ESG Reporting | What It Is, Why It Matters & How to Get Started

Today, Sustainability and Environmental, Social, and Governance (ESG) have become essential priorities for businesses worldwide. In fact, more than 90% of S&P 500 companies now publish ESG reports in some form.

But what exactly is ESG reporting? Which frameworks do you need to comply with? And where should your business start?

Back to Basics: Sustainability vs ESG

Sustainability in business looks at what your company does for the environment, society, and the economy. You can read more about sustainability here.

ESG (Environmental, Social, and Governance), on the other hand, provides the framework for measuring and reporting on sustainability.

Example: Under environment, you might measure your carbon footprint. Under social, you might track the percentage of women in your workforce.

While the two terms are often used interchangeably, think of it this way:
👉 Sustainability is the “what.” ESG is the “how.”

If you’re also wondering about Impact Reporting, it’s slightly different. It reflects your own company’s approach to publishing chosen metrics, rather than following third-party standards. Learn more about impact reporting here.

Why Are More Companies Reporting on ESG?

Companies are increasingly expected to report on their ESG performance for five main reasons:

1. Stakeholder Expectations

Investors, customers, employees, and communities want transparency and accountability. ESG reporting builds trust by showing how you manage environmental impact, employee wellbeing, ethical practices, and governance.

2. Risk Mitigation

Climate change, supply chain vulnerabilities, and labour issues can create serious risks. ESG reporting helps businesses identify and address risks before they escalate.

3. Alignment with the Global Agenda

Governments and regulators are emphasising sustainable development and climate action, such as the UN Sustainable Development Goals (SDGs) and the Paris Agreement. ESG reporting demonstrates commitment to these global priorities.

4. Investor Interest

Investors increasingly view strong ESG performance as a sign of resilience. Companies with ESG frameworks in place are often valued 50% higher or more. Reporting can expand your investor base and improve financing options.

5. Regulatory Requirements

Governments are rolling out stricter ESG mandates. For example, the EU’s Corporate Sustainability Reporting Directive (CSRD) (March 2023) requires large companies to disclose sustainability performance. Non-compliance risks both legal and reputational damage.

What Metrics Does Your Business Need to Track?

ESG reporting relies on data. Just as you can’t file annual accounts without financial records, you can’t publish ESG reports without tracking sustainability metrics.

Metrics generally fall into three categories:

Environmental Metrics

Greenhouse Gas Emissions (GHG): Scope 1, 2, and 3 emissions.
Energy Consumption: Total usage and efficiency improvements.
Water Usage: Consumption and conservation measures.
Waste & Recycling: Waste generation, recycling rates, and reduction initiatives.

Social Metrics

Diversity & Inclusion: Gender, ethnicity, and age representation.
Health & Safety: Incidents and employee wellbeing.
Engagement & Retention: Employee satisfaction surveys and turnover.
Community Engagement: Philanthropy and partnerships with local organisations.

Governance Metrics

Board Diversity: Gender, ethnicity, skills, and experience.
Executive Compensation: Transparency on pay structures.
Anti-Corruption: Policies, training, and incidents.
Stakeholder Engagement: How the business involves employees, customers, and communities.

Since ESG metrics vary by industry, size, and geography, every company’s first step should be a Materiality Assessment. This identifies what’s most important to track and report. Read our Materiality Assessment guide to learn more.

What ESG Reporting Standards Are There?

There are multiple frameworks for ESG reporting, each serving different needs. Here are the most widely used:

👉 You can download our full ESG Reporting Guide here for a detailed breakdown.

Where Should You Start?

Getting started with ESG reporting can feel overwhelming. Follow these four steps to build momentum:

1. Understand Your Reporting Needs

Identify which frameworks apply to your industry and geography. Download our free ESG Reporting Guide to find out which standards matter to your business.

2. Complete a Materiality Assessment

Determine which ESG issues are most relevant to your operations and stakeholders. Read our Materiality Assessment guide for a step-by-step process.

3. Start Tracking Data

Once priorities are clear, begin collecting and analysing ESG data. The Futureproof platform can help you integrate sustainability into daily operations. You can also explore our Leading a Sustainable Business whitepaper for practical guidance.

4. Prepare to Report

With systems in place, you can publish transparent ESG disclosures aligned with global standards. The Futureproof team provides end-to-end support to make the process simple.

Final Thoughts

The importance of ESG is only growing—and with it, the pressure on businesses to report transparently. ESG reporting not only strengthens stakeholder trust but also improves risk management, investor confidence, and long-term resilience.

By starting today, your company can stay ahead of regulations, attract conscious investors and customers, and demonstrate genuine commitment to sustainability.

👉 If your business needs help with Sustainability and ESG Reporting, speak to us today. Our team is here to guide you through the process and make reporting simple, accurate, and impactful.

ESG Reporting: What It Is, Why It Matters, and How to Get Started