ESG Reporting: 3 Sample ESG Reports from Sustainability Leaders

With ESG reporting becoming mandatory, sustainability teams need model reports to emulate. Here are 3 companies leading the way.

Table of Contents

• What is an ESG Report?

• Microsoft ESG Report

• Unilever ESG Report

• Nike ESG Report

• ESG Reporting FAQ

What is an ESG Report?

An ESG report is a document that communicates all of the ESG efforts and accomplishments of an organization within a specific time period. ESG reports often reflect an organization's efforts within one year. Depending on the organization, they may report on a specific fiscal or calendar year.

Depending on the organization, ESG reports contain the methodology for how data was captured, what data the organization is reporting on, and how funds will be allocated for the future.

There is no official way to correctly compile an ESG report. Due to various reporting methodologies and a lack of official standardization, ESG reports vary depending on the organization.

We’ve compiled three sample ESG reports from industry leaders so you can see what an ESG report looks like.

Microsoft ESG Report

Microsoft’s 2022 ESG report is a masterful example of how an organization can align sustainability goals with business strategy using data-rich storytelling. Microsoft clearly lays out the goals of their unique sustainability strategy and the specific areas they’re targeting, such as carbon emissions, water, waste, and other ecosystems.

Standout Features:

• The report introduction clearly identifies Microsoft's major focus areas for the year and verifies results with numbers, methodology, and data.
• Details extensive emissions reduction programs by emission type, such as Scopes 1, 2, and 3, but also through carbon, water, and waste
• Organizes different initiatives based on impact (corporation, customer, global)
• Provides future goals and the progress the organization is making to achieve those goals.

Key Takeaway: Microsoft’s sustainability initiatives are deeply rooted in operations and the organization's overall purpose. Their storytelling relies heavily on the data they’ve collected, and the goals they set for the future.

Unilever ESG Report

Unilever’s portfolio of brands covers a wide range of products, from food to health products. The company’s approach to ESG reporting is to include ESG-specific information in its general annual report.

Standout Features:

• The ESG section presents information in a way that resembles an academic study, making it seem more objective.
• Because the ESG information is outlined in the same report as a general annual report, you can clearly connect how ESG initiatives affect organizational goals.
• The report outlines risks and other major considerations. This information makes it clear to investors what major challenges the organization might foresee and how it plans to mitigate them if they occur.
• Governance strategies are clearly outlined, and board member’s backgrounds are displayed.

Key Takeaway: Combining your ESG report into your annual report is an acceptable way to display information and could create a more informed picture than just an ESG report.

Nike ESG Report

Nike’s ESG report heavily focuses on the social aspect of ESG, highlighting the work the organization is doing to ensure women and girls have a place in athletics. While the report does detail important environmental details, it is a good example of how different organizations value different subsets of the ESG framework.

Standout Features:

• The report opens with a clear understanding of the organization's goals and the 2025 targets. As the reader continues through the report, they can see how strategies lead back to target goals.
• Nike clearly dictates organizational value from the beginning. In that order, Nike divides the report into three sections: People, Planet, and Play. This order shows the order of importance in how their organization values different parts of the ESG framework.
• The data is laid out in a simple and readable manner, clearly showing changes over a longer period of time.
• The report covers information in a more editorial or storytelling manner than in a data-centric manner. While data is used and shared to convey key growth changes, writing, and storytelling do more of the heavy lifting in this report.

Key Takeaway: Your organization can choose how to display information and tell the story your data creates. Nike values the social aspects of its business over the environment, and it’s okay if your report reflects your individual values in that way.

Truly excellent ESG reports make sustainability integral to strategy, operations, and culture. Purpose and progress shine through data and narrative.

ESG Reporting FAQ

Is ESG reporting mandatory in the US?

Currently, there is no federal mandate for ESG reporting in the United States. However, some organizations are required to report on ESG performance based on state laws and regulations. For example, California Senate Bill 253 requires any organization that does business in California and has over $1 billion in revenue to disclose climate-related information.

What are the ESG reporting requirements?

There are currently no requirements for reporting ESG metrics. This means that an organization can choose how reports are displayed, resulting in a wide variety of reports.

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