10 Reasons to Track a Corporate Carbon Footprint
1 min
Level
In this article, we’ll explain what a corporate carbon footprint is, why it’s important, how it is measured, and reasons why your company should track it too.
ESG / CSR
Industries
MEASURE
ACT
COMFORM
What is sustainability reporting and why is it important?
Level
Sustainability reporting isn’t just something companies do to tick a box anymore. It’s become a key part of how businesses build trust, manage risk, and show what they stand for.
“ In fact, a recent KPMG study found that over 96% of the world’s largest 250 companies now publish sustainability reports – a sign of just how central this has become. ”
And it’s not just about keeping regulators happy. Research from McKinsey suggests that companies that take environmental, social, and governance (ESG) issues seriously often end up in a stronger position – more resilient, trusted, and ultimately, more valuable.
Still, for many businesses, sustainability reporting can feel abstract. What does it really involve? What are the benefits beyond compliance? And how do you get started in a way that supports your wider sustainability strategy?
In this article, we’ll cover:
- What sustainability reporting is (and how it differs from ESG, CSR, and non-financial reporting)
- Why it matters – from managing risk to building trust
- Whether it’s mandatory (and where regulations are heading)
- How to choose the right reporting framework
- How to get started – step by step
What is sustainability reporting?
“ Sustainability reporting is about measuring and communicating how your business impacts the environment, society, and the economy. It involves collecting data on things like your carbon emissions, energy use, waste, water consumption, diversity, supply chain practices, and sharing that information in a structured way. ”
The goal? To give stakeholders – whether that’s customers, investors, employees, or regulators – a clearer picture of how your company is managing its responsibilities beyond just turning a profit.
There’s no one-size-fits-all format, but most reports follow recognised frameworks, like the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), or the newer European Sustainability Reporting Standards (ESRS). These frameworks help companies stay consistent and transparent in how they report their efforts.
“ Done well, sustainability reporting becomes a strategic tool – one that helps you understand where your biggest risks and opportunities lie, where you can improve, and how to track progress over time. ”
Close
How is sustainability reporting different from ESG, CSR, and non-financial reporting?
With so many overlapping terms, it’s easy to get confused. Here's how sustainability reporting fits into the bigger picture:
Sustainability reporting
Broad, strategic view of a company’s environmental, social, and economic impacts.
Stakeholder-focused and values-driven, sustainability reporting covers long-term impacts across people, planet, and profit.
ESG reporting
Investor-focused reporting on environmental, social, and governance issues.
Zooms in on financial risks and opportunities tied to ESG factors, using frameworks like SASB and TCFD/IFRS S2.
CSR reporting
Older, philanthropy-focused approach highlighting donations and community efforts.
Less strategic and data-driven than ESG or sustainability reporting, CSR reporting emphasises social initiatives.
Non-financial reporting
Covers all business disclosures that aren’t financial, including ethics and diversity.
Broadest term encompassing sustainability reports, but also includes non-ESG information like corporate ethics policies.
So while these terms overlap, their focus and audience differ:
| Term | Focus | Audience | Key takeaway |
|---|---|---|---|
|
Sustainability reporting
|
Broad, long-term view of environmental, social, and economic impact | Stakeholders (wide audience) | Strategic, values-driven umbrella for ESG and CSR |
|
ESG reporting
|
Financial performance and risk management | Investors, analysts | Uses similar data but focused on materiality to investors |
|
CSR reporting
|
Philanthropy, community engagement | Public, employees | Older, less data-driven, often highlights donations or volunteering |
|
Non-financial reporting
|
Any non-financial information (e.g., ethics, diversity) | Regulators, stakeholders | Broadest term, includes sustainability but not always ESG-focused |
Note: Many companies combine elements from each, depending on who they’re reporting to and what they want to communicate.
What are the benefits of sustainability reporting?
“ Sustainability reporting has become a key part of business strategy – not just for meeting regulations, but because it enables companies to understand risks, improve performance, and build trust with stakeholders. It helps companies turn data into action, whether that’s cutting emissions, identifying inefficiencies, or showing stakeholders they’re serious about long-term impact. ”
Here are some of the key ways it creates value:
Sustainability is closely tied to long-term resilience. With climate change, resource scarcity, and social pressures creating real risks for business, sustainability reporting helps companies identify those risks early and prepare for them.
