As of 2025, ESG (Environmental, Social, and Governance) reporting has evolved from a voluntary initiative into a strategic and regulatory mandate. 96% of S&P 500 companies now publish ESG or sustainability reports (up from just 20% in 2014).
A Global Regulatory Shift in ESG Reporting:
According to the Global Sustainable Investment Alliance, over $30 trillion in assets globally are now managed using ESG criteria, a figure expected to cross $40 trillion by 2030. (Source: GSIA)
The EU’s Corporate Sustainability Reporting Directive (CSRD), which came into force in January 2024, now requires around 50,000 companies including many non-EU firms doing business in Europe to file audited ESG disclosures.
In India, SEBI’s BRSR (Business Responsibility and Sustainability Reporting) is mandatory for the top 1,000 listed companies from FY 2023–24, marking a major shift in how Indian firms disclose sustainability data.
These developments show that ESG reporting is no longer optional; it's becoming part of a company’s license to operate.
However, this expansion has exposed critical challenges:
Fragmented standards: Companies are juggling overlapping frameworks like GRI, SASB, TCFD, BRSR, and CSRD.
Data reliability issues: A 2024 PwC survey found that only 33% of investors trust companies’ ESG data as accurate and verifiable.
Greenwashing concerns: Regulators are cracking down in 2024, the EU fined several asset managers for mislabeling funds as “sustainable,” and India’s SEBI issued its first notices on ESG fund misstatements.
As scrutiny grows, the next era of ESG will look very different, anchored in transparency, trust, and technology. Companies will need real-time, verifiable ESG data systems to build credibility with regulators, investors, and consumers alike.
This article explores how ESG reporting is transforming and how businesses can get ahead of the curve.
Why ESG Reporting Is Entering a New Era
Growing Regulatory Pressure
The era of voluntary ESG reporting is rapidly ending. Around the world, governments and regulators are embedding sustainability disclosures into core corporate governance, making ESG reporting as essential as financial reporting.
Europe’s CSRD (Corporate Sustainability Reporting Directive), which came into force in January 2024, now requires more than 50,000 companies—including non-EU firms with significant EU operations—to submit audited ESG reports aligned with the European Sustainability Reporting Standards (ESRS).
In India, SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework has been mandatory for the top 1,000 listed companies since FY 2023–24, forcing firms to disclose environmental and social data with the same rigor as financial metrics.
In the United States, the Securities and Exchange Commission (SEC) has proposed climate-related financial disclosures that would mandate companies to report their carbon emissions, climate risks, and mitigation plans in annual filings.
This regulatory wave signals a fundamental shift: ESG reporting is becoming part of a company’s license to operate.
Investor and Consumer Expectations
Alongside regulatory pressure, investors and consumers are reshaping market dynamics through ESG performance expectations.
According to the Global Sustainable Investment Alliance (GSIA), more than $30 trillion in assets are now managed using ESG criteria globally, and this figure is expected to exceed $40 trillion by 2030.
Consumer sentiment is following the same trajectory: over 70% of consumers prefer to buy from brands that demonstrate sustainability commitments (NielsenIQ).
Companies with strong ESG performance are finding it easier to attract capital, talent, and customer loyalty, while laggards risk reputational damage, investor divestment, and declining market relevance.
ESG has shifted from a “good-to-have” narrative to a strategic business necessity.
The 3 Pillars of Next-Gen ESG Reporting: Transparency, Trust and Technology
The future of ESG reporting will be defined by three foundational pillars. Together, they will determine which companies gain credibility and which risk falling behind as regulations tighten and stakeholder scrutiny grows.
Transparency: From Static Reports to Real-Time Data
Traditional ESG reports have often been annual, static, and backward-looking. That’s no longer enough. Stakeholders now demand real-time, auditable ESG data that reveals how companies are performing on environmental and social metrics throughout the year.
Key shifts driving this change:
Continuous disclosure: Regulators like the EU and SEC are pushing for ongoing ESG updates, not just annual summaries.
Scope 3 emissions visibility: Companies must track and disclose supply-chain (Scope 3) emissions, which can represent up to 70–90% of total carbon footprints.
Unified reporting frameworks: Emerging convergence between GRI, SASB, TCFD, CSRD, and BRSR standards is pushing companies toward integrated disclosures.
