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The new conscious business landscape values more than just profit....
The new conscious business landscape values more than just profit. About 96% of the world’s top 250 companies report on ESG. There is a growing momentum to identify, assess, and document environmental, social, and governance commitments for stakeholders, investors, and consumers. That is why ESG metrics are no longer peripheral; they are a core component of corporate decision-making.
The trend is expected to accelerate in the coming years, with most governments taking a stance toward building an equitable future. Regulatory measures worldwide are converging, investor expectations are tightening, and ESG technology is advancing at an unprecedented speed. Here’s everything you need to know about ESG metrics, trends, and solutions.
ESG metrics enable businesses to assess their performance across environmental, social, and governance initiatives. They provide a data-driven approach to setting targets, gauging progress, and communicating the results of sustainability efforts. These actionable insights elevate the accountability, transparency, and impact of ESG strategies.
Global standards and ESG frameworks outline various measurable indicators related to sustainability and ethical issues. The environmental dimension of ESG measures a company’s impact on the planet. The social aspect focuses on a company’s relationships with employees, suppliers, customers, and the communities in which it operates. Governance metrics examine the structure and practices of a company’s leadership.
Because ESG data spans a wide range of measurable indicators, companies must set benchmarks relevant to their industry, governing bodies, and organizational maturity. This approach improves reporting standards and shifts ESG goals from a compliance necessity to a strategic business priority.
The rise of ESG is not a passing trend; it reflects a fundamental shift in how businesses are evaluated. ESG metrics offer insights into how companies manage risks that could affect their long-term success, such as regulatory changes, reputational risks, or environmental disasters. Consumers, investors, and employees are increasingly prioritizing companies that act responsibly and sustainably.
The UK, France, the EU, Singapore, Australia, India, the UAE, the US, and many other countries have already developed or are developing ESG rules.
Beginning in 2026 (for fiscal year 2025 data), California’s Climate Corporate Data Accountability Act (SB 253) requires reporting entities with annual revenue exceeding $1 billion to disclose Scope 1 and Scope 2 emissions.
Starting in 2027, reporting entities must disclose Scope 3 GHG emissions for fiscal years beginning in 2026, with limited assurance beginning in 2030. The state board will impose penalties for non-filing, late filing, and other failures to comply with SB 253.
California’s SB 261 mandates that ‘covered entities’ with annual revenues of $500 million or more publicly disclose a climate-related financial risk report every two years. Insurance companies are excluded from this requirement.
Australia’s AASB S2, Climate-related Disclosures, requires applicable entities to report on climate-related risks and opportunities that could reasonably affect an entity’s cash flows, including GHG emissions (1, 2, 3). Developed in accordance with IFRS S2, AASB S2 takes a phased approach to compliance based on an entity’s size and financial capacity.
Reporting for Group 2 companies that meet at least two of the following criteria, 200 or more employees, A$100 million or more in revenue, or A$500 million or more in assets, will apply from annual reporting periods beginning on or after 1 July 2026. The reporting period for organizations in Group 3, with at least two of the following: 100 or more employees, A$50 million or more in revenue, or A$25 million or more in assets, will begin for annual reporting periods commencing on or after 1 July 2027.
The Sustainability Standards Board of Japan (SSBJ) issued ISSB‑aligned sustainability disclosure standards in 2025, incorporating IFRS S1 and IFRS S2 into Japan’s domestic framework. Voluntary application is available from the first reporting periods after issuance, with mandatory reporting for Tokyo Stock Exchange Prime Market companies expected to begin for fiscal years ending on or after March 2027, phased in by market capitalization through the late 2020s.
As part of Singapore’s tightening ESG regulations, SGX requires all listed companies to make Scope 1 and Scope 2 climate disclosures. Scope 3 greenhouse gas emissions are mandatory only for Straits Times Index (STI) constituents from FY2026. For financial years commencing on or after 1 January 2025, all listed issuers must report the primary ISSB‑aligned climate reporting components, with STI constituents leading on the full set of climate‑related disclosures.
SEBI has deferred mandatory value chain ESG disclosures under BRSR Core to FY2026 for top listed companies, shifting Scope 3-like reporting from “comply or explain” to a fully standardized requirement.
From FY2025-26, the top 250 firms must report core metrics like GHG emissions and workforce diversity, with third-party assurance required starting FY2026-27 and expanding to the top 500 firms thereafter.
The EU’s February 2025 Omnibus Package, finalized mid-2026, reduces CSRD/ESRS reporting data points by 70% while retaining mandatory Scope 1-3 emissions, transition plans, and phased assurance through 2029. This streamlines compliance for large firms but maintains rigorous climate accountability.
ESG metrics are increasingly seen as critical indicators of a company’s long-term viability. Investors have begun recognizing that companies with strong ESG performance are likely to be better positioned to manage risks and capitalize on new opportunities. Additionally, companies with poor ESG scores may face reputational damage and other risks that could erode long-term value.
