Progress in companies’ sustainability reports: evidence for policy-makers looking to change the legislation

EU policy-makers are negotiating drastic changes proposed by the EU Commission to water down these rules as part of the first Omnibus on Simplification. The sudden U-turn and rushed legal process risks undermining momentum among the business community. Weakening the EU laws would roll back the progress made on transparency, data quality, and long-term climate planning at a time when consistency and ambition are most critical.

Our analysis shows how companies are responding to EU sustainability legislation, revealing positive developments in the transparency and quality of disclosures while also highlighting some persisting challenges:

Climate change and GHG emissions

• Ambitious climate targets have become standard business practice, with more and more companies committing to net-zero and aligning with EU goals. 
• Thanks to the EU Sustainability Reporting Standards, climate transition plans are increasingly structured around decarbonisation levers, making disclosures clearer and more comparable. 
• Forward-looking disclosures, such as planned investments and implementation challenges, are on the rise but still uneven. These insights are essential for demonstrating credible, future-ready climate strategies.
• GHG reporting across all scopes is also established among businesses, with the ESRS driving better data quality and consistency. 

Double materiality and due diligence

• The most effective disclosures are those that clearly reflect the company’s specific context—particularly its approach to the value chain and prioritisation. Companies disclosing less useful information tend to forgo specificity in favour of lengthy and generic process descriptions.
• Strong disclosures link directly to due diligence processes, yet many companies offer vague references without showing how due diligence shapes materiality assessments.
• The ESRS help companies balance broad strategic reporting with more detailed information on their impacts, risks, and opportunities. But most disclosures are still too vague—often missing how key issues affect people or the environment, or how this influences the company’s strategy and business model.

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Our analysts reviewed and assessed the sustainability information disclosed by 50 influential companies from the financial, textile, energy, agrifood and beverages, pharmaceuticals, mining and transportation sectors.

The complete research will be released this September, alongside a compilation of best practices.

Businesses require clarity, certainty, and stability to invest in sustainability reporting systems that meet market and stakeholder demands. The proposed rollbacks threaten not only environmental progress but also the credibility of EU leadership in sustainable finance. To preserve the achievements of the past decade and foster a forward-looking and competitive business environment, policy-makers in the EU Parliament must reject measures that weaken the CSRD and CSDDD and instead reinforce their consistent, effective application.

If you have any questions about the preliminary findings, or would like to share inputs, please get in touch with Susanna Arus at susanna.arus@frankbold.org or Lorena Bisignano at lorena.bisignano@frankbold.org.