The state of ESG reporting in 2025

In 2024, ESG reporting was a race to keep up with expanding regulations.

In 2025, ESG reporting is still a race to keep up with regulations, but it has also become a core management function, shaping resilience and long-term value creation. 

BARC's latest report, "The State of ESG & Sustainability Reporting: Laying Out the Roadmap for 2025", examines how organizations are navigating this transition. Based on insights from 235 global companies, it compares experiences across industries, regions, and organizational setups, revealing where businesses stand today and what they must do to move ahead.

 

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Let’s unpack the key findings and explore what you can do to make your ESG reporting stronger and more impactful.

 

Many companies are only just getting started

ESG reporting is still new territory for many companies. Only one-third of these companies had published their first ESG report before 2024, while another 18% followed in 2024–2025.

Yet, about half of the companies surveyed still plan to publish their first report in the future. This is largely because many large non-listed EU companies are not required to report until the 2025 financial year, with publication expected in 2026. Many are sticking to that official timeline and have yet to prioritize ESG reporting.

By contrast, companies that started early often faced stricter regulations or pressure from investors and customers. The overall picture shows that, for many, the ESG journey has only just begun.

Leading organizations see ESG as part of the bigger picture

Maturity levels vary widely. While some companies still treat ESG reporting as a mere compliance task, others have integrated it into their core operations and decision-making processes. These companies’ leaders have dedicated resources and direct reporting lines to senior leadership. Furthermore, they have processes in place to ensure that ESG is not handled in isolation.

Clear governance is a hallmark of these high performers. They define ESG roles and responsibilities from board level down to operational teams, ensuring accountability and alignment.

 

The biggest ESG challenges companies face

Despite progress, challenges remain – and they are often the same across industries:

• Poor data quality and limited automation slow down reporting.
• Data is spread across systems and departments, making integration difficult. One in three companies cites IT integration as a major barrier.
• Manual processes are still common: nearly 30% rely on spreadsheets as their main tool, increasing errors and consuming valuable time.
• Staffing constraints add pressure, forcing teams to choose between meeting deadlines and driving long-term improvements.
• Inconsistent data definitions and gaps in expertise further complicate efforts.

 

The EU Omnibus package is a step in the right direction, but …

The EU’s first Omnibus package aims to simplify ESG reporting requirements by reducing administrative burdens while maintaining transparency – a promising development for many. 

However, companies remain cautious about how much impact it will actually have. Early feedback suggests that while some organizations expect to benefit from eased thresholds and streamlined obligations, most foresee only modest relief. For many, the package represents just a step in the right direction rather than a full solution.

6 ways to improve ESG reporting

The BARC ESG 2025 report highlights six areas that can help organizations strengthen their ESG reporting processes and generate greater business value:

1. Integrate ESG and financial reporting 
   Align sustainability metrics with financial data and embed ESG into corporate management and reporting.
2. Develop human capital 
   Build ESG capabilities through training, cross-functional teams, external expertise and internal knowledge networks.
3. Standardize processes 
   Define clear workflows, methodologies and audit trails for ESG data collection, integration and reporting.
4. Adopt effective technology 
   Move beyond spreadsheets by using ESG-specific software to automate tasks, improve data quality and enable analytics.
5. Engage stakeholders 
   Use materiality assessments, targeted communications and continuous feedback loops to ensure ESG reporting is relevant.
6. Integrate ESG strategically 
   Embed ESG considerations into planning, performance management and capital allocation to align sustainability with core business objectives.

 

Ready to take your ESG reporting to the next level?

The full BARC report paints a clear picture of the current state of ESG reporting. It’s filled with data, benchmarks, and practical recommendations you can put into practice right away. Whether you’re just getting started or are ready to take your ESG reporting even further, these insights will help you focus on what really matters.

Don't miss your chance to make ESG reporting a driver of business success.

 

Get the BARC ESG report

Related posts:

The EU Omnibus Package: Strategic realignment of the ESG agenda for companies

6 compelling reasons to invest in ESG reporting software