Last month, I blogged on EFRAG’s 2026 State of Play report. That report used ESRS reporting to track trends between inaugural CSRD reports and available 2026 reports. However, EFRAG isn’t the only one researching these trends. A group of researchers recently published a study in Nature Communications. It assesses data transparency in light of the ESRS along with emerging trends in ESG performance. The study’s main findings are summed up by its authors, who state:
“We assess ESG transparency based on disclosures aligned with the European Sustainability Reporting Standards (ESRS) and evaluate ESG performance using extracted numerical indicators. Results reveal a pronounced transparency gap: firms in the top ESG rating decile disclose 22% more indicators than those in the bottom decile, although this gap narrows over time. Performance trends are uneven: while most social indicators remain largely stagnant, except for gains in gender equality, environmental indicators show some improvement. Reported scope 3 emissions increase sharply, largely reflecting improved disclosure. Our open-source framework enables systematic tracking of corporate ESG efforts.”
Some are pointing to these results as evidence that disclosure regimes do not drive ESG performance. However, I don’t think we have enough data to make such broad claims at this juncture. Companies have reported under the ESRS for only two years. Part of the logic behind disclosure regimes is that the data will be analyzed, deficiencies will be called out, and stakeholders will pressure companies to improve. Currently, researchers, like those behind this study, are poring over the data. The discrepancies that they find may drive stakeholders to demand action. It is unfair to argue that disclosures don’t improve ESG performance when comparable standardized data collection and reporting are still nascent.
Our members can learn more about ESG disclosures here.
If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information.
Practical Guidance for Companies, Curated for Clarity.
