Reporting Matters 2025: Sustainability Disclosure Moves from Compliance to Strategy

The World Business Council for Sustainable Development (WBCSD) has released its 13th edition of Reporting Matters, titled “Embedding Change, Accelerating Impact.” The report underscores a pivotal shift in corporate sustainability reporting, positioning it as a strategic lever for transformation rather than a compliance exercise.
Drawing on an analysis of 185 leading companies, the report highlights how mandatory frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB) are reshaping disclosure practices. Nearly half of reviewed companies are already aligning with CSRD requirements, signaling a rapid move toward standardized, comparable data.
Key Findings: Alignment Rising, Execution Lagging

  • Mandatory alignment accelerates. Approximately 48% of companies indicate alignment with or preparation for CSRD—evidence that the regulatory shift in the EU is already influencing global reporting behavior.
  • Integrated reporting on the rise. Stand-alone sustainability reports decreased from 62% in 2023 to 54% in 2025), and the share of combined or integrated reports grew by 11%, reflecting deeper linkage between financial and sustainability information.
  • Double materiality becomes mainstream. 83% of companies now disclose a double materiality assessment, up from 77% last year – confirming its emergence as a global norm, not just an EU requirement.
  • Strategy is there – execution is not. While 92% of reports articulate how sustainability fits into corporate strategy, only 71% provide a clear roadmap, operational plan, or financial quantification of sustainability impacts.
  • Governance shows mixed progress.
    • 66% of reports disclose board-level sustainability expertise or training.
    • 39% show dedicated board oversight roles.
    • But linking executive pay to sustainability declined by 4% compared to last year, suggesting accountability mechanisms are not keeping pace.

Why This Matters for Practitioners
The findings reinforce a broader trend: reporting is no longer simply about meeting disclosure requirements. Instead, it is becoming a tool to drive strategic alignment, operational transformation, and value-chain engagement.

  • Regulation is shaping global norms. CSRD and ISSB appear to be accelerating convergence around consistent metrics, controls, and processes.
  • High-quality reporting requires systems, not storytelling. Limited execution detail such as financial links, KPIs, implementation plans indicates that many companies still lack the internal infrastructure needed for credible transition-oriented reporting.
  • Governance is becoming a differentiator. Board expertise, responsibility, and incentive structures increasingly signal the seriousness of a company’s sustainability commitments.

Implications for EMDEs and SMEs
For emerging markets and smaller companies, where sustainability reporting ecosystems are less mature, the report offers clear signals:

  • Expect rising expectations as CSRD- and ISSB-driven practices diffuse globally.
  • Capacity building is critical, particularly in double materiality, value-chain data, and linking sustainability with finance.
  • Advisory and development institutions (including IFC) can play a key role in closing the execution gap by supporting data systems, governance capabilities, and implementation planning.
    Takeaway for the Beyond the Balance Sheet Platform: Disclosure as a Strategic Tool
    For the Beyond the Balance Sheet audience, the core message is clear:
high-quality sustainability reporting is a strategic capability, not an annual compliance task.
    As companies face growing regulatory, investor, and market expectations, those that invest in execution—data systems, controls, governance, and strategic integration—will be better positioned to translate sustainability commitments into real-world impact.
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