The landscape of Environmental, Social and Governance (ESG) reporting is shifting in 2025 as regulatory mandates grow more stringent globally, even while political pushback intensifies in parts of the world, and most notably the US.

The regulatory trend is clear. Governments and oversight bodies are moving to standardise and enforce ESG disclosures, requiring firms to document how their operations affect environmental and social outcomes. However, political resistance in the US has cast doubt on the long-term trajectory of such efforts.

Asia follows global push for mandatory disclosures

In Europe, the Corporate Sustainability Reporting Directive (CSRD) is expanding reporting obligations to a far wider group of companies. The directive reinforces the concept of “double materiality”, requiring firms to assess both how sustainability issues impact business performance and how corporate activity affects people and the planet.

Singapore is also advancing ESG rules. From 2025, all listed companies will be subject to enhanced climate reporting requirements, aligned with emerging international standards. The shift follows moves by the International Sustainability Standards Board to consolidate global ESG reporting frameworks.

Political pressure slows ESG in the US

The regulatory drives in Asia and Europe starkly contrasts with the more combative political environment emerging from the US. The return to the White House of President Donald Trump has brought renewed scrutiny of ESG frameworks, with many US lawmakers seeking to roll back requirements. Several US states are also moving to curtail the use of ESG factors in public sector investment strategies.

This divergence is complicating compliance efforts for global companies. Some firms are caught between regulatory obligations in Europe and Asia and the political sensitivities in key US markets.

Investor, consumer pressure persists

Despite political volatility, market expectations on ESG remain high. Institutional investors and major consumer groups continue to demand clear and credible ESG disclosures. Many firms view transparent reporting not only as a regulatory necessity but also as a strategic asset.

Some companies are continuing to push forward. Filtrona, a global leader in the design, testing and manufacture of speciality filter solutions, announced a 50% reduction in Scope 1 and 2 greenhouse gas emissions in its 2024 sustainability report.

The company also achieved zero waste to landfill across all sites and raised its renewable energy use to 35%. Social programmes focused on education, healthcare and vocational training reached more than 2,000 people.

The Singapore-headquartered firm also installed solar roof panels at its manufacturing facilities in Indonesia, India and the United Arab Emirates, complementing the photovoltaic infrastructure at its plant in Thailand.

Filtrona CEO Robert Pye said, “We are excited to share our second Sustainability Report and the incredible progress we have made on our ESG journey.”

Swiss-based MET Group published its first sustainability report in 2024, aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. 

The company reported 403 MW in operating renewable energy capacity and a further 646 MW in development. MET Group has steered away from coal investments and remains focused on gas, LNG and power supply.

Ambiguous outlook for 2025

The direction of ESG reporting in 2025 remains uneven. While regulatory frameworks continue to mature, political polarisation is testing corporate ESG strategies. Firms operating across multiple jurisdictions are adapting to an increasingly fragmented policy environment.

Nevertheless, ESG reporting remains central to corporate governance and risk management. Regulations may be in flux, but firms that fall behind on ESG risk losing relevance in the eyes of markets and stakeholders alike.