In 2025, the ESG landscape is marked by contradiction. On one hand, we’ve seen rollbacks in regulatory momentum across some markets, especially in regions grappling with political pushback or economic pressure. On the other hand, global expectations, from investors, consumers, employees and even boards, are becoming sharper, more consistent and more demanding. What does this mean for companies? Simply put: just because ESG reporting isn’t required, it doesn’t mean it’s no longer relevant. In this blog, we explore why forward-thinking organizations continue to embrace ESG transparency in a shifting regulatory environment, what value it creates beyond compliance and how businesses can leverage ESG data as a strategic tool for trust, resilience and leadership.
The Shifting Regulatory Landscape: A Moment of Recalibration
The global ESG regulatory landscape is in flux. While Europe has taken the lead with initiatives like the Corporate Sustainability Reporting Directive (CSRD) and ISSB-aligned adoption across multiple jurisdictions, these frameworks are continually evolving. The EU has introduced phased timelines and, through the Simplification Omnibus, is actively working to harmonise and consolidate overlapping sustainability regulations. While the original CSRD scope required around 50,000 companies to comply, recent revisions have significantly reduced that number, easing the immediate burden on businesses while still keeping long-term accountability in focus. This reflects an important trend: even proactive regions are reassessing implementation strategies to make sustainability reporting more scalable and effective.
Elsewhere, regulatory recalibration is also in motion. In early 2025, the US Securities and Exchange Commission (SEC) scaled back elements of its climate disclosure rule, excluding Scope 3 reporting and softening climate-related provisions following public feedback. Other jurisdictions, including several in Asia-Pacific, are navigating their own balance between local realities and global ESG expectations.
This mixture of progress and adjustment has prompted a key question: if the rules are shifting, does ESG reporting still matter? The answer lies in a simple truth: ESG was never just about regulation. From the start, it has been about risk management, long-term value creation, trust and none of these go away just because a government eases up.
Stakeholder Expectations Are Steady And Rising
While regulators may adjust course, stakeholders are doubling down. ESG remains front and centre for:
- Investors who are still factoring ESG into risk assessments and portfolio decisions. According to a recent Global Investor Survey, 76% of investors still want companies to report ESG performance using a recognized standard.
- Supply chain partners who rely on ESG reporting to validate compliance, reduce reputational risks, and meet their own disclosure obligations.
- Employees who seek out employers with inclusive cultures, transparent practices and a visible purpose.
- Customers who are increasingly values-driven, with Gen Z and millennials leading the demand for ethically aligned brands.
For these stakeholders, ESG is not a trend. It’s a filter through which they decide where to work, invest, buy, and collaborate.
From Compliance to Competitive Advantage
Reporting for the sake of compliance can feel like a box-ticking exercise. But when approached strategically, ESG reporting becomes a differentiator:
- It builds investor confidence through transparency.
- It signals operational maturity and future-readiness.
- It enables better decision-making, using data that connects sustainability performance with business outcomes.
- It attracts talent aligned with purpose.
- And crucially, it allows organisations to shape their own narratives, rather than letting third parties fill in the gaps.
As the regulatory tide ebbs and flows, companies that maintain consistent, credible reporting are better equipped to seize opportunities, respond to risks, and influence how they are perceived.
The Risk of Disappearing from the ESG Conversation
When companies step back from ESG reporting simply because the rules allow it, they risk more than regulatory non-compliance down the line. They risk:
- Losing visibility among investors who track ESG indexes.
- Damaging credibility with clients, especially B2B partners in regulated sectors.
- Falling behind peers who are using ESG insights to drive innovation, resilience and cost savings.
Silence speaks volumes. In a transparency-first world, the absence of ESG data can be interpreted as a lack of action, or worse, a lack of values.
How to Stay Ahead Without Being Told To
So, how do businesses approach ESG reporting when it’s no longer strictly mandatory?
- Know your stakeholders: Start with materiality. What issues matter most to your investors, customers and employees?
- Focus on consistency: Even if frameworks aren’t enforced, choose one (such as GRI, SASB, or ISSB) and stick to it. This builds credibility over time.
- Prioritise quality over quantity: It’s better to report meaningfully on fewer topics than to dilute with overgeneralised disclosures.
- Leverage digital platforms: ESG software, like Rimm’s, streamlines data collection, ensures traceability and helps you monitor performance.
- Treat reporting as a communication tool: This isn’t just for regulators, it’s for your stakeholders. Use ESG to tell your story.
Why We Still Believe in ESG Reporting
At Rimm, we’ve always believed that ESG is about creating a blueprint for better business. While frameworks evolve and policies shift, the fundamentals remain the same: transparency builds trust, data builds insight and consistency builds credibility.
Our platform is designed not just to help companies meet disclosure requirements, but to unlock value from the process. From guided assessments to benchmarked comparisons and impact storytelling, we help organizations turn ESG from a burden into a business asset. In conversations with clients across Asia, Africa, Europe and the Middle East, we’re seeing the same thing: the companies that are leaning into ESG, even without a mandate, are the ones emerging as leaders in their markets.
ESG Is an Expectation, Not a Rule
Regulations may ebb. But expectations rise. And in an increasingly connected, values-conscious world, the absence of ESG reporting is not neutrality; it’s a risk. Companies that continue to lead with transparency, consistency and impact will not only weather the ESG recalibration, they’ll define the next era of sustainable business.