According to the Carbon Disclosure Project (CDP), 52% of companies disclosed climate-related risks with potential for significant financial or strategic impact. At the same time, 63% identified opportunities linked to climate action, highlighting how sustainability reporting can surface both challenges and areas for growth.
By tracking resource use, emissions, and waste, businesses can pinpoint inefficiencies and fix them. Sustainability reporting often uncovers areas for improvement that lead to reduced operational costs, especially when integrated with energy-saving initiatives or smarter procurement practices.
A McKinsey study found that companies combining emissions reduction with cost controls achieved up to a 40% emissions cut and a 15% boost in financial performance.
With growing pressure from regulators, customers, and investors, businesses are making more complex decisions under greater scrutiny. A robust sustainability report offers a clearer view of performance and future risk, providing the insights needed to guide your long-term management strategy, sustainability priorities, and broader business decisions.
It also helps companies prepare for tightening regulations. For example, climate-related disclosures are now mandatory in many regions, and those who already have structured reporting processes in place are better positioned to comply.
Transparency is now expected, not optional. Customers, employees, investors, and business partners increasingly want to support companies that align with their values.
Sustainability reporting gives companies a way to show, not just say, what they stand for. It provides proof of action on issues like climate change, diversity, and ethical sourcing. According to the Edelman Trust Barometer, 88% of institutional investors say companies prioritising ESG initiatives are better long-term bets.
What is a sustainability reporting framework?
“ A sustainability reporting framework is a structured set of guidelines that helps companies decide what to report, how to measure it, and how to clearly and consistently report sustainability related information to stakeholders. ”
Think of it as a blueprint; it doesn’t dictate your goals or strategies, but it gives you the tools to communicate them in a way that’s meaningful to your audience. Frameworks help ground your commitments in credible data and align your disclosures with global expectations.
Some frameworks are broad and stakeholder-focused, while others are designed specifically for investors or regulators. Depending on your objectives, you might use just one or combine several to meet different needs.
Here’s a look at the most widely used sustainability reporting frameworks and what they offer:
GRI (Global Reporting Initiative)
Focus: Broad ESG impact across environmental, social, and governance topics
Best for: Stakeholder communication, overall transparency
Key features: Covers a wide range of sustainability topics; widely adopted; aligns with SDGs
SASB (Sustainability Accounting Standards Board)
Focus: Financially material ESG issues by industry
Best for: Investor-focused reporting
Key features: Industry-specific metrics, focused on financially material sustainability performance and impact on the company
TCFD / IFRS S2 (Task Force on Climate-related Financial Disclosures)
Focus: Climate-related risks and opportunities
Best for: Climate disclosure and risk management
Key features: Developed by the International Sustainability Standards Board (ISSB); focuses on governance, strategy, risk management, and metrics; adopted into IFRS
CDP (Carbon Disclosure Project)
Focus: Climate, water, and forest impact disclosures
Best for: Benchmarking environmental performance
Key features: Questionnaire-based; aligned with TCFD; includes scoring system
IIRC (International Integrated Reporting Council)
Focus: Integrated reporting of financial and non-financial performance
Best for: Communicating long-term value creation
Key features: Emphasises connectivity between ESG and financial data
CSRD (Corporate Sustainability Reporting Directive)
Focus: Mandatory ESG disclosures in the EU
Best for: EU-based or EU-operating companies
Key features: Requires audited, standardised sustainability disclosures aligned with ESRS
ISO 26000
Focus: Social responsibility and ethical behaviour
Best for: Voluntary guidance for CSR integration
Key features: Covers topics like human rights, labour, and governance
UN Global Compact / SDG reporting
Focus: Alignment with the UN’s Sustainable Development Goals
Best for: Companies committed to global responsibility
Key features: Encourages transparency across 10 principles of the UNGC
How to choose the right sustainability reporting framework
You don’t need to follow every framework, just the ones that make sense for your business. The right fit depends on your goals, stakeholders, and reporting requirements, whether driven by regulation or internal strategy.
Here are a few things to consider:
Your audience
For investors, use frameworks like SASB or TCFD/IFRS S2. For broader transparency, GRI is a strong choice.
