Takeaways:

• Despite the EU’s CSRD recalibration, many firms continue sustainability reporting to meet investor and customer expectations.
• Over two-thirds of companies report tangible business value from sustainability disclosures, influencing strategy, risk management, and marketing.
• Technology and AI are rapidly reshaping sustainability reporting processes, improving data accuracy and efficiency.

A new PwC study shows that while some companies have slowed or paused sustainability reporting efforts following the recalibration of the EU’s Corporate Sustainability Reporting Directive (CSRD), a large number are forging ahead and sticking to their original timelines.

According to PwC’s Global Sustainability Reporting Survey, 2025 marked the year sustainability reporting “arrived with a bang.” Thousands of European companies published statements under the CSRD, while others adopted the International Sustainability Standards Board (ISSB) framework to align with global disclosure standards.

The study also noted a period of regulatory adjustment, with the EU working to reduce the number of organizations under CSRD’s scope, and the US Securities and Exchange Commission (SEC) still finalizing its own climate disclosure rules.

Read More: CSRD Sustainability Reporting at Risk: ECB Warns Lawmakers

Split Response to ‘Stop the Clock’ Directive

Out of the 496 companies surveyed, around 40% of those planning CSRD compliance intend to make use of the EU’s “stop the clock” directive, allowing them to delay mandatory reporting by up to two years.

However, another 40% stated they would continue reporting according to the original schedule, even when not legally required. Some are proceeding under CSRD, while others are following ISSB or Global Reporting Initiative (GRI) frameworks.

Companies choosing to press on cited growing stakeholder pressure from investors, customers, and regulators, all demanding clearer insights into how businesses are managing sustainability risks and opportunities.

Reporting Yields Tangible Benefits

PwC’s findings suggest that sustainability reporting is offering real business benefits beyond compliance. Over two-thirds of companies that have already reported under CSRD or ISSB frameworks said they had gained “significant” or “moderate” value from the process.

Those deriving the greatest value are using sustainability insights to guide business strategy, supply chain transformation, workforce development, marketing, and risk management. Among these firms, nearly 40% said sustainability data had a strong influence on corporate strategy, compared to just 11% of firms that reported little or no added benefit.

Tech and AI Powering New Efficiencies

Technology is emerging as a key driver of effective sustainability reporting. More than half of companies now use centralized sustainability data platforms and disclosure management tools.

The study also highlights a surge in the use of AI, with adoption nearly tripling in the past year. Companies are using AI tools to draft sustainability disclosures, identify risks, and improve data accuracy, underscoring the growing integration of technology into ESG reporting systems.

Also Read: The Rise of Mandatory ESG Reporting Under CSRD: What Organizations Need to Know

While regulatory timelines may have shifted, PwC’s survey suggests that many businesses see sustainability reporting not as a compliance exercise, but as a source of strategic and operational value, one that is reshaping how they plan, operate, and grow.

Follow more news and views via our Regulators and Featured Articles sections, and stay updated on the top ESG events to attend in 2025 for industry insights and networking.

Source: Sustainability Online