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Sustainability Reporting in 2025: Key Global Trends in Framework Adoption for Corporate Leaders
- Directors' Institute
- Dec 15, 2025
- 8 min read
If you sit in any boardroom today, or even skim a CEO’s LinkedIn feed, you’ll notice something: sustainability reporting is no longer treated as a side project. It’s a headline item. A pressure point. A source of pride… and sometimes anxiety.
Over the past few years, companies have been trying to keep up with a confusing mix of reporting rules — GRI here, SASB there, TCFD somewhere in between. It felt like trying to follow a map with too many arrows pointing in different directions.
But 2025 is different. It’s the year things finally started to settle — and shift — at the same time.
Corporate leaders are waking up to the reality that the world isn’t just asking for sustainability data anymore. It’s asking for clarity, consistency, and credibility. Investors want numbers they can compare. Regulators want disclosures they can enforce. Employees want to feel proud of the company they work for. And customers… well, they expect the businesses they support to walk the talk.
That’s why this year has become a turning point. Around the world, companies are choosing reporting frameworks more deliberately than ever before. Some are moving toward global baselines like IFRS S1 and S2. Others are navigating region-specific rules like ESRS in Europe. A few are trying to stitch multiple frameworks together so their story is understood by everyone — no matter the geography.
And as this shift happens, a quiet transformation is taking place: sustainability reporting is becoming less about compliance and more about leadership.
In this blog, we’re going to unpack the biggest global trends shaping sustainability reporting in 2025 — not through technical jargon or regulatory speeches, but in plain language that business leaders can actually use. We’ll look at what’s changing, why it matters, and how forward-thinking companies are turning reporting frameworks into a strategic advantage rather than a painful annual exercise.
Because in 2025, the question isn’t “Do we have to report?” It’s “What story does our reporting tell about who we really are?”
What Sustainability Reporting Really Means in 2025
A few years ago, sustainability reporting felt like something extra. A nice addition to the annual report, tucked somewhere after the financials, usually framed with a few photos of solar panels or employees planting trees. It wasn’t a priority. It wasn’t taken too seriously. And honestly, most companies treated it like a polite nod to expectations rather than a true reflection of how the business worked.
But 2025 changed the tone completely.
Today, sustainability reporting has become part of how a company introduces itself to the world. Investors glance at it before they even meet your CFO. Governments use it to decide whether you’re aligned with new regulations. Banks use it to evaluate risk. Employees read it to understand whether your values match theirs.
It’s no longer a side report — it’s another identity card for the business.
And here’s the important shift: sustainability reporting isn’t just about explaining what a company cares about; it’s about proving what the company does. People want to see numbers, not slogans. They want evidence, not promises.
That’s why the reporting landscape has become more serious. You hear leaders talk about “double materiality,” “climate risk,” or “value chain emissions,” not because it’s trendy, but because these topics have real financial weight now. A supply chain disruption, a missed emissions target, a lack of human rights oversight — these aren’t abstract risks anymore. They show up in balance sheets.
What sustainability reporting really means today is simple:
It’s a company opening the curtain and showing how it plans to survive the future.
Not in a dramatic way — but in a practical, accountable, measurable way. And companies that treat reporting as a storytelling exercise backed by numbers are finding it easier to build trust. The ones who treat it like homework are already falling behind.
2025 made one thing clear: sustainability reporting isn’t about ticking boxes. It’s about answering the question every stakeholder silently asks—
“Can we trust how you say you run your business?”
The Global Framework Landscape: Making Sense of the Alphabet Soup
Ask any corporate leader what confuses them most about sustainability reporting, and they’ll probably sigh and say something like, “There are too many frameworks… and all of them say different things.” And honestly, that’s fair. For years, companies have been juggling acronyms the way a chef juggles knives — carefully, and usually with a bit of fear.
GRI. SASB. TCFD. ISSB. ESRS. It feels less like reporting and more like learning a new language.
But in 2025, something interesting started happening: the chaos began to sort itself out. Not perfectly — not yet — but enough that leaders can finally see where the world is heading.
Let’s break this down in plain English.
GRI: The “Big Picture” Storyteller
GRI is the framework companies used when they wanted to show their broader impact on society. It’s about communities, environment, people, policies — the full landscape of how a company touches the world. It’s detailed but not financial by nature.
SASB: The Investor’s Lens
SASB stepped in when investors said, “Okay, but tell us what matters financially in your industry.” It’s industry-specific, sharp, and practical. A bank doesn’t report the same way as a mining company, and that’s exactly the point.
TCFD: The Climate Risk Specialist
TCFD focused on one thing: climate. It pushed companies to explain how climate change affects their business strategy, not just the other way around. Think of it as a weather forecast for your balance sheet.
IFRS S1 & S2 (ISSB): The Global Baseline Trying to Bring Order
IFRS sustainability standards — S1 and S2 — showed up like the referee everyone had been waiting for. Their goal is simple: create one global baseline so investors can actually compare companies without needing a translator.
This is the first time companies can look at a framework and say, “If we follow this, most people around the world will understand our story.”
ESRS: Europe’s Ambitious New Rulebook
And then there’s ESRS — Europe’s answer to the growing demand for deeper, mandatory sustainability disclosure. It’s detailed, layered, and designed to force companies to look beyond themselves and think about how they affect society and the environment.
It’s not light reading, but it’s becoming unavoidable for companies operating in or connected to the EU.
The Rise of IFRS S1 and S2: Why the World Is Finally Aligning
If there’s one shift that stands out in 2025, it’s how quickly companies and regulators are rallying around IFRS S1 and S2. A few years ago, the idea of a single global baseline for sustainability reporting felt like wishful thinking. Too many frameworks, too many interpretations, too many regional preferences.
