We have arrived in a new era of sustainability reporting – one that demands integration and accountability. As regulatory requirements continue to take hold, sustainability is being woven into the fabric of how companies operate, make decisions and engage with their stakeholders. What was once voluntary and sometimes peripheral is now core and consequential. Introduction Welcome message from Stephanie de Heer and Louise Ayling The shift towards mandatory reporting brings both pressure and potential. Compliance with frameworks like the CSRD and the ISSB is demanding, but it also presents extraordinary opportunities to embed sustainability more deeply across strategy, finance, risk management, governance, operations and communications. The challenge lies in going beyond ticking the box and using reporting to drive real-world results. This journey isn’t easy. Different jurisdictions are adopting different frameworks, timelines and expectations. For companies in the early stages, the sheer scale of disclosure requirements can feel overwhelming. For others, the transition from voluntary to mandatory reporting requires significant system upgrades, cultural change and cross-functional collaboration. And for all, there’s the ongoing need to communicate impact with clarity, relevance and integrity to diverse stakeholder groups. That’s why integration matters. Reporting that sits solely with the sustainability or finance team, or serves only external requirements, will fall short. What’s needed is shared commitment across the business to understand the organization’s material issues and impacts, align on priorities, act with ambition and tell the story with honesty and purpose. This year’s Reporting Matters analysis shows many companies are rising to meet the challenge. We see more robust internal governance, more mature approaches to materiality and greater alignment between sustainability goals and business outcomes. Over 80% of companies disclosing their materiality process now use a double materiality lens – a sign that businesses are starting to think more systemically about their risks, opportunities, impacts and dependencies. Stronger governance models are supporting better internal alignme nt – and 79% of companies are making visible efforts to connect sustainability goals to their core strategies. Encouragingly, more companies are also integrating financial and non-financial data to inform better decisions and improve accountability. This is reflected in the rise of combined reports – from 14% in 2024 to 25% in 2025. As the business landscape continues to evolve, so too will reporting. Disclosure alone is not enough; we expect to see further integration into business processes and decision- making. We also anticipate a shift toward more engaging, multi-channel communication that complements the rigor of regulatory disclosures. Regulation doesn’t have to stifle storytelling. In fact, it can enhance it. Stakeholders want to see outcomes. They want transparency on both progress and setbacks. We hope to see more companies using their reports to both inform and inspire – showing how sustainable business is lever for innovation, resilience and growth. This moment calls for commitment, collaboration and clarity. It’s a moment to move from disclosure to action, from isolated reporting to integrated thinking, and from compliance to meaningful impact. Reporting Matters exists to support and encourage this evolution. By elevating good practices and highlighting opportunities for improvement, we aim to help companies navigate complexity and make reporting a catalyst for transformation. Ultimately, this transformation is about people – those with the courage to act in the face of uncertainty. Reporting can support the change by providing clarity, accountability and a shared sense of direction. The tools are here – it’s now up to companies to use them. Louise Ayling Sustainability Director Radley Yeldar Stephanie de Heer Chief Member and Marketing Officer WBCSD