It All Started with an Unexpected Email
Last year, a mid-sized manufacturing firm in Ohio that was privately owned, steady business, nothing flashy, received an email that made the leadership team pause.
It was from one of their biggest retail customers.
“To remain a preferred supplier, please share your ESG metrics in Q2. We’re looking for GHG emissions, labor practices, and governance policies. TCFD or GRI alignment preferred.”
No, the company wasn’t publicly listed. No, they’d never filed anything with the SEC. But here it was, ESG reporting knocking at their door.
Meanwhile, on the West Coast, a publicly traded consumer goods brand was in a very different place on their ESG journey. Their investor relations team had been aligning with ISSB standards, tagging emissions data in XBRL, tracking every disclosure footnote, versioning documents, and getting everything externally assured.
Two firms. Two highly distinct ESG paths. But the same direction of travel.
Whether you’re a multinational or a mid-sized private firm, ESG (Environmental, Social, and Governance) reporting can feel like untangling a web of acronyms, expectations, and ever-changing regulations. Sounds familiar?
ESG reporting has entered a new phase, one defined by rising expectations, tightening regulations, and deeper stakeholder scrutiny. But while the end goal of transparency is the same, how companies get there varies significantly depending on whether they’re publicly traded or privately held.
This blog breaks down the evolving ESG landscape for both segments, highlighting where regulations stand, how frameworks apply, what ESG reporting software is commonly used, and how both groups can prepare for what’s ahead.
Why ESG Reporting Isn’t One-Size-Fits-All
For publicly listed companies, ESG reporting is mandatory. For private ones, it’s growing more difficult to skirt.
However, driven by regulation, investors, customers, or supply chain requirements, ESG has emerged as a demonstration of how a company mitigates risk and enhances resilience. But the model and expectations aren’t uniform.
Let’s break down what ESG reporting for listed companies looks like compared to ESG reporting for private companies, and what techniques are best suited to each.
ESG Reporting for Listed Companies: Under the Spotlight
ESG reporting for listed companies isn’t just about staying compliant, it’s also about staying future-forward, competitive, and credible in an increasingly demanding landscape. Between growing investor scrutiny, shifting customer expectations, and tightening regulatory frameworks, the pressure is real and rising
Listed companies, whether on the NYSE, Nasdaq, LSE, or other exchanges are on the front line of ESG regulation. Compliance isn’t optional.
What’s Required:
- Mandatory disclosures in many jurisdictions. In the U.S., the SEC’s climate disclosure rule requires public companies to report Scope 1 and 2 emissions, and Scope 3 if material.
- Use of formal ESG reporting standards: Frameworks such as TCFD (Task Force on Climate-related Financial Disclosures), ISSB (International Sustainability Standards Board), and SASB (Sustainability Accounting Standards Board) are widely adopted.
- Multiple stakeholders, complex demands: Investor pressure is relentless. Reporting is scrutinized not just for completeness but for integrity.
ESG Reporting for Private Companies: Voluntary Today, Strategic Tomorrow
Now back to that Ohio manufacturer.
They didn’t have to report ESG to the SEC, but they still had to act. Why? Because their biggest customers were public companies. And those public companies required upstream visibility into Scope 3 emissions and social practices.
In other words, ESG expectations were cascading downstream. If you wished to remain in the supply chain, you needed to up your reporting game, even if no regulator was on your doorstep.
Where They Stand:
- No federal ESG reporting mandates (yet).
- But in California? That’s changing.
- SB 253 mandates large private enterprises ($1B+ revenue) operating in California to report GHG emissions.
- SB 261 mandates disclosure of climate-related financial risk under a TCFD-aligned framework.
Why It Still Matters:
Even outside of regulations, private firms benefit from ESG transparency:
- Access to ESG-conscious capital
- Competitive advantage in B2B procurement
- Prepares for eventual regulation
- Strengthens stakeholder relations & trust
ESG Reporting Differences at a Glance
| Feature | ESG Reporting for Listed Companies | ESG Reporting for Private Companies |
| Regulation | Mandatory (SEC, CSRD) | Voluntary (unless under state rules) |
| Disclosure Focus | Comprehensive: emissions, governance, risk | Selective: material ESG topics |
| Frameworks | ISSB, TCFD, SASB | GRI, internal metrics, B Impact |
| Stakeholder Pressure | Investors, analysts, regulators | Customers, PE firms, employees |
| Tools | Enterprise ESG platforms | Lightweight tools, Excel-based systems |
| Common Pain Points | Audit readiness, data integration | Where to start, resource constraints |
Why is ESG So Difficult?
Whether small or large, whether public or private, ESG reporting presents common challenges:
| Disconnected data: Isolated systems make it difficult to collect uniform ESG information. | Navigating complex frameworks: With so many ESG reporting frameworks, it’s simple to get lost. | Collaboration gaps: Manual processes delay reviews & approvals. | Time consuming: Manual updating & formatting hinder reporting cycles. |
Why Automation is a Game-Changer for ESG Reporting
New-generation ESG reporting software alleviates these challenges by:
- Consolidating data from diverse departments and systems.
- Linking disclosures to frameworks such as TCFD, ISSB, GRI.
- Monitoring regulatory updates across geographies.
- Providing transparent audit trails and evidence logs.
- Tracking progress through analytics.
Companies using ESG software can report up to 2x–2.8x faster than those relying on manual processes.
Source: Keyesg
Why the Right Software Makes All the Difference
Without the right ESG reporting software, you find yourself juggling emissions data, DEI metrics, governance disclosures, all scattered across finance, HR, procurement, and operations.
The right ESG reporting platform helps bridge the gap, regardless of whether you’re doing ESG reporting for listed or private companies.
What to look for in an ESG reporting software:
If You’re a Listed Company:
- Use platforms with built-in compliance workflows
- Framework mapping (e.g., ISSB, TCFD)
- Real-time dashboards with audit support
- Enterprise-grade ESG platforms with robust compliance features
- Automated XBRL tagging and version tracking
- Collaboration modules for multi-departmental coordination
If You’re a Private Company:
- Scalable ESG reporting solutions that evolve as needs grow
- Prebuilt templates for frameworks like GRI or B Impact
- Seamless integration with existing tools (Excel, QuickBooks, ERP systems)
- Educational modules and guidance to upskill internal teams
In general, look for ESG reporting solutions that offer:
- Preconfigured frameworks
- Materiality assessment tools
- Real-time dashboards
- Data traceability and export features
Final Insight: Align ESG Strategy with Who You Are
ESG reporting should be an integral part of your growth strategy, regardless of whether your organization is publicly listed or privately held. While the disclosure specifics are bound to vary based on organizational stature, its role in meeting immediate compliance mandates and fostering long-term growth is invaluable to both.
If you’re a public company, you should prioritize compliance, assurance readiness, structured data management, and how you can drive sustainable growth. And, if you’re a private company then start small, but start intentionally. Implement scalable ESG reporting tools that assist you in establishing credibility, address stakeholder pressure, and set yourself up for regulation in the future.
