, and Governance, but some frameworks add a fourth pillar, often Disclosure, Transparency, or even Economic Performance, to create a holistic view of a company's long-term sustainability and responsibility beyond just profits, covering planet, people, and ethical practices.
In 2025, Coca-Cola Europacific Partners received an MSCI ESG Rating of AA, marking us as a leader within our industry for managing ESG risks and opportunities.
Failed Environmental Sustainability
KPMG recognized as a worldwide leader in ESG Program Management Services.
In some parts of the world, most notably the US, there has been an increase in anti-ESG sentiment, spurred in part by the Trump administration, which claims that ESG practices are detrimental to business and that unnecessary regulations impede economic growth.
But this success has come with important limitations: Emissions are still rising overall, the NDCs have not been fully implemented, and the agreement's long-term goal of limiting the rise in average global temperatures to 2 degrees Celsius above pre-industrial levels is unlikely to be met.