15 October 2025
ESG reporting. Three little letters that can either make you look like the A* student of corporate responsibility or like you’ve just copied your homework from the person sitting next to you and hoped no one would notice.
The likes of today’s investors and customers are all paying attention to how you take on your responsibilities.
Plus, with the EU’s Corporate Sustainability Reporting Directive and the UK’s growing disclosure rules hanging over your heads, getting it wrong can be costly (and embarrassing).
So, if you’re going to do it, you may as well do it properly.
Here are the seven deadly sins of ESG reporting and, more importantly, how to avoid them.
The cardinal sin. Claiming you’re “saving the planet” because you changed the office lightbulbs is an outrageous statement.
Just ask DWS, the asset manager fined millions in 2023 for overstating its green credentials. Even HSBC and Ryanair have been caught out by the ASA for making dodgy green claims.
Regulators are watching, and customers aren’t daft, so don’t overstate your initiatives.
How to avoid greenwashing: Be specific. If you’re offsetting your carbon emissions, explain how. Better yet, focus on reducing emissions first and be transparent about your progress.
Highlighting the one recycling initiative you launched while ignoring your carbon-heavy supply chain is like bragging about eating a salad after eating pizza all week.
How to avoid cherry-picking: Give a balanced picture. Yes, share the wins, but also be honest about what’s still on your to-do list. No one is asking for perfection, but putting all your cards on the table shows that you’re still committed to putting in the work.
“We care deeply about the environment.” We’ve all heard that one before.
Sure, it’s a lovely sentiment, but it doesn’t really mean anything at face value. Vague statements are about as useful as a chocolate teapot.
How to avoid being vague: Swap the corporate gibberish for measurable commitments. For example, try something like “We will cut Scope 1 and 2 emissions by 25 per cent by 2030, using 2025 as our baseline.”
Of course, don’t make promises you’re not prepared to keep. Otherwise, your ESG report ends up like that gym membership you purchased in January as part of your New Year’s Resolution, only to be forgotten by the time you reach February.
Big promises with no numbers behind them are as empty as England’s World Cup trophy cabinet (sorry, couldn’t resist).
Poor data is one of the fastest ways to lose trust. If it isn’t measurable, it isn’t meaningful!
How to avoid data drought: Invest in systems and controls for ESG data, treating it with the same level of care as your financial data.
Build in proper controls, get independent assurance where possible and remember that “rough estimates” won’t get passed the regulators.
Getting fixated on carbon while ignoring people and governance is like obsessing over your steps on a smart watch while ignoring your blood pressure and diet, you’re missing the bigger picture.
Many firms get stuck on the “E” in ESG because it’s visible, it’s measurable, and frankly, it makes for a nice headline.
How to avoid it: Give equal attention to the social and governance side of your practice. Think about diversity reporting, gender pay gaps, supplier audits, modern slavery statements and board accountability.
How diverse is your partnership? Are trainees surviving 70-hour weeks? Do your client acceptance checks actually work? How are you reducing burnout? When did you last update your company policies?
If these aren’t questions your firm aren’t asking, they need to be.
Copy-paste job from last year’s report? Big mistake!
Clients and regulators are eagle-eyed and will spot it faster than it takes to press “Ctrl + C”. It’s a very quick way to lose credibility.
How to avoid boilerplate reporting: Refresh your content. Did you improve recycling rates at your offices? Did you put together an ESG committee? Each report should reflect all of your progress and the challenges you faced, even if you think it’s minor.
Treating ESG reporting as another box you have to tick for compliance rather than a strategic tool is the ultimate missed opportunity that we see time and time again.
How to avoid it: Get leadership buy-in. Integrate ESG KPIs into your strategy and make them a part of your everyday decision-making. If it matters to the board, it will matter to the business.
Our ESG Essentials course gives legal and accountancy professionals a clear, practical understanding of
ESG principles and what they mean in day-to-day work.
You’ll quickly learn how to identify material ESG risks, integrate social and governance considerations into client advice and ensure your firm’s reporting is regulator ready.
Book a demo today and let’s get your ESG strategy back on track.