Enterprises are entering a new era of accountability, and ESG reporting requirements are a critical part of it.
As ESG regulations tighten and stakeholder scrutiny intensifies, they’re no longer a voluntary act of goodwill; they’re legal, strategic, and financial imperatives. For years, sustainability disclosure initiatives operated in a gray zone, informed by voluntary frameworks and driven by reputation or investor expectations.
But, starting in 2024, that began to transform rapidly. Jurisdictions like the European Union and the US have introduced mandatory disclosure requirements for ESG performance for large companies, while global standard-setters like the ISSB are shaping the baseline for investor-grade sustainability reporting worldwide.
Today, enterprises face mounting internal and external scrutiny:
- Regulators demand standardized, comparable ESG disclosures and annual reports backed by auditable data
- Investors expect transparency into ESG metrics related to climate change efforts, emissions, and governance oversight
- Customers and suppliers are enforcing ESG expectations across the value chain
- Employees and boards are pushing for clarity on performance and strategy for social responsibility and human rights
This shift means ESG reporting is no longer a compliance checkbox.
It’s a strategic tool for identifying risk, making informed decisions, building trust, and future-proofing the business. It also means internal sustainability and finance teams must build new muscles: Understanding double materiality, aligning regulatory requirements across multiple frameworks, ensuring data integrity, and preparing for assurance.
If you’re navigating ESG reporting requirements in 2025 and beyond, this guide is your foundation.
What is ESG reporting?
ESG reporting refers to the disclosure of a company’s performance on Environmental, Social, and Governance metrics.
The reporting process aims to give regulators, investors, customers, and employees transparent insight into how an organization manages sustainability mandates and ESG risk.
Key components include:
- Environmental: Environmental impact across GHG (greenhouse gas) emissions, energy consumption, waste, water use
- Social: Labor practices, diversity & inclusion, community engagement
- Governance: Board composition, ethics, compliance, data security
Why ESG reporting requirements are tightening
There’s a global push for standardized, comparable ESG disclosures that go beyond broad sustainability commitments. Today, large companies are expected to:
- Align with recognized frameworks (e.g., CSRD, ISSB, etc.)
- Demonstrate data traceability and assurance
- Apply double materiality (financial + impact materiality)
- Incorporate ESG into strategic and operational decisions
- Report greenhouse gas emissions across their value chain
Failure to comply is no longer just reputational risk; it invites regulatory penalties, investor scrutiny, and supply chain exclusion.
Are ESG reports required?
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.
If you're doing business as a listed company in the EU, operating within California, or selling into regulated supply chains, you likely fall under one or more ESG disclosure regimes.
Key ESG reporting frameworks for enterprises
Frameworks help standardize ESG reports and ensure that companies are disclosing investor-grade, auditable data.
As ESG disclosure becomes more codified, enterprises must align with multiple standards — each designed to address different aspects of climate-related risks, sustainability, materiality, assurance, and financial reporting.
Below is a 2025-ready guide to the ESG reporting frameworks and standards most relevant for large companies:
1. CSRD (Corporate Sustainability Reporting Directive)
Mandatory for large and listed EU companies, CSRD requires double materiality-based reporting aligned with ESRS. It introduces mandatory assurance and machine-readable tagging. Non-EU companies with EU branches are in scope starting FY2028.
2. ESRS (European Sustainability Reporting Standards)
Developed by EFRAG for CSRD compliance, ESRS provides detailed, sector-agnostic and sector-specific disclosure requirements. It covers environmental, social, and governance topics in-depth—including cross-cutting disclosures.
3. ISSB (International Sustainability Standards Board)
Established by the IFRS Foundation, ISSB standards (IFRS S1 & S2) serve as the global baseline for investor-grade, financially material ESG disclosures. S1 covers general sustainability; S2 focuses on climate (aligned with TCFD). These standards consolidate SASB, CDSB, and elements of the IIRC.
4. GRI (Global Reporting Initiative)
The Global Reporting Initiative (GRI) remains one of the most widely adopted non-financial reporting frameworks globally — particularly for companies focused on transparency, stakeholder engagement, and impact materiality.
While voluntary, GRI is often used alongside mandatory frameworks like CSRD and ISSB in sustainability reports for global stakeholders in order to meet supply chain disclosure requests and RFPs.
5. SASB (Sustainability Accounting Standards Board)
Now embedded in the ISSB, SASB developed industry-specific ESG metrics focused on financial materiality. These standards continue to inform IFRS S1/S2 and help companies tailor disclosures to investor expectations.
6. TCFD (Task Force on Climate-related Financial Disclosures)
While now sunsetted and absorbed into ISSB, the TCFD framework shaped modern climate disclosures around governance, strategy, risk management, and metrics. ISSB S2 now carries forward TCFD’s core principles.
7. CDSB (Climate Disclosure Standards Board)
Previously a standalone environmental reporting framework, CDSB has been absorbed into the ISSB. Its structure and principles influenced S2 and climate-risk reporting standards.
