European sustainability regulation is entering a clear slowdown in 2025.
The implementation of the CSRD Directive has been postponed, the finalisation of the ESRS standards is expected only next year, and several countries are adjusting their national timelines. At first glance, it may seem that the pressure has eased and companies can afford to wait.
Yet precisely this period of lower legislative intensity is ideal for thorough preparation. Those who use this time to develop a reporting framework, verify their data, and strengthen internal coordination will be able to report with confidence and efficiency in the coming years – without time pressure and with a reduced risk of errors.
A Shift in Mindset: From Compliance to Value
After two years of intense regulatory communication, the market is moving from the attitude of “we have to report” to the question “how can we make it meaningful?”
Companies that want their ESG reporting to create long-term value are now focusing mainly on:
Connecting ESG topics with business strategy
Ensuring data availability and quality across the organisation
Calibrating the scope of reporting to the size and nature of the company
Interpreting results effectively for key stakeholders – investors, clients and employees
All these areas require time, internal discussion and clear methodological guidance – and are best addressed outside the stress of regulatory deadlines.
The Strategic Phase: Framework, Data, Processes
Effective reporting is not only about filling in ESRS tables.
Experience from early adopters shows that successful companies start by building a reporting framework that combines methodological rigour with business logic.
A typical process includes:
Identifying relevant areas under ESRS and outcomes of the double materiality analysis.
Designing a logical structure for the report that reflects the business model, impacts and risks.
Defining quantitative and qualitative indicators that truly reflect the company’s reality.
Allocating responsibilities and establishing data collection processes.
The outcome is not yet the report itself, but an internal framework defining what will be measured, who provides the data, and how it will be evaluated.
This step – often called a reporting blueprint or readiness assessment – is usually the key difference between formal and functional reporting.
Data Readiness as a True Test of Maturity
Most companies already have at least part of their ESG data available – the question is whether it is complete, reliable and consistent.
Without properly mapped data, it is impossible to ensure quality outputs or credible audits.
Practical experience shows that:
Data are often scattered across departments (HR, finance, operations, procurement, H&S).
Central records or unified formats are missing.
Reliable inputs for Scope 3 emissions or social indicators are often lacking.
That is why it makes sense to carry out an ESRS Data Readiness Check – a systematic overview of what information exists, what needs to be calculated, standardised or verified.
A good data overview saves months of work, helps set realistic ambitions and reduces the risk of non-compliance during later audits.
Carbon Footprint as a Management Tool, Not Just a Number
One of the first quantifiable ESG indicators is the carbon footprint.
Its calculation under the GHG Protocol (Scope 1–3) has become a standard part of reporting, yet in most companies it still functions as a stand-alone project rather than an integrated management tool.
Linking the carbon footprint calculation with other ESG data brings several advantages:
It helps prioritise investments in areas with the greatest impact.
It provides a foundation for decarbonisation targets and emission-reduction plans.
It enables the quantification of progress over time.
The key is to ensure that the calculation is not a one-off exercise, but part of a broader ESG data system and decision-making process.
Summary: Time for Methodical Preparation
The current slowdown in legislation is no reason for inaction.
On the contrary – it is an opportunity for companies to focus on internal processes, methodology and team collaboration.
Reporting is not becoming simpler, only clearer for those who have prepared.
Companies that use this time to establish their framework, conduct a data inventory and connect key indicators with business strategy will enter 2026 with a strong head start – and with reporting that makes sense not only for regulators, but for their organisation as a whole.
That is precisely why Flagship has developed three targeted packages to help companies and investors take the right steps now:
ESRS Data Readiness Check– assessment of data quality and completeness, identification of gaps and recommendations for 2026 reporting.
Reporting 2026 Preparation– a strategic framework, indicators, roles and timeline that bring structure and confidence to the process.
Carbon Footprint Under Control– accurate calculation, interpretation and recommendations for reducing emissions effectively and cost-efficiently.
Each package represents a practical step that provides clarity, assurance and an advantage at a time when ESG is becoming not only a regulatory obligation but a strategic driver of long-term value.