Sustainability reporting – once the domain of the world’s largest corporations only – has become an almost universal practice across the American corporate landscape, according to new research by the Governance & Accountability Institute (G&A).
For the first time, the gap between large-cap and mid-cap companies has all but disappeared, with 90% of smaller firms in the Russell 1000 Index now publishing sustainability or ESG reports, up from 87% the previous year. Among large-cap companies, reporting levels are near saturation at 99%.
The findings mark a milestone in the normalisation of environmental, social and governance (ESG) disclosure. What began as a niche form of corporate transparency has now become a standard expectation of investors, regulators and the public.
Sustainability reporting has reached a tipping point. We’re now seeing mid-cap firms embrace ESG disclosure “not just to meet investor expectations, but because it’s increasingly tied to competitiveness, reputation, and access to capital,” according to the research.
SUSTAINABILITY DISCLOSURE
G&A’s 2025 Sustainability Reporting in Focus study, which analysed company reports from the 2024 publication year, found that 94% of all Russell 1000 firms – spanning nearly every major U.S. industry – now produce some form of sustainability disclosure.
The analysis also highlights the rapid adoption of standardised frameworks. The Sustainability Accounting Standards Board (SASB) remains the most widely used, cited by 82% of reporters, up from just 12% in 2019. The Task Force on Climate-Related Financial Disclosures (TCFD) framework has also gained traction, with 65% of companies now aligning with it – a sign of growing investor demand for climate-risk transparency.
The report also notes early movement toward global reporting standards, as U.S. firms begin referencing the International Financial Reporting Standards (IFRS) Sustainability Standards, European Sustainability Reporting Standards (ESRS), and the emerging Task Force on Nature-related Disclosures (TNFD). Analysts say this convergence suggests the US market is preparing for the next phase of ESG regulation and investor scrutiny, even amid political pushback against the term “ESG” in some circles.
SUSTAINABILITY REPORTING
Despite that backlash, the data tell a different story: sustainability reporting has become too entrenched to reverse. Companies understand that transparency on climate and social impact isn’t just about compliance, it’s about credibility, noted the report.
The near-universal uptake across both large- and mid-cap firms also signals a shift in corporate culture, where environmental and social metrics are increasingly viewed alongside financial performance.
For investors, the closing of the reporting gap means a broader base of comparable data and fewer excuses for opacity. For companies, it reflects a maturing sense of responsibility in a market that’s coming to see sustainability not as a sideline, but as a core measure of long-term value.
Click here to read the full report.
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