Regulatory requirements
If you're operating in the EU, the CSRD may apply. Other regions may require climate disclosures under frameworks like CDP or IFRS.
Business priorities
Focus on frameworks that align with the topics most relevant to your impact, whether that’s climate, social issues, or governance.
Reporting maturity
New to reporting? Start with one flexible framework (like GRI) and build from there.
Tip: Choose the frameworks that help you stay compliant, communicate clearly, and keep your reporting focused on what matters most.
Is sustainability reporting mandatory?
Whether sustainability reporting is mandatory depends on where your business operates, your industry, and your size.
In some regions, particularly the EU, reporting is no longer optional. Under the Corporate Sustainability Reporting Directive (CSRD), thousands of companies are now required to disclose detailed sustainability information.
Other jurisdictions are following suit – the UK has introduced mandatory climate-related financial disclosures for large companies, and the US is rolling out stricter SEC rules for listed firms.
“ Even in places where it isn’t yet legally required, there’s growing pressure from investors, customers, and employees for businesses to be transparent about their environmental and social impact. In practice, many companies are choosing to report voluntarily, either to stay ahead of regulation or meet stakeholder expectations. ”
The future of sustainability reporting
While many companies are currently focused on meeting new regulatory requirements, sustainability reporting is moving far beyond basic compliance. Over the next few years, several trends are expected to reshape how businesses disclose and manage ESG data:
Double materiality
CSRD will require reporting on both financial impacts and environmental and social effects.
Companies must assess how sustainability issues affect them and how they impact people and the planet.
Digital & AI-driven
AI is enabling real-time ESG dashboards and automated data collection.
Automation is replacing static reports with continuous monitoring and integrated ESG systems.
Global standards
IFRS S1 and S2 are creating a consistent global approach to sustainability reporting.
Multinational companies will benefit from simplified, harmonised sustainability disclosures.
Value chain focus
Scope 3 emissions and supplier sustainability practices are taking centre stage.
Companies must work with suppliers and partners to improve transparency and resilience.
Independent assurance
Stakeholders expect reports to be verified, similar to financial audits.
External assurance enhances credibility and comparability of sustainability data.
“ These developments are shifting sustainability reporting from a tick-box exercise to an essential element of corporate strategy – one that shapes decision-making, strengthens stakeholder trust, and drives long-term business resilience. ”
Sustainability reporting in the United Kingdom
Sustainability reporting has become a core element of corporate governance in the UK, shaped by regulation, investor pressure, and evolving market expectations. Here’s what companies operating in the UK need to know:
UK sustainability reporting standards
The UK has introduced a mix of mandatory and voluntary reporting measures:
Companies Act 2006
Learn more
Large companies must disclose non-financial ESG information in their strategic reports.
UK Corporate Governance Code
Learn more
Applies to premium-listed companies, setting expectations for transparency on sustainability risks and governance.
Streamlined Energy and Carbon Reporting
Learn more
Requires large UK companies to report annual energy use, greenhouse gas emissions, and energy efficiency measures.
Mandatory climate-related disclosures
Learn more
Currently aligned with TCFD recommendations, these apply to large companies and financial institutions.
Upcoming change: The UK will adopt UK Sustainability Disclosure Standards (UK SDS), based on IFRS S1 and S2, with rules expected to apply from 2026, eventually replacing TCFD references in FCA disclosure rules.
Voluntary frameworks and standards
UK companies often adopt international sustainability reporting frameworks to align with global best practices and meet stakeholder demands. The most commonly adopted frameworks in the UK include:
| Framework | Focus | Best suited for | Mandatory / Voluntary |
|---|---|---|---|
|
🌍 Global Reporting Initiative (GRI)
|
Broad ESG issues across environment, social, and governance | Companies wanting comprehensive sustainability reports for stakeholders | Voluntary |
|
📑 Task Force on Climate-related Financial Disclosures (TCFD)
|
Climate-related risks and opportunities | Large UK companies, investor-focused climate reporting | Mandatory for large companies (moving to IFRS S1/S2 by 2026) |
|
📊 Carbon Disclosure Project (CDP)
|
Environmental impacts (climate, water, forests) | Companies aiming to disclose environmental data for benchmarking and investors | Voluntary |
|
📈 Sustainable Accounting Standards Board (SASB)
|
Industry-specific, financially material ESG topics | Investor-focused reporting, companies seeking detailed sector metrics | Voluntary |
|
📜 Corporate Sustainability Reporting Directive (CSRD)
|
Standardised ESG disclosures aligned with ESRS | UK companies operating in the EU or wanting EU-aligned reporting | Mandatory for in-scope EU companies |
Investor expectations
Investors continue to integrate ESG factors into decisions:
📜
Principles for Responsible Investment (PRI)
Many UK-based investors are signatories to the PRI, which promotes the integration of ESG issues into investment practice.