8. IIRC (International Integrated Reporting Council)
Merged into ISSB via the VRF, the IIRC pioneered integrated reporting focusing on value creation across six capitals. Its principles now inform ISSB’s approach to connected sustainability and financial data.
9. CDP (Carbon Disclosure Project)
A global disclosure system used by companies to report climate, water, and forest data to investors and customers. Though not a reporting framework per se, CDP is widely requested by institutional investors and supply chains.
Many companies streamline reporting using multiple frameworks, such as GRI for stakeholder reporting, ISSB for investors, and CSRD for regulatory compliance. A harmonized data architecture enables cross-framework alignment.
10. CA SB253 and SB261
While the Securities and Exchange Commission withdrew their defense of the climate-disclosure rule, effectively ending previous requirements for companies to report on climate-related risks and other ESG factors, there are state-level requirements like California’s SB253 and SB261.
These two frameworks require companies that operate in California and who surpass $1B in annual revenue to report their GHG emissions and their sustainable finance details.
When is ESG reporting required?
ESG reporting timelines vary by regulation and geography. See our full list of reporting timelines and deadlines.
How ESG reporting impacts ESG scores
While ESG reports are designed to increase transparency and accountability, they also play a crucial role in shaping how a company is evaluated by third-party ESG ratings providers such as Sustainalytics, MSCI, S&P Global CSA, and CDP.
These ESG scores influence investor decisions, index inclusion, and even customer and partner relationships. Although scoring methodologies vary, they generally assess a company’s:
- Disclosure quality and coverage
- Management of material ESG risks and opportunities
- Performance relative to peers
- Responsiveness to stakeholder concerns
How reporting frameworks influence ESG scores
GRI: Improves scores tied to stakeholder engagement, human rights, and transparency.
ISSB / SASB: Supports investor-aligned, financially material disclosures that appeal to ratings firms prioritizing risk exposure.
CSRD / ESRS: Delivers structured, high-quality data that can fulfill many scoring criteria across E, S, and G categories.
CDP: Uses ESG disclosures directly in scoring climate, water, and forest performance.
Companies that adopt rigorous ESG frameworks and report consistently are better positioned to influence and improve their ESG ratings—and to correct inaccuracies or gaps flagged by third-party assessors.
The role of double materiality in ESG reporting
Many regulations, especially CSRD, require double materiality:
1. Financial materiality: How ESG issues impact enterprise value and financial risks
2. Impact materiality: How the company’s activities impact the environment and society
Common ESG reporting challenges for enterprises
- Inconsistent data across regions and systems
- Gaps in Scope 3 and social metrics
- Manual processes prone to error
- Difficulty navigating overlapping frameworks
- Limited internal expertise
Invest in ESG software and cross-functional teams to scale compliance efficiently.
How do I manage all of the ESG reporting requirements my enterprise is subject to?
Managing ESG requirements across jurisdictions and frameworks is no small feat. Large enterprises typically face complex reporting structures across business units and geographies. Varying data requirements for different frameworks (CSRD, ISSB, etc.) can also be difficult to manage, amplified by the pressure for timely and assured disclosures.
7 steps to manage overlapping requirements effectively:
- Map applicable regulations based on company structure and geography
- Conduct a materiality assessment to define what you need to report
- Centralize ESG information with an auditable, cross-functional platform
- Build a framework crosswalk to align CSRD, ISSB, and CDP disclosures
- Involve internal audit and legal early for assurance planning
- Automate data collection and implement review workflows
- Establish a recurring ESG reporting calendar with internal milestones
The more proactive and integrated your ESG strategy is for reporting, the less reactive and resource-intensive it becomes.
Get ahead of ESG reporting complexity
ESG reporting isn’t just about compliance. It’s instrumental in bottom-line decision-making. The sooner enterprises centralize ESG data and align with evolving standards, the better positioned they are to lead in a regulated, low-carbon economy.
For tailored guidance or software support to manage your ESG reporting journey, schedule a personalized demo with Pulsora.
FAQ: ESG reporting requirements, explained
Q: Is ESG reporting mandatory for my company?
A: If you're a large enterprise in the EU, US, or with global operations, you may fall under CSRD or ISSB-aligned guidelines. Use a scoping checklist to determine applicability.
Q: What is the difference between CSRD and ISSB?
A: CSRD focuses on double materiality and is mandatory in the EU. ISSB targets financial markets and is designed for global investor alignment.
Q: Do I need to report Scope 3 carbon emissions?
A: Scope 3 is increasingly considered material and is crucial for value chain transparency. Specific Scope 3 requirements vary by framework.
Q: What happens if we don't comply?
A: Non-compliance can lead to legal consequences, investor divestment, and reputational damage.
Q: How often do we need to report?
A: Most frameworks require annual ESG reporting, with periodic updates as needed.
