The Rising Importance of ESG Reporting: Why Your Business Can’t Afford to Ignore It

Benjamin Sliwka
May 10
2 min read

Introduction: The ESG Imperative

In today's business landscape, Environmental, Social, and Governance (ESG) reporting has evolved from a "nice-to-have" to a critical component of corporate strategy. Investors scrutinize ESG performance, consumers demand sustainability, and regulators are enforcing stricter disclosure requirements.

Companies that fail to prioritize ESG risk falling behind competitors, losing investor confidence, and facing regulatory penalties. But those that embrace it unlock new opportunities—from cost savings to enhanced brand reputation.

In this post, we’ll break down:

✔ Why ESG reporting is non-negotiable in 2024

✔ Key global regulations shaping corporate accountability

✔ Practical steps to start (or improve) your ESG reporting

Why ESG Reporting Matters More Than Ever

1. Investor Pressure

Over $41 trillion in global assets are now managed under ESG mandates (PwC, 2023). Institutional investors like BlackRock and Vanguard are pushing for transparency—ESG performance directly impacts funding and valuations.

2. Consumer & Talent Expectations

83% of consumers prefer buying from sustainable brands (Forbes, 2023).
76% of employees want to work for companies with strong ESG commitments (Deloitte, 2023).

3. Regulatory Crackdowns

Greenwashing lawsuits and fines are rising. The SEC penalized BNY Mellon $1.5M in 2023 for misleading ESG claims—a warning to all businesses.

Key ESG Regulations to Watch

Regulation	Who It Affects	Key Requirements	Deadline
EU CSRD	Large EU companies & non-EU firms with EU revenue	Detailed ESG disclosures (ESRS standards)	2024–2028 (phased)
SEC Climate Rules (U.S.)	Public companies	Scope 1 & 2 emissions, climate risk reporting	2025 (expected)
ISSB (IFRS S1/S2)	Global corporations	Unified ESG reporting standards	Voluntary 2024, mandatory in some regions by 2025

Sources: EU Commission, SEC, IFRS

How to Start ESG Reporting: A 4-Step Framework

Step 1: Conduct a Materiality Assessment

Identify which ESG issues matter most to your stakeholders (e.g., carbon emissions for manufacturers, DEI for tech firms). Tools like the SASB Materiality Map can help.

Step 2: Align with Reporting Frameworks

Choose a framework that fits your industry:

GRI: Broad sustainability reporting
TCFD: Climate-focused disclosures
SASB: Industry-specific metrics

Step 3: Collect & Verify Data

Track metrics like:

Environmental: Energy use, waste, supply chain emissions
Social: Employee diversity, community impact
Governance: Board structure, ethics policies

Tip: Use ESG software (e.g., Persefoni, Workiva) to automate data collection.

Step 4: Publish & Improve

Start with a simple ESG snapshot if you’re new to reporting.
Third-party audits (e.g., by KPMG, EY) boost credibility.

Final Thoughts: Don’t Wait to Act

ESG reporting isn’t just about compliance—it’s a strategic advantage. Early adopters attract better talent, lower financing costs, and future-proof their business.

Overwhelmed? Regenify specializes in helping SMEs navigate ESG complexity.

References