Environmental, Social, and Governance (ESG) reporting has moved from niche to mainstream. Investors, customers, and regulators expect transparency on sustainability and social impact. For organizations new to ESG, the landscape of frameworks—GRI, SASB, TCFD, and now CSRD in the EU—can feel overwhelming. This guide walks you through the basics and how to get started in 2025.
What Is ESG Reporting?
ESG reporting is the public disclosure of your organization's performance on:
- Environmental: Carbon footprint, energy use, waste, water, biodiversity.
- Social: Labor practices, diversity, health and safety, supply chain human rights.
- Governance: Board structure, ethics, anti-corruption, risk oversight.
It is used by investors for due diligence, by customers for procurement decisions, and by regulators (e.g. CSRD) as a mandatory disclosure.
First Steps
- Materiality assessment: Identify which ESG topics are most relevant to your business and stakeholders. Focus reporting on what matters.
- Choose a framework: Align with at least one widely used framework (e.g. GRI or SASB) so your disclosures are comparable.
- Collect data: Establish ownership for each metric. Many organizations struggle with data quality and consistency—this is where ESG software helps.
- Set targets: Define goals (e.g. net zero by 2030) and track progress. Targets should be linked to your risk and strategy where relevant.
- Report and assure: Publish your report and, where required, obtain limited or reasonable assurance from an external provider.
Using a dedicated ESG management platform like ActiveERM simplifies data collection, keeps metrics aligned with your GRC framework, and produces audit-ready reports. Don't wait for ESG to become mandatory in your jurisdiction; start building your strategy and data foundations now.