Transparency builds confidence. Firms that adopt centralized, auditable ESG data systems will stand out as reliable and future-ready.
B. Trust: Building Credibility Through Assurance and Accountability
The ESG space has been plagued by greenwashing concerns and data skepticism. A 2024 PwC study revealed that only 33% of investors fully trust companies’ ESG data. To overcome this trust deficit, companies must treat ESG data with the same rigor as financial information.
How leading companies are building trust:
Independent assurance: Getting third-party audits and certifications of ESG disclosures.
Board-level oversight: Elevating ESG to the C-suite and boardrooms to demonstrate strategic commitment.
Stakeholder engagement: Publishing stakeholder impact reports and involving employees, suppliers, and communities in ESG goal-setting.
Trust turns ESG from a compliance burden into a strategic asset that attracts investors, customers, and talent.
Technology: The Engine Behind Scalable ESG
Manually compiling ESG data from spreadsheets and disparate systems can’t keep pace with new regulations. Companies are now turning to digital ESG platforms to streamline and scale their reporting.
Emerging technologies reshaping ESG reporting:
AI-driven analytics for automated data collection, error detection, and predictive insights.
IoT sensors to track real-time emissions, energy use, and resource efficiency across operations and supply chains.
Blockchain for tamper-proof ESG records and transparent supply-chain traceability.
How Businesses Can Get Ahead of the Curve
As ESG reporting becomes mandatory and stakeholder expectations rise, companies can no longer afford to treat it as a side project. The leaders of tomorrow are already future-proofing their ESG systems today.
1. Build Centralized ESG Data Infrastructure
Fragmented ESG data is one of the biggest roadblocks to reliable reporting.
Consolidate data across finance, operations, HR, supply chain, and sustainability teams into one platform.
Use cloud-based ESG management tools to ensure consistent data capture and version control.
Establish clear internal data ownership and reporting workflows.
Tip: Treat ESG data like financial data - centralized, governed, and audit-ready.
2. Align With Global Reporting Standards
Regulatory convergence is accelerating, and alignment will minimize future disruption.
Map your ESG metrics to GRI, SASB, TCFD, CSRD, and BRSR frameworks.
Prioritize double materiality assessments (impact on business and society) as required by the EU’s CSRD.
Set a three-year compliance roadmap to meet rising disclosure requirements in key markets.
Tip: Early alignment avoids costly retrofits when regulations tighten.
3. Invest in Digital Tools and Automation
Technology will be the backbone of scalable ESG reporting.
Deploy AI analytics to automate data validation and detect anomalies.
Use IoT sensors to capture real-time emissions, energy, and water data.
Adopt blockchain or digital ledger systems for traceable supply-chain ESG data.
Tip: Automating data collection reduces errors, costs, and compliance delays.
4. Embed ESG in Corporate Governance
Reporting alone won’t build credibility—governance does.
Create a board-level ESG committee to oversee strategy and disclosures.
Link executive KPIs and compensation to ESG performance metrics.
Include ESG progress updates in quarterly earnings calls and investor briefings.
Tip: Strong governance signals to investors that ESG is a business priority, not a PR exercise.
5. Engage Stakeholders and Build a Culture of Transparency
Ultimately, ESG reporting must resonate with real people—employees, customers, suppliers, and communities.
Conduct stakeholder materiality assessments to align ESG goals with expectations.
Publish impact dashboards that show progress on climate, diversity, and ethics metrics.
Offer ESG training across all business functions to build internal literacy.
Tip: Transparency builds trust. Stakeholders reward companies they can believe in.
The Future Belongs to ESG-Ready Businesses
By 2027, global ESG-linked assets are expected to surpass $40 trillion, while regulatory frameworks like CSRD in Europe and BRSR in India are making detailed ESG disclosures mandatory. Companies that treat ESG as a compliance burden risk falling behind, while those that invest early in transparent, tech-enabled, and verifiable reporting systems will gain the trust of investors, regulators, and customers alike.
The future of ESG belongs to companies that:
Centralize and digitize their ESG data
Align with global reporting standards
Automate real-time performance tracking
Embed ESG into governance and culture
At Onlygood, we believe the next era of ESG is about data you can trust and action you can measure. We help businesses move from fragmented spreadsheets to audit-ready ESG systems that unlock not just compliance but competitive advantage.