With the rise of impact investing and sustainable finance, investors are increasingly choosing companies that align with their ethical values and principles. ESG metrics offer a standardized and measurable approach to evaluating these values.
Technological advancements are making ESG measurement more scalable, transparent, and verifiable. These innovations raise the expectations of customers, investors, employees, and regulators. They expect transparent ESG data, not marketing claims. As businesses can be monitored in real time, ESG performance becomes harder to hide and easier to compare.
Technology empowers consumers and investors through ESG rating apps, product footprint labels, and AI-driven investment tools that deliver real-time sustainability insights. Companies that cannot produce credible data will lose trust and face increased scrutiny.
Regulatory pressures require transparent sustainability strategies. Manual processes and fragmented tools often hinder ESG assessment across environmental, social, and governance areas.
SAMESG® offers a comprehensive solution to automate data collection, strengthen accountability, and ensure compliance throughout the entire process. Its user-friendly interface, advanced analytics, and cross-functional collaboration tools help companies transform fragmented ESG efforts into a unified strategy.
SAMESG® enables companies to maintain a single source of truth by aggregating both quantitative and qualitative ESG data from multiple internal and external sources.
It supports flexible data ingestion methods, including manual entry, Excel uploads, automated data extraction, and more. With standardized data models and validation workflows, the platform helps reduce manual errors and ensures consistency in data capture, forming a reliable foundation for ESG reporting and analytics.
The SAMESG® solution flags anomalies early and supports seamless verification during audits. With our ESG software, organizations gain a trustworthy, integrated data foundation that enhances the quality, reliability, and efficiency of ESG disclosures, from collection to final reporting.
Information silos and fragmented efforts can impede sustainability reporting. SAMESG® enhances cross-departmental collaboration by providing shared workflows, centralized dashboards, and structured data entry forms that keep all contributors aligned.
From operations and HR to finance and procurement, each team can upload metrics and evidence directly onto the platform with role-based permissions for governance. This structure promotes collaboration across departments and ensures enterprise-wide consistency, even in complex organizations with multiple layers. The consolidated data and alert management system eliminates communication gaps.
Companies must keep pace with the tightening of ESG regulations. SAMESG® provides built-in templates and quality checks, simplifying the process of integrating evolving sustainability criteria into its reporting.
SAMRUS® allows businesses to continually adapt to the diverse requirements set forth by global sustainability standards. The solution provides real-time updates for any change in disclosure requirements. Thus, businesses stay compliant, consistent, and prepared for global ESG reporting expectations with minimal administrative burden.
SAMESG® integrates AI and ML capabilities to transform ESG metrics reporting into a more efficient and intelligent process. It empowers businesses to capture data from diverse sources, including handwritten documents, PDFs, and Excel, thereby reducing manual data entry and associated errors.
Organizations can generate performance summaries for various ESG metrics for real-time insights. Leveraging AI enables businesses to flag discrepancies and sustainability issues without manually parsing through a huge volume of information. AI can adapt to usage patterns over time, providing data-driven insights that streamline ESG reporting.
SAMESG® simplifies growth by adapting to increasing data volumes, geographies, and regulatory demands. The modular architecture and scalable tools support the consolidation of multi-entity and multi-region data. This makes it suitable for enterprises with global operations or multiple subsidiaries.
Role-based access and alert management systems enable businesses to scale sustainability efforts without compromising accountability. They can set targets and monitor activities to assess and manage regulatory risks, even as a company expands.
ESG metrics provide a powerful lens for evaluating a company’s performance and its impact on society and the environment. They are moving beyond perception-driven sustainability claims and becoming essential to overall business performance.
SAMESG® creates a more cohesive ESG ecosystem, enabling faster collaboration, clearer accountability, and more accurate, enterprise-wide reporting. The one-stop ESG solution centralizes data collection, supports complex organization structures, and aligns disclosures with global standards. This makes ESG reporting simpler, more transparent, and more scalable.
By automating data capture, consolidating inputs across departments and geographies, and enabling structured ESG disclosures, SAMESG® helps companies turn sustainability commitments into actionable, reportable outcomes.
Want to know how SAMESG® works?
SAMESG® streamlines ESG reporting—automating data collection, ensuring compliance, and delivering audit-ready reports in one powerful platform.
About the author
Director – Projects & Value Chain at SAM Corporate LLC
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Rajagopal Kannan is the Director of Projects & Value Chain at SAM Corporate LLC, leading ESG, risk management, and sustainability initiatives. With over 20 years of experience, including a decade in banking and financial risk, he specializes in credit structuring, Basel II & III, ISO 31000, COSO ERM, internal audit, and regulatory compliance under CBUAE, DFSA, ADGM, and SCA.
His current focus lies in ESG integration, climate and sustainability risk management, and value chain sustainability. A GRI-certified Sustainability Professional and GARP-certified SCR holder, he also holds multiple global credentials including PRM®, GRCP, GRCA, CRCMP, CBiiiPro, CSM, and CISI Level 3.
