Sustainability reporting explained — and why it’s important to your company’s story

ESG reporting 

ESG reporting

Why does your company need ESG reporting?

As sustainability risks and opportunities come into sharper focus, building a strong reporting strategy — with verified data — is a business imperative.  With new regulations and shifting consumer expectations, the pressure to measure, disclose and deliver real progress is growing. 

Sustainability reporting offers a clear view into your company’s future — and its overall health. How and what you report doesn’t just reflect performance. It shapes the story you tell about your company’s impact on the world. 

33% of CEOs globally say climate-friendly investments initiated by the company in the last five years have increased revenue from products/services sales.

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What regulations exist for ESG reporting?

US and global regulations are evolving quickly. While some rules and regulations focus squarely on climate others take a broader view of sustainability. All raise the bar for transparency and accountability.  

  • The European Union's sustainability-related disclosure regulations and Omnibus proposals: The Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive, the EU Taxonomy and the Carbon Border Adjustment Mechanism (CBAM) are a complex set of regulations, policies and classification systems that greatly expand the amount of sustainability data companies must disclose, both those headquartered in the region and global organizations that meet certain criteria. The European Union Commission's recent Omnibus proposals  alter scope and deadlines while simplifying reporting requirements. 

  • Other region and country regulations: Dozens of countries have proposed or enacted sustainability-related disclosure regulations and rules, including Australia, Canada and Mexico. 
  • The Securities and Exchange Commission (SEC): In 2024, the US agency finalized new rules for climate disclosures that focus on the oversight of climate-related risks, the financial impacts of severe weather events and greenhouse gas emissions. However, the new administration announced it would end its defense of these rules, putting their future enforcement in doubt.  

  • US states disclosure requirements: In 2023, California passed laws that may likely apply to more than 10,000 US companies, including both public and private organizations as well as subsidiaries of non-US headquartered companies. The lack of a federal standard has caused other states to propose or enact sustainability-related regulations. 

  • The Financial Conduct Authority (FCA): The UK financial markets regulator requires UK-listed companies to disclose whether their climate-related disclosures are aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) framework — or explain why they’re not. 

  • The International Sustainability Standards Board (ISSB): These standards focus on risks and opportunities that could reasonably be expected to affect an organization's short-, medium- and long-term prospects.  The board developed two sustainability standards expected. One focuses specifically on climate-related issues while the second covers general sustainability-related disclosures. Additional standards are expected. ISSB standards need to be adopted by a relevant jurisdictional regulator or standard setter before an entity is required to report under them.


Why is sustainability assurance important?

Many global regulatory sustainability standards outline requirements for independent assurance of sustainability data – like Scope 1 and Scope 2 greenhouse gas emissions – to increase confidence in the accuracy of reporting.  Many regulations provide timelines for moving from limited to reasonable assurance. 

To prepare, you’ll need a clear strategy for validating sustainability data with strong processes and controls from source to disclosure. That means consistent methodologies, timely data and accuracy across the value chain. 

Working with an independent auditor adds credibility, strengthens trust and helps meet rising expectations from investors and regulators, even as skepticism around sustainability reporting persists.  


How to move to investor-grade reporting


Ready to take the next step on your ESG reporting and sustainability assurance journey? PwC can help

Compelling sustainability reporting takes more than data – it requires alignment, insight and collaboration across your business.  

Wherever you are on your sustainability journey, we’re ready to meet you there. We bring purpose, vision and practical experience to help you move forward with confidence. We've been on this path ourselves – and we’re ready to share what we’ve learned to drive you to the leading edge. 

Our dedicated, cross-functional teams bring industry-specific insights to help you build trust, unlock value and lead with impact. 
  • Jumpstart your sustainability strategy to fuel growth and strengthen your reputation. 

  • Turn sustainability standards and frameworks into a powerful story — one that resonates with investors, your board, and key stakeholders. 

  • Comply with evolving global regulations, such as the European Union's Corporate Sustainability Reporting Directive. 

  • Develop investor-grade metrics that build confidence and withstand scrutiny.   

  • Tech-enable your reporting to make sustainability data useful and actionable all year long. 

  • Equip your stakeholders – including your board – with the insights they need to lead on sustainability and stay ahead of the curve. 


Supporting a more equitable and sustainable planet

As part of the PwC global network, we've set 2030 goals to achieve net zero emissions.

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Contact us

Kevin O’Connell

Sustainability Assurance Services Leader, PwC US

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Gena Sullivan

Partner, PwC US

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