🏛️
UK Stewardship Code
This Code sets high standards for responsible investment, requiring signatories to report on how they have applied the Code's principles, including their approach to ESG issues.
🌍
Sustainable Finance Disclosure Regulation (SFDR)
Although primarily an EU regulation, UK investors and companies with operations in the EU are influenced by SFDR, which mandates transparency in sustainability-related disclosures.
Market trends
The UK market is experiencing a growing demand for sustainability from both consumers and businesses. Key trends include:
- Rising consumer pressure – Shoppers, particularly Gen Z and Millennials, increasingly support brands with verified sustainability credentials.
- Corporate science-based targets – Many organisations are now embedding SBTi-aligned net-zero goals directly into their core business strategies.
- Tech-driven reporting – Companies are adopting AI-powered ESG platforms to automate data collection and improve reporting accuracy.
- Tighter regulation – The upcoming UK Sustainability Disclosure Standards (UK SDS) and new supplier transparency rules are raising compliance requirements.
- Investor scrutiny and climate finance growth – Investors are demanding clearer ESG disclosures, while the UK continues to position itself as a hub for sustainable finance.
How to get started with sustainability reporting
Getting started with sustainability reporting doesn’t have to be overwhelming. By breaking the process into a few clear steps – from identifying what matters most to choosing the right framework and collecting the right data – you can build a report that’s both practical and meaningful.
Here’s a simple step-by-step approach to get started:
The steps below outline how to create a sustainability report:
-
1. Identify what matters most 🔍
Start by figuring out which sustainability topics are most relevant to your business and stakeholders. This could include emissions, energy use, supply chain ethics, employee wellbeing, or waste. Tools like stakeholder surveys or materiality assessments can help you focus your efforts where they’ll have the most impact.
-
2. Choose your reporting framework 📑
Pick the framework (or combination) that best fits your goals, industry, and legal obligations. Whether it’s GRI for broad transparency, SASB for investor relevance, or CSRD for EU compliance, your framework will shape what and how you report.
-
3. Collect your data 📊
You’ll need both qualitative insights and hard numbers – from emissions data and diversity metrics to supply chain policies and social initiatives. Make sure your data sources are reliable, and validate your figures where possible to maintain credibility.
-
4. Build your report 🏗️
Organise your content around the framework’s structure. Use plain language, include data visuals where helpful, and explain the story behind your numbers. Many companies also include case studies or goals to show progress and ambition.
-
5. Publish and engage 📢
Once the report is ready, share it on your website, with investors, internally, and across other relevant channels. The aim isn’t just to tick a box, but to open up a conversation with the people your business impacts.
-
6. Track progress and keep improving 🔄
Sustainability reporting isn’t a one-off task – it’s part of an ongoing process. Keep reviewing your data, tracking against your goals, and updating your stakeholders on progress year over year.
Top 10 sustainability reporting software solutions for 2025
Sustainability reporting can quickly become complex. From gathering Scope 1, 2, and 3 emissions data to aligning with multiple frameworks like GRI, SASB, and CSRD, businesses often face:
- Data silos – information scattered across departments and suppliers
- Manual processes – spreadsheets that make tracking and auditing difficult
- Changing regulations – keeping up with evolving ESG disclosure rules
“ This is where sustainability reporting software comes in. The right platform automates data collection, ensures compliance with multiple frameworks, and simplifies the reporting process - turning a resource-heavy task into a strategic advantage. ”
Below, we’ve compiled a comparison of the top 10 sustainability reporting tools in 2025, with Greenly ranked #1 for its comprehensive carbon management capabilities and ease of use.
