Environmental, Social, and Governance (ESG) reporting is no longer optional. With rising pressure from investors, regulators, and consumers, businesses must now provide transparent and standardized ESG disclosures.

In 2025, several new rules and frameworks are coming into force across major economies. Whether you're a multinational or a fast-growing startup, understanding these ESG reporting requirements is crucial to stay compliant, competitive, and credible.

What Is ESG Reporting?

ESG reporting involves public disclosure of a company’s environmental impact, social responsibility, and governance practices. It helps stakeholders understand a business’s sustainability performance, ethical operations, and risk exposure.

Core ESG areas:

• Environmental: Carbon emissions, energy use, climate risks

• Social: Labor standards, diversity, human rights, community impact

• Governance: Board diversity, executive pay, ethics, data privacy

Why ESG Reporting Matters in 2025

• Investor demands for transparency and risk analysis

• Regulatory requirements in the US, EU, and APAC

• Reputation management and brand trust

• Access to ESG-linked financing or green capital

• Customer preference for ethical, sustainable brands

New ESG Reporting Rules You Should Know (2025)

1. European Union: CSRD (Corporate Sustainability Reporting Directive)

• Replaces the Non-Financial Reporting Directive (NFRD)

• Applies to large EU and non-EU companies operating in the EU

• Requires third-party audit, detailed sustainability disclosures, and digital tagging

• Reporting aligned with EFRAG’s ESRS standards

Effective: January 2025 (phased implementation)

2. United States: SEC Climate Disclosure Rule

• Companies must disclose climate-related risks, carbon emissions (Scope 1 and 2), and climate governance

• Focus on materiality and financial risk tied to climate change

• Scope 3 emissions may be included for large filers

Effective: Expected rollout across fiscal years 2025–2026

3. Global Baseline: ISSB Standards (IFRS S1 and S2)

• Issued by the International Sustainability Standards Board (ISSB)

• Provide global baseline for ESG and climate disclosures

• Aligned with TCFD (Task Force on Climate-Related Financial Disclosures)

• Focus on material sustainability-related risks and opportunities

Adoption: Recommended for multinational firms and stock-exchange-listed companies

4. India: BRSR Core Requirements

• Applies to top 1,000 listed companies

• Introduces assurance, sector-specific metrics, and value chain disclosures

• Mandatory assurance on key indicators

• Emphasis on responsible business conduct and stakeholder impact

Effective: Voluntary in 2024, mandatory from 2025

5. Other Notable Frameworks to Watch

• SASB (Sustainability Accounting Standards Board)

• GRI (Global Reporting Initiative)

• UN SDGs (Sustainable Development Goals)

• CDP (Carbon Disclosure Project)

These remain influential in shaping voluntary and sector-specific ESG disclosures.

Key Steps for Businesses in 2025

1. Assess Applicability: Check if your business falls under mandatory disclosure laws

2. Collect ESG Data: Start building reliable, auditable systems for ESG metrics

3. Choose a Reporting Framework: Align with CSRD, ISSB, or GRI based on geography

4. Engage Stakeholders: Train internal teams and communicate ESG goals externally

5. Use ESG Software Tools: Platforms like Workiva, Diligent, and ESGgo help automate compliance

6. Prepare for Assurance: Ensure your data is ready for third-party verification

As ESG reporting becomes mandatory across the globe, businesses must move from intention to action. Staying ahead of the new rules ensures compliance, builds investor confidence, and enhances your brand’s value.

In 2025, ESG is not just about reporting—it’s about responsibility, resilience, and results.