ESG Reporting Update
Contributor Spotlight: Camille Fordy
Camille Fordy is the Vice President and ESG Practice Lead at Summit Strategy Group, where she advises organizations on ESG strategy, reporting, and stakeholder engagement. With experience in government and a background in corporate sustainability, Camille helps clients navigate the complexities of sustainability in an evolving regulatory environment, delivering strategies that create long-term value and resilience.
Executive Summary
The focus on ESG reporting is shifting. While the term “ESG” faces greater scrutiny, regulatory and investor expectations for verifiable sustainability disclosures are increasing. Companies are moving toward investor-grade, auditable data tied to risk, resilience, and financial performance.
Preparing credible reporting aligned with emerging standards is critical to meeting compliance, stakeholder, and market expectations.
Regulatory and Market Context
Across markets, the emphasis is shifting toward financial materiality, resilience, and verifiable disclosures.
United States: Federal climate disclosure efforts remain uncertain as the SEC’s rule is stayed pending litigation.[1] Meanwhile, California’s SB 253 and SB 261 require large companies to disclose Scope 1–3 emissions and climate risks beginning in 2026, with phased third-party assurance requirements.[2]
Global: The EU’s CSRD is now in effect, requiring large companies with EU operations to report against detailed sustainability standards with phased assurance.[3] Other jurisdictions, including the UK, Canada, and Japan, are moving toward ISSB-aligned disclosure frameworks, further expanding global expectations for climate and sustainability reporting.
Investor Sentiment: While ESG-labeled investment funds are declining in the U.S., demand for credible, risk-focused sustainability data from institutional investors remains strong.[4]
Customer Sentiment: Consumers increasingly expect businesses to take credible sustainability action, but skepticism around greenwashing remains high.[5]
[1] DLA Piper, ESG Regulatory Update, March 2025.
[2] Reuters, Top 5 ESG Considerations for U.S. Investors Under Trump-Vance Administration, April 2025.
[3] Financial Times, EU moves to delay and ease corporate ESG reporting rules, April 2025.
[4] Reuters, Trump agenda drives record outflows from global sustainable funds, April 2025.
[5] Deloitte, Sustainability has staying power, January 2025.
Reporting Priorities for Corporates
Build a centralized ESG data and disclosure system: Collect, validate, and prepare emissions, climate-risk, and governance data for audit and assurance.
Design reporting for assurance: Align disclosures with external audit expectations under California and CSRD frameworks.
Adopt global reporting standards: Use TCFD and ISSB (IFRS S1/S2) frameworks; align EU operations with CSRD requirements.
Conduct a disclosure and governance gap assessment: Identify gaps in emissions tracking, climate risk analysis, and board oversight and governance.
Strengthen review of public sustainability claims: Vet claims through internal controls to minimize greenwashing and regulatory exposure.
Frame disclosures around sustainability risk and financial relevance: Focus reporting on material sustainability risk management, financial resilience, and regulatory compliance.
