Regulatory momentum around frameworks like the CSRD has driven a wave of new reporting requirements in recent years. However, in 2025, the pace has become more uneven. Delays in implementation, including the recent two-year postponement of key CSRD requirements and the threshold increase to 1,000+ employees, have created breathing room for many mid-size companies. In the U.S., the evolving political landscape and pushback on ESG have led some organizations to pause or scale back their communications. Despite this, the expectations of investors, stakeholders, and supply chain partners remain.
The stakes are not just regulatory. They are reputational, operational, and strategic.
Why sustainability reporting has become business critical
Even as regulatory timelines shift, the strategic importance of ESG reporting continues to grow. Private companies and those outside the CSRD scope increasingly face indirect pressure to report. This is particularly true for companies embedded in supply chains of large public companies, who now require Scope 3 emissions data and ESG disclosures from vendors to meet their own obligations.
Sustainability is no longer just about checking a compliance box. It plays a central role in reputation management, investor communications, and long-term risk mitigation. Companies that maintain transparency in this climate are seen as trustworthy, resilient partners, especially as public discourse around ESG becomes more politically charged.
You can see examples of how companies are rising to this challenge in our sustainability reporting work samples.
Adapting to forces beyond compliance
Many companies are adapting by going beyond compliance-driven frameworks and focusing instead on materiality, narrative, and stakeholder expectations. Rather than publishing sustainability data for data’s sake, leading organizations are emphasizing integrated storytelling and strategic alignment.
While some companies are pulling back from public sustainability narratives due to politicization or fear of scrutiny (a phenomenon now dubbed “greenhushing”), others are leaning into transparency. They are finding that well-structured ESG communication is a powerful tool to drive credibility, build trust, and engage stakeholders.
For a deeper look at how external factors are influencing corporate communication, explore this article: Adapting DEI Communication for a Changing Landscape.
Making materiality matter
More companies are embracing double materiality, recognizing that sustainability issues must be evaluated not just for their financial relevance, but also their societal impact. What stands out in 2025 is not just which topics are prioritized, but how those insights shape governance, strategy, and enterprise risk management.
Materiality assessments have evolved beyond checkbox exercises. Today, they’re informing real business decisions, guiding resource allocation, and helping companies align their communications with stakeholder expectations.
From disclosure to dialogue
Modern sustainability reporting is moving from static disclosures to ongoing conversations. This shift allows organizations to demonstrate authenticity, responsiveness, and progress, especially in a landscape where many stakeholders feel fatigued by over-reporting and under-action.
Where companies go from here
For many organizations, especially mid-cap and private firms, it may feel like the urgency around ESG has slowed. But the broader trend is still clear, as transparency is becoming embedded in the way companies do business.
Despite signs of reporting fatigue and uneven momentum, forward-thinking organizations are staying the course. They are leveraging this moment to sharpen their messaging, prioritize material topics, and build more resilient narratives.
Whether mandated or voluntary, corporate reporting is evolving, and those that embrace clarity, authenticity, and flexibility will stand out.
If you’re ready to rethink how your sustainability story is told, connect with us.