| Rank | Tool / Platform | Best for | Key features | Pricing model |
|---|---|---|---|---|
1 |
Greenly | SMEs and large enterprises looking for all-in-one carbon management and ESG reporting | - Automated carbon footprint tracking - LCA and Scope 1, 2, 3 analysis - Reporting for CSRD, IFRS S1/S2, GRI, SASB - Supplier engagement tools |
Subscription-based; tailored to company size |
2 |
Sphera | Large enterprises with complex reporting needs | - Advanced ESG data management - Risk and compliance dashboards - Supports multiple reporting frameworks |
Enterprise licensing |
3 |
Workiva | Companies focused on financial + sustainability reporting integration | - Unified platform for SEC filings and ESG data - Cloud collaboration - SASB, TCFD alignment |
Subscription-based |
4 |
Persefoni | Organisations needing carbon accounting expertise | - AI-driven carbon data insights - Financial-grade climate disclosures - Partnership with consulting firms |
SaaS model |
5 |
Envizi (by IBM) | Enterprises aiming for deep analytics | - ESG reporting automation - Data visualisations and KPI dashboards - Supports CDP submissions |
Subscription-based |
6 |
Cority | Industries with strict compliance requirements (e.g., manufacturing) | - EHS and ESG integration - Data audit trails - Assurance-ready reports |
Tiered pricing |
7 |
FigBytes | Mid-sized businesses looking for ESG strategy alignment | - Visual ESG roadmapping - SDG reporting modules - Multi-framework compatibility |
SaaS model |
8 |
Diligent ESG | Companies prioritising governance and board-level reporting | - Governance and risk management focus - Board-ready dashboards - ESG performance tracking |
Subscription-based |
9 |
VelocityEHS | Businesses needing scalable sustainability management | - Environmental data management - KPI and target tracking - Cloud reporting tools |
SaaS model |
10 |
Measurabl | Real estate and property management firms | - Energy and sustainability metrics for buildings - GRESB and CDP reporting support - Automated data capture |
Subscription-based |
How to choose the right sustainability reporting tool
The best sustainability reporting software depends on your organisation’s size, reporting requirements, and future ESG goals. When evaluating tools, consider:
📑
Framework coverage
Does it support the standards you need to report under, such as CSRD, GRI, or IFRS S1/S2?
⚙️
Automation
Can it streamline data collection and reduce reliance on manual spreadsheets?
📈
Scalability
Will it handle growing data volumes, multiple sites, or complex supply chains?
✅
Assurance-ready outputs
Does it provide clear dashboards and audit-friendly reports for stakeholders?
Choosing a tool that meets these criteria ensures sustainability reporting is accurate, efficient, and a true driver of long-term business value.
Sustainability reporting quick guide: Summary FAQ
It means collecting and disclosing data on how a company affects the environment, society, and economy – from emissions and energy use to supply chain practices and diversity initiatives – and presenting it in a structured, framework-aligned report.
Not everywhere. In the EU, the CSRD now makes reporting mandatory for thousands of companies. The UK has introduced climate-related financial disclosures, and the US is tightening SEC rules. Elsewhere, many companies report voluntarily to meet investor and stakeholder expectations.
- Sustainability reporting: Broad, stakeholder-focused, covers environmental, social, and economic impacts.
- ESG reporting: Investor-focused, measuring how ESG factors affect financial performance and risks.
- CSR reporting: Older, philanthropy-focused, less strategic or data-driven.
- Non-financial reporting: Any non-financial disclosure (including sustainability), often for regulatory compliance.
Popular choices include GRI for overall transparency, SASB and IFRS S1/S2 for investor-focused reporting, CSRD and ESRS for EU requirements, CDP for environmental benchmarking, and ISO 26000 for CSR integration.
Most companies issue annual reports alongside financial statements. Organisations with ambitious climate targets or regulatory obligations may release interim updates to track progress.
Close
How Greenly can support your sustainability ambitions
Sustainability reporting is only one piece of the puzzle. To truly move from reporting to real climate impact, businesses need tools that can measure, manage, and reduce emissions across their entire value chain.
