How companies view ESG reporting

As sustainability and corporate responsibility become a key part of global business strategies, ESG (Environmental, Social and Governance) reporting has become the foundation of transparency and trust. Our recent research reveals how organizations perceive, adopt and plan ESG practices, highlighting both challenges and opportunities in this area.

What do companies know about ESG?

The data shows different levels of ESG awareness:

  • Gap in awareness: Although 68% of respondents know what ESG reporting is, concepts such as CSRD (Corporate Sustainability Reporting Directive) and ESRS (European Sustainability Reporting Standards) are less well known. Only 36% of the respondents knew about both concepts, while 47% did not know them at all.
  • Awareness of obligations: 36% of respondents said that their company is not yet obliged to report under CSRD, but they are aware that they will have to. On the other hand, 32% of respondents are not sure of their obligations.

Who is driving ESG adoption?

Stakeholder demand plays a key role in the implementation of ESG initiatives:

  • Key stakeholders: Banks emerged as the main initiators of ESG inquiries with 19%. Business partners followed with 12.8% and customers with 12.8%.  On the other hand, 51% of respondents said that they had not yet experienced such a demand from external parties.
  • Internal dynamics: 23.4% of companies address ESG passively, while 25.5% actively – for example by calculating the carbon footprint and including ESG in internal discussions.

Barriers to active engagement in ESG

Despite growing interest, the active adoption of ESG faces several obstacles:

  • Lack of knowledge: Almost 40% of respondents cited confusion about what to report, how to start, or a lack of data as the main obstacles.
  • Perceived irrelevance: Smaller businesses in particular expressed concern about the relevance of ESG initiatives given their current size and resources.

Why are companies adopting ESG?

For companies that have started ESG, the perceived benefits are a strong motivation:

  • Competitive advantages: Improved relations with business partners (51.3%), better competitiveness (53.8%) were among the frequently mentioned advantages.
  • Financial benefits: 41% of respondents expect that ESG and the transition to more sustainable sources will save them money and bring about the possibility of green investments. 28.2% expect better interest rates.

Perceived challenges

While ESG has significant benefits, it also brings complications. Respondents expressed concern about the administrative complexity and financial costs and the lack of clarity of the standards.

Future opportunities

Despite the challenges, ESG reporting has enormous potential:

  • Strengthening trust: 53.2% of respondents see ESG as a way to build a more trustworthy business partnership.
  • Market differentiation: 48.9% of respondents expect that ESG will bring them a better position on the market.
  • Regulatory readiness: Companies that are proactive in implementing ESG standards are better able to adapt to changing regulations.

The role of consultations

Interestingly, 40% of respondents expressed an interest in free ESG consultations. This indicates a growing recognition of the need for professional leadership to explain ESG and initiate meaningful initiatives.

Conclusion: A call to action

The survey highlights the transformative potential of ESG reporting for businesses. Although obstacles remain, the benefits for companies willing to invest in sustainable practices outweigh the challenges. As the ESG landscape continues to evolve, companies that act now will not only meet the new standards, but also strengthen their position as leaders of a sustainable future.