Why are US Companies Ditching Sustainability Reports?
Issuing annual sustainability reports has become a well-established practice for corporates, enabling transparency around ESG performance.
Yet, in the first half of 2025, US public companies showed a sharp decline in voluntary sustainability filings, marking a significant shift in ESG communications strategy though not necessarily a retreat from sustainability itself.
The Conference Board (CB), a non-profit business membership and research organisation, has carried out an analysis of the top 3,000 largest US companies, in partnership with its data partner, ESGAUGE.
A drop in reports
Between January and June 2025, only 432 companies in the Russell 3000 index filed a sustainability report.
Thatās a 52% drop compared to the same period in 2024, when 831 companies had done so, according to the analysis.
Major corporations including Adobe, Citigroup, General Motors and Uber were among those that filed in 2024 but have yet to publish in 2025.
However, experts are not interpreting this as a mass withdrawal from ESG principles. Instead, it is being described as a āstrategic recalibrationā.
āThereās been such a shift this year in the US,ā Andrew Jones, Principal Researcher at the Conference Boardās Governance and Sustainability Center, told Trellis.
āThe new administration has a very different kind of mandate when it comes to climate change and environmental issues and DEI.
"Thatās introduced new risk dynamics.ā
Policy shifts and pressure
Much of the slowdown can be attributed to the complex and shifting global regulatory landscape.
In particular, the European Unionās Corporate Sustainability Reporting Directive (CSRD) and Californiaās climate disclosure laws (SB 253 and SB 261) are set to take effect in the next 12ā24 months.
Many firms are delaying voluntary reports while they assess how to comply with these mandatory frameworks.
The evolving policy environment in the US is also contributing to the pause.
Recent federal-level changes in climate, energy and disclosure regulation have raised the legal and reputational stakes for ESG statements.
Companies, particularly in politically charged sectors, are adopting more cautious language and are subjecting their disclosures to more rigorous legal and compliance reviews.
A recent survey of 125 ESG executives by The Conference Board (May 2025) highlighted that climate communication is especially under scrutiny.
As a result, organisations are reassessing the tone and content of their reports, often shifting towards risk-based, financially material disclosures instead of broader aspirational narratives.
The integration trend
Another emerging trend is the integration of ESG into mainstream financial reporting.
Some companies are opting to embed ESG metrics and commentary into 10-K filings, investor presentations or earnings calls rather than publishing separate sustainability reports.
This move, driven in part by investor fatigue with boilerplate sustainability content, reflects a pivot towards data that directly links ESG to financial performance and risk.
Rather than abandoning sustainability efforts, companies are prioritising relevance, materiality and strategic alignment.
This may ultimately drive better quality disclosures that serve investor needs more effectively.
The future of reporting
Andrew does not believe that the importance of sustainability reporting has diminished. He says: "While a temporary pause in voluntary reporting may be warranted, sustainability disclosures remain essential: customers, employees, investors, communities and suppliers continue to depend on them, regardless of regulatory mandates."
He adds:ā "In this context, companies have an opportunity to sharpen the strategic purpose of reporting and enhance internal governance, data quality and cross-functional coordination ahead of emerging requirements.
"As sustainability reporting evolves into a regulated, risk-managed function, firms that align early with business priorities, legal obligations and material risks will be best positioned to lead."