Greenly offers a comprehensive suite of sustainability solutions designed to streamline reporting and strengthen climate action:
| Greenly Solutions | What It Provides |
|---|---|
|
Carbon footprint assessments
|
Measure Scope 1, 2, and 3 emissions across operations, supply chains, and products with precision. |
|
Compliance-ready reporting
|
Produce disclosures aligned with GRI, CDP, TCFD/IFRS S2, and CSRD, ensuring alignment with evolving regulations. |
|
Life Cycle Assessments (LCA)
|
Gain a full understanding of product and service environmental impacts to guide sustainable decision-making. |
|
Decarbonisation strategies
|
Set science-based targets and build actionable, high-impact emission reduction plans with expert support. |
|
Sustainable procurement support
|
Identify greener suppliers and improve sustainability performance throughout your value chain. |
Whether you're reporting to stakeholders, preparing for regulation, or looking to build a long-term climate strategy, Greenly’s platform and team are here to help. Get in touch to see how Greenly can support your goals.
Sources:
- KPMG: The State of Sustainability at the World’s Top Firms, Sustainability Magazine
https://sustainabilitymag.com/articles/kpmg-the-state-of-sustainability-at-the-worlds-top-firms - McKinsey & Company, The ESG Premium: New Perspectives on Value and Performance
https://www.mckinsey.com/capabilities/sustainability/our-insights/the-esg-premium-new-perspectives-on-value-and-performance?utm_source=chatgpt.com - Greenly, What is ESG Reporting and Should You Be Doing It?
https://greenly.earth/en-gb/blog/company-guide/what-is-esg-reporting-and-should-you-be-doing-it - Greenly, The Sustainability Accounting Standards Board (SASB)
https://greenly.earth/en-gb/blog/company-guide/the-sustainability-accounting-standards-board-sasb - Greenly, The GRI (Global Reporting Initiative): How to Implement It
https://greenly.earth/en-gb/blog/company-guide/the-gri-global-reporting-initiative-how-to-implement-it - Greenly, TCFD Standards: All You Need to Know
https://greenly.earth/en-gb/blog/company-guide/tcfd-standards-all-you-need-to-know - Greenly, What Are IFRS Sustainability Disclosure Standards?
https://greenly.earth/en-gb/blog/company-guide/what-are-ifrs-sustainability-disclosure-standards - Greenly, CSR Meaning: All You Need to Know
https://greenly.earth/en-gb/blog/company-guide/csr-meaning-all-you-need-to-know - CDP, CDP 2023 Disclosure Data Factsheet
https://cdp.net/en/insights/cdp-2023-disclosure-data-factsheet - McKinsey & Company, Decarbonize and Create Value: How Incumbents Can Tackle the Steep Challenge
https://www.mckinsey.com/capabilities/sustainability/our-insights/decarbonize-and-create-value-how-incumbents-can-tackle-the-steep-challenge?utm_source=chatgpt.com - Edelman, 2020 Institutional Investor Trust Report
https://www.edelman.com/sites/g/files/aatuss191/files/2020-11/Edelman%202020%20Institutional%20Investor%20Trust_FINAL.pdf - Greenly, What is the Corporate Sustainability Reporting Directive (CSRD)?
https://greenly.earth/en-gb/blog/company-guide/what-is-the-corporate-sustainability-reporting-directive-csrd - Greenly, UK Companies Act 2006: Objectives and Environmental Concerns
https://greenly.earth/en-gb/blog/company-guide/uk-companies-act-2006-objectives-and-environmental-concerns - UK Government, Academy Trust Financial Management: Good Practice Guides
https://www.gov.uk/government/publications/academy-trust-financial-management-good-practice-guides
More articles
View all
Top 10 Carbon Management Software
1 min
Level
In this article, we’ll explore five of the leading carbon management software platforms available today. Whether you're looking to measure your carbon footprint, create actionable decarbonisation plans, or meet regulatory requirements, these tools can help you build a more sustainable future.
The Carbon Border Adjustment Mechanism (CBAM)
14 min
Level
In this article, we break down what the EU CBAM is, how it works, and what businesses need to do to comply.
Decarbonisation: what it is and why it matters
1 min
Level
What is decarbonisation and why is it urgent? Learn practical steps companies can take to support the global move toward net zero emissions.