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While sustainability reporting may once have seemed like a burdensome and costly regulatory exercise rather than a profitable one, this is no longer the case today. According to the 13th edition of the Tennaxia study "CSRD and Omnibus - Where do companies stand on ESG reporting?", 83% of companies that would fall outside the scope of the CSRD still plan to publish a voluntary report. Why? Because in the face of economic, climatic, and societal changes, these compilations of non-financial data have become an essential strategic management tool, both for companies and their financiers.
What is a non-financial report?
A non-financial report (or CSR/ESG report, sustainability report) brings together key ESG indicators: business model, CSR strategy, governance, sustainability risks, greenhouse gas emissions indicators, professional equality, working conditions, local roots, etc. This document makes it possible to assess the company's overall footprint beyond its financial performance and to track its progress using structured indicators.
The Non-Financial Reporting Statement (DPEF) launched in France in 2017, transposing the 2014 European directive on the publication of non-financial information (NFRD), already required large companies to publish annual information on environmental, social, societal, human rights, anti-corruption, and governance issues. The aim was to enhance CSR transparency and provide stakeholders with a structured view of the company's non-financial impacts, with mandatory verification by a third party for the largest entities. The European CSRD (Corporate Sustainability Reporting Directive), adopted to replace and strengthen the NFRD, transforms the DPEF into a "sustainability report" from the 2024-2028 financial years onwards, depending on the size and type of company (the threshold of 1,000 employees and €450 million in turnover was finally adopted on Tuesday, December 16, 2025). It formalizes the concept of "double materiality" as the basis for reporting: reports must include information on the company's ESG impacts, risks, and opportunities on topics identified as important ("material").
What is the purpose of a non-financial report?
Beyond regulatory compliance for companies subject to the CSRD (or for those that may become subject to it in the coming years, since a threshold review clause has been included in the European Omnibus Directive amending the CSRD thresholds), the non-financial report is above all a strategic management tool. It is a company's long-term vision, a report on how it manages its impacts, risks, and opportunities related toclimate change adaptation social and societal expectations. Publishing a report means sharing this roadmap with stakeholders in a fully transparent manner. Financial institutions now incorporate ESG criteria into their decisions, making transparent companies more attractive to responsible investors and green funds. This opens the door to lower-cost financing and improves ratings with specialized agencies. Both internally and externally, ESG reporting is a tool for dialogue with stakeholders and for strengthening the company's credibility.
Dual materiality: a driver of foresight and resilience
So how can companies publish reports that are relevant, accurately reflect their challenges, and serve their interests? This is where double materiality analysis comes in. Only by identifying and assessing the significance of its impacts can a company manage them effectively and begin its transition to a sustainable model. In a context of climate change and attention to human rights, it is also a means of identifying and understanding its dependencies and anticipating risks and opportunities throughout its value chain. A company that conducts a double materiality analysis will be better prepared for economic, regulatory, and social transformations, provided, of course, that ESG issues are subject to organized governance and are integrated into the overall strategy.
The contributions and limitations of the CSRD
While the CSRD deserves credit for placing double materiality at the heart of identifying issues for greater relevance, its complexity in implementation has been a constraint for many companies: workload, data reliability, tight deadlines, etc. The simplification work launched by the Omnibus Directive will reduce this complexity, while continuing to offer a comparable and reliable European reporting standard.
This is also the intention of the VSME. This reporting standard (created like the ESRS standards of the CSRD, by EFRAG) was launched in 2024 for smaller companies (micro-enterprises/SMEs/mid-cap companies). Although reporting based on this standard will be voluntary and auditing will not be mandatory, it will enable the various European economic players to speak the same ESG language and limit requests for additional information, which are currently very time-consuming for these companies. Companies are aware of this because, according to the 13th edition of Tennaxia's annual study, today, beyond responding to potential regulatory compliance, 89% of companies use ESG information to respond to stakeholder requests.
What are the concrete benefits for businesses?
According to the analysis by the Revue Française d’Économie et de Gestion in its article "Exploring the Link Between ESG Integration and Financial Performance" " (a meta-analysis of 37 studies published in August 2025) and despite certain limitations such as the heterogeneity of definitions and methodological disparities, research confirms that ESG is not just a matter of reputation, but a strategic driver of sustainable performance. Non-financial reports offer valuable guidance to managers, investors, and decision-makers who wish to align financial and sustainability objectives.
Companies that organize the governance of their ESG issues, and publish sustainability reports to share their progress, enjoy a competitive advantage and increased credibility with investors (failure to publish a sustainability report now limits access to certain tenders and European funding), and with customers who are increasingly attentive to the values of the brands they support.
In terms of human resources, attracting (and retaining) qualified talent is becoming easier: According to a 2023 Michael Page study, 64% of candidates consider a company's CSR commitments to be an important factor when applying for a job. This trend is particularly pronounced among young graduates, who are looking for employers that align with their values and environmental concerns. This media visibility also positions the company as an innovative leader.
The reporting exercise also encourages detailed mapping of processes, revealing efficiency gains through energy optimization or savings on raw materials, for example. It stimulates innovation by promoting circular models or low-carbon products. Faced with future standards such as Corporate Sustainability Due Diligence (CSDDD), forward-thinking companies will avoid supply chain risks and be able to take advantage of European subsidies from the NextGenerationEU plan. SMEs can transform the reporting exercise into a source of data-driven decisions and operational resilience.
The fact that more and more global regulations now impose this transparency requirement is also intended to encourage companies to develop a long-term vision for their business model and align themselves with national strategies for resilience and climate change mitigation.
In short, non-financial reporting is no longer just a communication tool, but a major strategic opportunity to strengthen competitiveness, attract capital, and build long-term resilience, particularly in a context of climate risks and rapidly changing regulatory frameworks.