ESG Pressure Rises Despite Regulatory Rollbacks

A Growing Gap Between Policy and Practice

A new PwC Global Survey shows that the pressure on companies to report transparently on sustainability is not slowing down — even as some regulators in Europe and the U.S. are seeking to ease or delay ESG reporting requirements.

According to the survey, nearly two-thirds of companies say stakeholder expectations for sustainability data have increased over the past year. Investors, customers, and business partners are driving this momentum — not regulators.

This signals a widening gap: while policymakers debate simplification, market participants are demanding more depth, comparability, and assurance in ESG reporting.

Stakeholder Pressure Outpaces Regulation

PwC’s findings underline a clear trend:

• Investors are integrating ESG data directly into valuation models and capital allocation decisions.
• Customers and suppliers increasingly require sustainability disclosures along the value chain.
• Employees and younger talent prefer employers who can demonstrate measurable impact.

This creates a dynamic where the business case for ESG disclosure has become stronger than the legal one. For many companies, sustainability reporting is now a prerequisite for trust and access — to markets, capital, and partnerships.

Why Simplification Isn’t Simplifying

While policymakers in Brussels and Washington discuss how to “cut red tape,” companies on the ground report that fragmentation and uncertainty are the real obstacles.
Simplification often translates to shifting, not reducing, complexity — as firms must still respond to a patchwork of investor questionnaires, customer requests, and voluntary standards.

Instead of reducing workload, the lack of harmonization creates new reporting inefficiencies and data silos.

How We Help Companies Respond

At Daato (part of EQS), we enable companies to meet these rising expectations — efficiently and with confidence.
Our CSRD Reporting module helps organizations structure, collect, and disclose sustainability data aligned with European standards.
The CO₂ Management and Target Setting module supports companies in measuring emissions and defining credible reduction pathways.
Together, these tools provide a clear framework for data quality, audit readiness, and stakeholder communication — helping businesses move beyond compliance and turn ESG reporting into strategic value.

From Obligation to Opportunity

The PwC survey confirms what leading companies have already recognized: sustainability disclosure is becoming a competitive differentiator.
Those who invest early in robust ESG data systems will be able to navigate shifting regulations while meeting growing stakeholder demands.

In short — the pressure is not going away. But with the right approach, it becomes an opportunity to build trust, resilience, and long-term value.

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