ESG Reporting

ESG Reporting refers to the disclosure of a company’s environmental, social, and governance (ESG) performance, helping stakeholders assess sustainability risks and impacts.

Depending on company size, regulatory obligations, and audience, ESG reports can take different forms:

Mandatory Reports

• CSRD (Corporate Sustainability Reporting Directive) – Mandatory for large and listed EU companies, requiring detailed ESG data in line with European Sustainability Reporting Standards (ESRS). 

Voluntary Reports

• LSME (Large & Listed SMEs) – Mid-sized companies preparing for future reporting obligations. 
• VSME (Voluntary SME Reporting) – Small businesses opting for streamlined, non-mandatory ESG disclosures to improve transparency and market positioning. 

More detailed overview of Frameworks & Standards can be found in guide - Sustainability Reporting and Disclosure.

Types of Reports

• Data-Driven ESG Reports – Factual, compliance-focused reports designed for regulators and investors (e.g., CSRD-compliant disclosures). 
• Marketing-Oriented ESG Reports – Designed for branding and reputation management, often focusing on storytelling rather than deep compliance data. 

Effective ESG reporting ensures compliance, builds trust with stakeholders, and enhances access to sustainable finance. The right approach depends on regulatory requirements, investor expectations, and business strategy.