What is ESG reporting?

Page date: Published 8 Nov 2024; updated 25 Mar 2026. 3 min read.

The article defines environmental, social and governance (ESG) as a framework for assessing a company’s or investment’s sustainability and ethical impacts. It traces the term to the UN Global Compact and the 2004 “Who Cares Wins” report. The three pillars cover environmental issues such as emissions, pollution, waste and energy efficiency; social issues such as diversity, labour standards, workplace safety and human rights; and governance topics such as management, equality, corruption, capital allocation and treatment of shareholders.

It describes reporting standards as setting metrics, calculation methods and disclosure formats so reports can be compared. The article says investors use ESG disclosures in investment decisions and claims strong ESG ratings can build trust and improve access to financing; it does not provide supporting data for those benefits.

The page discusses the EU’s Corporate Sustainability Reporting Directive (CSRD), saying it took effect in January 2023 and companies began complying in 2024, expanding the scope and detail of sustainability disclosures. This is a high-level, publication-era description of regulation, not a current determination of which companies must report or the applicable requirements. The article advises internationally active firms to track rules in each jurisdiction and notes reputational and financial consequences for non-compliance. Related links: Maritime; Technology; CSRD.