Is an ESG report and a non-financial report the same thing?

ESG report and non-financial report are not the same, although they often overlap. In the context of the obligations imposed by the CSRD (Corporate Sustainability Reporting Directive), the ESG report has become more detailed and formal. Under the directive, large companies must report on their environmental, social responsibility and corporate governance activities. The ESG report, in this view, includes specific indicators, targets and strategies that a company uses to meet sustainability requirements.

A non-financial report, on the other hand, is a broader concept that can cover a variety of information about a company’s operations, including its environmental, social or ethical impact, but not necessarily in as much detail as required by the CSRD. Companies that opt for voluntary non-financial reporting can include various aspects of their operations in their documents, and are not limited to ESG indicators.