A New Era of Corporate Reporting: What You Need to Know for 2025
Significant regulatory changes have ushered in a transformative era for corporate reporting, particularly in Environmental, Social, and Governance (ESG) practices. California has enacted three groundbreaking Climate Accountability Laws, while the European Union has introduced the Corporate Sustainability Reporting Directive (CSRD), marking a pivotal shift in how companies report on their sustainability efforts.
The Regulatory Landscape
These new laws will affect thousands of companies, requiring them to begin reporting or to shift the way they are reporting on ESG topics. Even businesses that fall below the regulatory thresholds are feeling the pressure, as suppliers and service providers must now adhere to heightened transparency standards. In today’s competitive landscape, strong ESG credentials are no longer optional—they’re essential for securing contracts and maintaining stakeholder trust.
Key Changes to Expect for 2025
Greater Granularity: Companies will need to provide more detailed data and context. It’s crucial to ensure a high degree of certainty in your data.
Holistic Understanding of Impact: Organizations must grasp their impacts, risks, and opportunities not only in their operations but throughout their supply chains.
Double Materiality Disclosures: For CSRD reporting, companies are required to demonstrate their double materiality process—how they identify and measure their impacts and risks, while also engaging external stakeholders.
Assurance Requirements: Assurance for emissions data is now mandatory, along with assurance for all disclosures in CSRD reports.
Focus Areas: Climate Risks and Reporting
As we navigate these regulatory shifts, climate risks have emerged as a primary theme, with numerous disclosure requirements centered on energy, emissions, water use, and worker health. Understanding these elements is critical for effective reporting.
California Climate Laws
California’s new laws are set to take effect with compliance deadlines looming in 2026. Key requirements include:
SB-253: Companies must disclose their Scope 1 and Scope 2 emissions, achieving limited assurance for these figures.
SB-261: Requires companies to publish a climate-related financial risk report biennially, in line with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
Download our status update for more information: HERE.
Preparing for Compliance
For companies preparing for these changes, here are some recommendations:
Carbon Footprint Assessment: Start by measuring your carbon footprint and understanding your carbon hotspots. Ensure the accuracy and boundaries of your data collection.
Budget for Assurance: Secure funding for assurance services and engage with assurance providers early to understand their processes.
Governance Structure: Establish a governance framework and engage decision-makers early in the process, especially if this is your first sustainability disclosure.
The CSRD: A Closer Look
The CSRD significantly increases reporting requirements for nearly 50,000 companies in the EU. It introduces the European Sustainability Reporting Standards (ESRS), which outline general disclosures and specific standards across environmental, social, and governance topics.
Key Principles to Consider
Double Materiality Assessment: Companies must evaluate both the impacts of their operations and the sustainability-related risks affecting their financial health.
Qualitative Characteristics: Sustainability reports should adhere to principles like relevance, faithful representation, and comparability to ensure quality and credibility.
External Assurance: Auditors with sustainability expertise will review reports for accuracy and completeness, ensuring adherence to new standards.
The Path Forward
As the landscape evolves, companies must prioritize high-quality data to meet stakeholder expectations. Even businesses not directly subject to new regulations will feel the impact of increased scrutiny around transparency.
At Uplift, we believe that sustainability communications balance science and art. As you prepare for increased reporting demands, consider the following questions:
What governance structure will best support your reporting?
How will you monitor regulatory changes?
Are your internal teams collaborating effectively to gather quality data?
How will you incorporate your company's values into your sustainability narrative?
Conclusion
The changes in corporate reporting driven by the new regulations are profound. Companies must adapt their reporting practices and be prepared for greater scrutiny from stakeholders. At Uplift, we guide organizations through this complex landscape, helping them craft compelling sustainability narratives supported by solid data.
For a deeper dive into these topics and more insights from our recent fall planning webinar series, watch the full session HERE.
Avoiding Greenwashing Guide
Accusations of greenwashing aren't just a hit to reputation; they present a new area of measurable and material financial risk for companies. It's about ensuring your statements aren't just words but are rooted in accuracy, transparency, and backed by credible evidence.
Download our guide which will introduce you to evaluating your marketing, communications, and report materials for greenwashing.
Click here to download our Guidebook.
The Uplift Agency
Uplift builds strategies, programs, and communication campaigns that advance ESG in workplaces, supply chains and communities.
We know how to navigate the road ahead because we’ve already been down it – 90 percent of our team has led environmental or social programs in corporations or nonprofits. Because ESG is all we do, our services are more comprehensive and integrated than most firms.
