While it has come under pressure in recent years, sustainability reporting is far from being in decline – rather it is undergoing a period of adjustment, according to sustainability consultancy Anthesis.
As Anthesis directors Elizabeth Kelly and Valerie Lee state in a recent article, the sustainability reporting landscape is “more stable than headlines suggest”, with most firms becoming more selective and disciplined in how they communicate ESG performance, instead of stepping away from reporting altogether.
Reporting commitment
As the authors note, 92% of companies in the S&P 500 and almost half of those in the Russell 3000 continued to publish sustainability reports during 2025, despite the “political headwinds, shifting regulations, and mixed market signals” that have impacted the business sector.
“At its core, sustainability reporting is still about helping companies understand, manage, and communicate what matters most to their stakeholders,” Kelly and Lee state. “That hasn’t changed.
“What has changed is the complexity. Companies now need to navigate an increasingly fragmented landscape of voluntary standards, regulatory requirements like CSRD and ISSB, and rising expectations for data accuracy and auditability. As a result, internal teams from legal to finance to sustainability are having to work more closely together.”
Stakeholder expectations
Stakeholder expectations have also helped sustain demand for sustainability reporting, with investors continuing to view climate-related risks and other environmental and social issues as “financially material”, while while ratings agencies, procurement platforms and B2B customers increasingly rely on publicly available disclosures.
The authors suggest that reporting serves an operational role as well as a communications function, helping organisations define priorities, establish targets, better assign responsibilities and connect sustainability objectives with broader business strategy.
The report identifies three areas where reporting practices are evolving, around more disciplined content selection; streamlined reporting formats; and stronger data governance and processes.
“Sustainability reporting is evolving, but its core purpose remains the same: to provide a clear, credible view of how a company manages risk, creates value, and contributes to broader societal goals,” the authors state. “The companies that are succeeding today aren’t stepping back. They’re refining their approach – focusing on what matters most, strengthening data and processes, and aligning reporting more closely with business strategy.” Read more here.
