Sustainability reporting has become more structured, more data-driven and increasingly regulated.
That direction of travel is only accelerating. In the UK, the FCA has recently consulted on mandatory sustainability-related reporting, signalling a clear move towards more consistent, decision-useful disclosures for a wider set of companies, not just those already reporting under existing regimes.
But the real challenge hasn’t changed.
Most organisations don’t struggle because they can’t produce a report. They struggle because they haven’t built the capability behind it: governance, ownership, data quality, and decision-making.
That’s why sustainability reporting so often becomes an annual scramble, and why it rarely delivers the strategic value that regulators are increasingly trying to drive.
Drawing on our experience supporting organisations through CSRD, TCFD, SECR and broader sustainability reporting, we see a consistent pattern. Companies tend to move through recognisable stages of maturity. The organisations that progress fastest treat reporting as capability-building, not content production.
In practice, most organisations find themselves operating within one of five broad stages of reporting maturity, defined less by the content of the report itself and more by the strength of the governance, data and accountability that support it.
Stage 1 - “We have a story”
At this stage, reporting is largely narrative. The organisation can describe its ambitions, initiatives and commitments, but their performance information might be limited.
This is a common starting point, but it’s increasingly fragile. As regulatory expectations rise, a story without evidence can quickly become a risk.
Stage 2 - “We have a report”
You might already have a formal report is existence, often prompted by an investor, customer or regulatory expectations.
The output may look credible, but the process is still production-led. This could involve last-minute inputs, manual data gathering, unclear ownership, and limited repeatability.
Design may also create a false sense of maturity. A report can look strong while the foundations remain weak.
Stage 3 - “We have data”
This is where your metrics become more consistent and structured. Your definitions improve and data collection starts to stabilise.
However, this stage is often the most resource-intensive because it exposes gaps, such as:
It’s also where many organisations drift into volume without clarity. This often means more data and more pages, but limited insight.
Stage 4 - “We have governance and accountability”
This is where your reporting starts to resemble financial reporting.
You see:
This stage matters more than ever as sustainability information becomes increasingly integrated into mainstream corporate reporting, both under CSRD and within evolving UK regulation.
It’s also where judgement becomes unavoidable. Companies have to make defensible choices about what matters most, rather than hiding behind exhaustive lists.
Stage 5 - “Sustainability is managed, not just reported”
Stage 5 reporting is not “more comprehensive.” It’s more useful.
At this stage, sustainability reporting supports how the business is actually run:
Ironically, Stage 5 reporting often feels less polished, but more credible. It prioritises coherence, realism and accountability over performance.
Why many organisations stall
Most companies don’t stall due to lack of ambition. They stall due to two predictable traps.
1) Confusing volume with maturity
As requirements expand, organisations respond by producing more content. But credibility rarely comes from length. It comes from clarity, prioritisation and defensible judgement.
2) Treating design and substance as separate
Many reporting projects still split into two disconnected streams:
This separation creates inefficiency and inconsistency — and it often undermines trust. If the structure of a report doesn’t reflect how sustainability is governed and managed, it will feel ‘assembled’ rather than coherent.
What moving up the curve looks like
Progress is rarely linear, but the moves that matter are consistent:
The role of sustainability reporting is changing
Sustainability reporting is no longer mainly about demonstrating commitment.
It’s increasingly about demonstrating management capability.
As regulatory expectations continue to converge, through CSRD, UK reforms and global standards, the organisations that treat reporting as a tool to build stronger governance, clearer decision-making and more robust data will be far better placed to respond.
Need help with your sustainability reporting?
If you’re navigating sustainability reporting challenges, whether preparing for CSRD, responding to UK regulatory change, or strengthening existing disclosures, we’d be happy to talk.
About the authors
Challenge Sustainability supports organisations to build the foundations for credible sustainability reporting — from strategy, targets and governance to materiality, data systems and regulatory compliance.
AB Brand and Marketing helps organisations turn complex reporting requirements into clear, accessible and coherent communications through design, structure and stakeholder-focused storytelling.