Sustainability topics 2024: What companies really report on
Which sustainability topics will dominate the first CSRD reports in 2024 - and which will be left out? We provide insights and trends.
- Almost every first CSRD report covers climate change (E1), own workforce (S1), and governance (G1). These three form the de facto ESG core of 2024.
- Biodiversity, affected communities, and supply chain topics remain significantly underreported, despite being material for many business models.
- Data availability and phase-in rules explain much of the imbalance, but do not eliminate the strategic risk of omitting relevant topics.
- Companies that go beyond the minimum today position themselves as more credible and forward-looking to investors and stakeholders.
- The ESRS data points template can help you map which disclosures apply to your material topics and where gaps remain.
With the entry into force of the Corporate Sustainability Reporting Directive (CSRD), a new era in corporate reporting has begun. From the 2024 financial year, numerous companies in the EU must disclose in detail how they fulfill their environmental and social responsibilities, following clearly defined standards: the European Sustainability Reporting Standards (ESRS). But what is actually reported? Which sustainability topics are companies focusing on in 2024? And which aspects are still under the radar?
Part 2 of the Inside CSRD series: Sustainability topics 2024
The first published CSRD reports 2024 provide exciting insights. Based on more than 200 analyzed reports and studies by EY, Deloitte & DRSC, PwC (webcast), Horváth, KPMG, KEY ESG, European Issuers and others, clear patterns emerge:
- Some sustainability topics in 2024, such as climate change or working conditions, dominate almost every report.
- Others, such as biodiversity, supply chain risks or consumer concerns, are dealt with much less frequently.
In this article, we take a closer look at this shift in priorities: what does it say about the current implementation of the CSRD and what does it mean for companies starting out now?
Those who only focus on climate protection underestimate the diversity of CSRD.
1. Climate change, workforce and governance: the ESG core of 2024
The analysis of the first CSRD reports 2024 shows a clear picture. Three sustainability topics appear at the top of the list for almost all companies, regardless of sector, size or country. They form the de facto standard of the new reporting obligation.
E1: Climate change, the universal topic
Almost 100% of the companies analyzed classify climate change (ESRS E1) as material. Reports cover:
- Scope 1-3 greenhouse gas emissions
- Climate risks and opportunities
- Net zero targets (around 75% have formulated one)
- Transition plans for decarbonization
The data situation is already established in many companies. ESG ratings and investors treat E1 as a must. The climate report is increasingly becoming a strategic indicator.
S1: Own labor force, social standard with a database
ESRS S1 is also one of the most reported sustainability topics in 2024. Almost all companies cover:
- Diversity and equality
- Working conditions and occupational safety
- Further training, fluctuation and retention
Most of the data is available internally, and social aspects are increasingly under scrutiny from the public, supervisory boards and talent.
G1: Corporate behavior, governance is part of it
G1 (Business Conduct) is also reported almost universally:
- Anti-corruption and bribery
- Whistleblowing systems
- Values, ethics and codes of conduct
Governance is not new, but it is now an explicitly integrated part of ESG disclosure under the CSRD.
Why these three topics dominate
These topics form the clear ESG core of 2024's sustainability topics. There are understandable reasons for this:
- Clear regulation: Detailed ESRS requirements exist for all three topics. Climate reporting (E1) is already well anchored in the EU Taxonomy, GHG Protocol and TCFD.
- Stakeholder relevance: Investors, customers, employees and NGOs primarily demand transparency on climate and social issues.
- Data availability: For S1 and G1, many organizations already hold personnel data and governance reports collected over many years.
This focus on established topics is an obvious starting point, especially in the first reporting year. Still, it is already clear: the CSRD requires more than just the minimum ESG standard. It requires a holistic view of all significant effects, even where companies have less experience, less data or more complex interrelationships.
2. Biodiversity, consumers, supply chains: the neglected sustainability topics of 2024
While most first CSRD reports focus on climate, employees and governance, other sustainability topics often remain in the background in 2024, even though they would be relevant for many business models.
Biodiversity (E4): Complex and often ignored
Biodiversity is one of the greatest levers and risks for long-term sustainability. Yet according to studies by Horváth and Deloitte, only around 30-50% of companies classify it as material.
Common reasons:
- Unclear effects on the company's own business model
- Lack of KPIs and measurement systems
- The phase-in rule, which allows voluntary omission in the first year
Biodiversity does not only affect agriculture, energy or chemicals. Industries with global supply chains or significant land consumption are also indirectly affected. Many companies still underestimate their role in ecosystems.
S3 and S4: Communities and consumers barely visible
Affected communities (S3) and consumer concerns (S4) barely feature in many reports. B2B companies in particular often see no direct relevance, although infrastructure projects, product responsibility or social impacts would apply in many cases.