But now? The world seems tired of juggling five different playbooks, and IFRS stepped in at the right moment with something everyone had been waiting for: clarity.
So what are S1 and S2, really?
Imagine someone walked into a crowded room full of people speaking different languages and said, “Let’s all agree on one way to introduce ourselves.” That’s what IFRS is doing for sustainability reporting.
S1 tells companies how to present overall sustainability information in a way investors can actually use.
S2 dives specifically into climate disclosures, building on the familiar TCFD structure.
These standards don’t try to solve every ESG problem. They focus on financially relevant sustainability information — the kind investors need to understand long-term risk and value.
Why are countries adopting them so quickly?
Because business leaders were tired of confusion. Investors were tired of guessing. And regulators were tired of inconsistent reports that couldn’t be compared across borders.
IFRS offered something simple: a common starting point.
By early 2025, more than 30 jurisdictions had already moved toward integrating S1 and S2 into their reporting rules. That’s not just trend-following — that’s global alignment finally taking shape.
What does this mean for companies?
For the first time, a sustainability report written in Singapore can meaningfully compare with one written in Canada or Brazil. Investors don’t need a decoder ring. And companies don’t have to reinvent their reporting processes every time they enter a new market.
It reduces noise. It reduces cost. It reduces the guesswork that has hovered over ESG disclosure for years.
And most importantly, it pushes companies toward reporting that is grounded in real strategy, not corporate storytelling.
S1 and S2 aren’t just new standards — they’re a signal that the world is ready for sustainability reporting to grow up and join the rest of the financial ecosystem.
ESRS: How Europe Is Rewriting the Rules of Corporate Transparency
If IFRS S1 and S2 are about creating a global starting point, ESRS is Europe saying, “That’s great — but we’re going further.” And honestly, Europe isn’t just nudging companies; it’s dragging them into a new era of transparency, whether they’re ready or not.
2025 is the first year many companies feel the full weight of ESRS. And it shows.
So what makes ESRS different?
First, it doesn’t just ask companies what affects their bottom line. It also asks what companies are doing to the world around them. This idea—called “double materiality”—isn’t new, but ESRS makes it non-negotiable.
That single shift changes everything.
Under ESRS, you can’t simply say, “Climate risks might affect our operations.” You also have to answer, “How do we affect the climate, people, communities, and ecosystems?”
It’s deeper, wider, and far more demanding.
Why are companies adjusting so quickly?
Partly because they have no choice. If you operate in the EU, or do significant business there, ESRS touches you—directly or indirectly.
But there’s another reason: ESRS is reshaping expectations far beyond Europe.
Investors in the U.S. and Asia are already looking at ESRS-style disclosure as a sign of maturity. A company that meets these standards sends a simple message: “We understand our impact, and we’re not afraid to talk about it.”
That kind of confidence builds trust.
And what about older frameworks like GRI?
Europe used to be GRI’s strongest supporter. But once ESRS came knocking with more detail, more structure, and the backing of regulation, many companies started shifting their focus.
It’s not that GRI disappeared — it’s just no longer the anchor in Europe. ESRS has taken that role, and companies are learning how to balance both when needed.
Why this matters globally
Even if your company isn’t in Europe, chances are your customers or suppliers are. ESRS has a ripple effect:
Supply chains will be asked for better data
Mid-size companies suddenly have reporting expectations they never planned for
Sustainability teams are growing and becoming more specialized
ESRS isn’t just a European rulebook. It’s becoming the unofficial benchmark for what “serious reporting” looks like.
How Different Regions Are Choosing Their Reporting Paths in 2025
One of the most interesting things about sustainability reporting in 2025 is how differently the world is moving. There’s no single “right” way to report yet, and every region is shaping its own path based on culture, regulation, and investor expectations. It’s a little like watching cities prepare for the same storm—some board up windows, some reinforce roofs, others dig trenches. The goal is the same, but the approaches couldn’t be more different.
The Americas: Still Voluntary, but Quickly Growing Up
In the U.S. and much of the Americas, sustainability reporting still leans heavily on voluntary frameworks. SASB and TCFD continue to dominate because they appeal to investors who care about clarity and financial relevance. American companies want to show they understand climate risk and industry-specific materiality, but they don’t want reporting to become a regulatory maze. That said, 2025 is the year many U.S. companies start paying real attention to IFRS S1 and S2, especially those with global investors. Even without mandatory rules, the pressure to stay comparable is growing fast.
Asia-Pacific: The Quiet Achievers
APAC doesn’t always get the spotlight, but the region is quietly becoming one of the most disciplined adopters of climate-related reporting. Countries like Japan, Singapore, and Australia have embraced TCFD almost as if it were a native framework. They appreciate its structure and its focus on risk—something the region understands well given how climate-exposed many of its economies are. Now, in 2025, ISSB’s S1 and S2 are being adopted here faster than many expected. The logic is simple: if your markets depend on international investment, you align with global standards.
Europe, the Overachiever
Europe isn’t just adopting a framework—it’s rewriting the rulebook. ESRS has effectively transformed reporting from a voluntary gesture into a regulated expectation. Even companies outside Europe are feeling the pull because supply chains crossing into the EU must now provide clearer, more structured data. What stands out is how quickly European businesses are shifting away from older voluntary frameworks like GRI and adjusting to ESRS’s heavier, more detailed requirements. It’s demanding, yes, but it’s also forcing companies to grow up fast.
The big picture? 2025 isn’t a single reporting story — it’s three regional stories unfolding at the same time. And for global companies, the real challenge is learning how to stay fluent in all three without losing their voice.
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