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What is ESG reporting?


By Ayna Custovic

ESG reporting is a framework for evaluating and disclosing a company's performance on various environmental, social, and governance factors. These factors are crucial for assessing a company's performance, as they help indicate long-term sustainability and provide insights into how a company is managing its impact.

With ESG reporting now mandated as a requirement for most major companies, it is becoming increasingly important. Many businesses struggle to know where to start, what their responsibilities are, and what the benefits of ESG reporting are for their business.

That’s where neoeco comes in - our enterprise-grade software makes ESG reporting simple. Our platform integrates with your accounting software, using AI automation to match your business transactions to key databases and applying industry-leading methodologies to deliver precise and granular audit-ready reports.

What exactly does ESG reporting include?

Environmental factors: These focus on a company's impact on the environment, including carbon emissions, water use, land use change, waste management, energy consumption, and efforts undertaken by the company to mitigate climate change.

Social factors: These refer to how a company interacts with its employees, communities, and other stakeholders, including diversity and inclusion initiatives, labour practices, and human rights issues.

Governance factors: These assess the internal structures and practices that govern a company's operation, including corporate ethics, compensation, transparency, and risk management.

Why does your company need ESG Reporting?

Compliance and risk management: With the growing recognition of ESG issues, regulators worldwide are introducing new reporting requirements to improve corporate transparency and accountability. Companies that fail to comply risk fines, penalties, and reputational damage. Companies can avoid fines and penalties by complying with regulations while demonstrating their commitment to responsible business practices.

Demand from investors: Investors increasingly use ESG as a key criterion in decision-making. Excelling in ESG reporting and performance can lead to increased investor interest and access to capital.

Expectations from stakeholders: Stakeholders, including customers, employees, and communities, place greater importance on corporate responsibility. ESG reporting helps companies meet these growing expectations by demonstrating their commitment to sustainable, ethical, and transparent business practices.

Competitive advantage: With investors, customers, and employees placing greater importance on sustainability and social responsibility, transparent ESG reporting can put you ahead of competitors in attracting significant investment in top talent and building a dedicated customer base and workforce.


ESG reporting enables companies to measure, manage, and disclose their sustainability efforts and impacts and is becoming increasingly important as governments and stakeholders demand transparency and accountability from companies. By reporting performance on environmental, social, and governance factors, companies can build trust, mitigate risks, and drive positive change for people, profit, and planet.

If you’re interested in discovering how neoeco’s ESG accounting software can help your business navigate its sustainability journey and transform ESG reporting from a regulatory requirement into a strategic advantage, get in touch today and schedule your free demonstration.

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