ESG strategies show financial benefits amid declining reporting rates

ESG (Environmental, Social, and Governance) strategies are showing significant financial and operational benefits, despite a decline in reporting frequency among some companies. Research from NYU Stern indicates a strong correlation between ESG performance and financial results, with 58% of analyzed cases showing positive correlations. Between 2013 and 2020, companies with high ESG scores achieved shareholder returns 2.6 times higher than market averages.

Operational efficiencies are also notable. For example, Walmart saved $200 million annually through LED retrofits, and UPS saved 10 million gallons of fuel per year using its ORION system. These practices serve as early warning systems for managing risks such as supply chain disruptions and greenwashing allegations.

However, a report by Grant Thornton reveals a sharp decline in ESG reporting on the Warsaw Stock Exchange (GPW). For 2025, only 102 out of 407 listed companies (25%) prepared reports, down from 154 companies (38%) the previous year. This decrease is attributed to European Union regulatory easing, including the Omnibus package and the ‘Stop the Clock’ mechanism, which narrowed the scope of required reporting and shifted deadlines. Experts suggest this trend indicates that many firms still view ESG reporting primarily as a legal obligation rather than a strategic management tool.