What is typically missing:
- Systematic evaluation of social effects
- Dialog-based stakeholder involvement
- Standardized indicators such as consumer satisfaction, access to services and complaint mechanisms
Supply chains (S2): Recognized as relevant but rarely documented
The supply chain is often identified as a material issue, yet actual reporting is frequently incomplete. The reason is usually limited data availability, especially for indirect suppliers at lower tiers. Many companies are also still setting up their supply chain reporting in technical and organizational terms.
The result: obligation recognized, implementation postponed. Phase-in facilitations from the ESRS support this pattern.
The ESRS allow delayed disclosure for certain topics, including biodiversity and some social topics. This gives companies breathing room, but not an excuse to skip the materiality assessment entirely. The sooner you identify which topics are relevant, the better prepared you are when phase-in periods end.
3. Why this imbalance arises and what it causes
The analysis of the first CSRD reports shows that companies set priorities. But why do certain sustainability topics reliably end up in the report while others are systematically omitted?
Causes: What speaks against broader topic coverage
| Factor | What it means in practice |
|---|---|
| Data availability | Climate data, key personnel figures and governance documents are generally available. Biodiversity, S3/S4 and supply chains often lack reliable, standardized information. |
| Complexity | Many topics are difficult to operationalize. Measuring ecosystem impacts or quantifying social effects along global supply chains requires new methods. |
| Lack of established KPIs | No widely accepted key figures exist for consistent comparison or structured review. |
| Phase-in rules | The ESRS allow delayed entry for certain disclosures, which many companies legitimately use. |
| Strategic restraint | Some companies wait to see what stakeholders actually demand and initially focus on solid basic reporting. |
Effect: Why less is not always more
A narrow topic focus has direct consequences:
- Stakeholder perception: Topics not reported are often perceived as "not relevant," even when they actually are.
- Comparability: If companies classify very different issues as material, benchmarking becomes harder for investors and ESG rating agencies.
- Reputational risk: Omitting a relevant topic (e.g. biodiversity at a chemical company) can quickly be read as a deliberate gap.
- Missed differentiation: Those who address complex or "hidden" sustainability issues early stand out positively against companies that limit themselves to the minimum.
Reporting is positioning
The sustainability topics of 2024 reflect regulatory obligations and strategic decisions. What companies report, and what they do not, shapes their market perception. The CSRD opens up space for holistic transparency. Companies that actively shape this space gain trust. Those who use it defensively risk falling behind.
The ESRS data points template helps you identify which disclosures apply to your material topics and spot the gaps before your auditor does.
Conclusion: Reporting only on climate keeps you one-dimensional
The evaluation of the first CSRD reports shows that companies set clear topic priorities, and often rightly so. Climate change, working conditions and corporate governance form a reliable ESG core that many organizations focus on first. These topics are well defined, strategically relevant and operationally measurable.
But sustainability does not end with climate. The CSRD requires holistic reporting on all material impacts. This includes complex, indirect or less tangible topics such as biodiversity, social responsibility along the supply chain and consumer protection.
Many of these sustainability topics are still being addressed cautiously or not at all in 2024. This is understandable from a data and resource perspective. It remains a missed opportunity. Those who go beyond the mandatory program today and make difficult topics visible position themselves as credible, forward-looking and strategically mature.
The CSRD is a reflection of overall sustainability performance, not climate reporting with an appendix. Companies that take this seriously report more comprehensively and more convincingly.
Sources
- Sustainability Reporting Navigator
- EY
- Deloitte & DRSC
- PwC (Webcast)
- Horváth
- KPMG
- KEY ESG
- European Issuers
Frequently asked questions about sustainability topics in CSRD reporting
Which sustainability topics do almost all companies report on?
Climate change (E1), own workforce (S1) and corporate behavior (G1) appear in almost every first CSRD report. These three topics have clear regulatory requirements, established data infrastructure and high stakeholder relevance, making them the natural starting point for most companies.
Why is biodiversity so rarely reported in 2024?
Biodiversity is genuinely harder to measure than carbon emissions or headcount. Companies often lack KPIs, struggle to link their business activities to ecosystem impacts, and many used the ESRS phase-in rule to defer this disclosure in year one. That said, the topic is growing in importance and will face greater scrutiny in future reporting cycles.
Does skipping supply chain reporting (S2) carry risks?
Yes. Even if data is currently limited, omitting S2 entirely signals to investors and auditors that the topic has not been assessed. The better approach is to document the current data gaps and show a plan for closing them. Partial disclosure with transparent caveats is more credible than silence.
How do I identify which sustainability topics are material for my company?
The double materiality assessment is the starting point. It asks you to look at both the impact your company has on people and the environment, and the financial risks and opportunities that sustainability issues create for your business. Tools like Materiality Master can structure this process and reduce the time required.
