The 7-Step ESG Reporting Process: Where Science Meets Art
Sustainability & ESG, Guides / January 13, 2026
By Paul Gassett, Chief Executive Officer
This article was updated in January 2026.
Effective ESG reporting requires a deliberate blend of analytical rigor and strategic communication. High-quality sustainability reports strengthen stakeholder confidence, reduce information asymmetry, and support more effective engagement with investors and regulators.
It’s a process in which the science — frameworks, data, and assurance — must integrate seamlessly with the art — narrative, structure, and visual experience.
This guide draws on OBATA’s established reporting methodology, which has been honed over many years of experience in sustainability, impact, and corporate reporting. First made available to the public over five years ago, it reflects how our process has evolved alongside shifting standards and stakeholder expectations.
It also addresses current requirements for the 2025–2026 reporting cycle and provides executives with a framework they can rely on across multiple reporting periods. Regulatory requirements continue to evolve, but the fundamentals of credible sustainability reporting remain consistent.
ESG Reporting Process Overview
Jump to a phase:
Phase 1: The Science
Phase 2: The Art
4. Narrative Development
5. Visual Direction & Experience
6. Report Preparation & Publication
7. Communications & Amplification
Key Definitions
- International Sustainability Standards Board (ISSB): Global baseline standards for investor-focused sustainability and climate disclosures (IFRS S1 & S2)
- CSRD/ESRS: EU sustainability reporting requirements applying to a reduced set of organizations following recent scope and timeline revisions. Requirements include double materiality, structured disclosures, digital tagging, and phased assurance.
- SB 253: California emissions disclosure law requiring Scope 1, 2, and 3 reporting for certain large companies, with implementation timelines subject to regulatory development.
- SB 261: California climate-risk disclosure law aligned with TCFD and ISSB frameworks, currently subject to legal and enforcement review.
- Double Materiality: Evaluating what is material to both stakeholders and the business.
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The 7-Step ESG Report Process
Phase 1: The Science
The analytical foundation of credible sustainability reporting. A strong scientific foundation reduces downstream rework and strengthens assurance readiness.
STEP 1: Defining Your ESG Strategy
ESG strategy development begins with understanding your current position, expectations, and gaps. This diagnostic step consistently shapes the effectiveness of downstream reporting decisions.
Stakeholder engagement & double materiality
- Identify key internal and external stakeholders
- Conduct double materiality assessments
- Validate priority topics with leadership
Evaluate ESG ratings evaluation (MSCI, Sustainalytics, S&P)
- Review current ratings and sub-scores
- Identify disclosure-driven weaknesses
- Document methodologies influencing your scores
Peer benchmarking
- Select 5–7 comparable peers
- Compare disclosure depth and topic coverage
- Identify sector norms and emerging expectations
Review prior-year report
- Identify missing topics or incomplete metrics
- Resolve narrative inconsistencies
- Confirm delivery on past commitments
Set goals and reporting priorities
- Establish KPIs
- Assign governance and ownership
- Confirm reporting scope and themes
Consider external support for materiality, benchmarking, and ESG strategy development through our sustainability consulting services.
Useful Tips
- Treat Step 1 as your ESG reality check
- Review ratings early to uncover improvement opportunities
- Benchmark peers to contextualize ambitions
- Avoid repeating prior-year gaps through structured review
Step 2: Select And Align Disclosure Frameworks
This step determines the structure, scope, and technical foundation of your sustainability report. Early alignment across Sustainability, Finance, Legal, and Communications reduces rework and improves assurance readiness.
Rather than chasing every emerging rule, organizations should prioritize frameworks that align with their stakeholders, geographic footprint, and risk profile.
Core Frameworks Influencing Sustainability Reporting
ISSB (IFRS S1 & S2)
- Serves as the emerging global baseline for investor-focused sustainability and climate disclosures
- Integrates TCFD-aligned climate risk and opportunity reporting
- Increasingly used as a reference point even where reporting remains voluntary
CSRD / ESRS (European Union)
- Mandatory only for organizations meeting revised EU thresholds following the 2025 Omnibus I.
- Scope significantly reduced; reporting timelines delayed for most companies
- Continues to shape expectations around double materiality, data rigor, digital tagging, and assurance
GRI
- Remains the most widely used framework for impact-oriented and stakeholder-focused reporting
- Frequently used alongside ISSB to provide broader sustainability context
California SB 253 & SB 261
- SB 253: Emissions disclosure requirements remain in effect for companies over $1B in revenue, though final regulations and timelines have been delayed
- SB 261: Climate-risk disclosure currently under legal injunction; enforcement timing uncertain
- Despite uncertainty, these laws continue to influence emissions measurement, governance, and reporting design
For a deeper breakdown: California SB 253 & SB 261: Are You Ready?
Supporting voluntary frameworks
- CDP
- UN Sustainable Development Goals
Other Considerations
- ESG ratings and rankings (MSCI, Sustainalytics, S&P)
Bottom line:
Framework selection should support a reporting process that is credible, adaptable, and resilient and not optimized for a single regulation that may change.
Useful Tips
- Select frameworks based on applicability, not headlines
- Map ISSB, ESRS, and GRI requirements early to reduce duplication
- Train internal teams early on evolving sustainability and climate disclosure standards.
- Design disclosures to remain flexible as regulatory requirements evolve
Step 3: Gather and Validate ESG Data
Data drives credibility. Expectations for accuracy, traceability, and assurance continue to rise. Clear ownership and documentation remain the strongest indicators of a smooth reporting cycle.
Key Components
- Assign data owners and define workflows.
- Collect environmental, social, and governance datasets.
- Document methodologies, assumptions, and boundaries.
- Validate data internally with SMEs, Finance, and Legal.
- Map data to chosen frameworks.
Current Data Expectations
- Scope 3 value-chain estimation and refinement.
- Audit-ready documentation and traceability.
- Alignment with ISSB measurement criteria.
- AI-assisted consolidation with mandatory human verification.
Common Scope 3 gaps:
- Purchased goods and services
- Upstream transportation and distribution
- Downstream use-phase emissions
Assurance note:
CSRD and California SB 253 require limited assurance initially, with reasonable assurance expected to phase in.
Useful Tips
- Begin Scope 3 early — supply chain engagement takes time.
- Create centralized repositories to streamline repeatable cycles.
- Treat all data as if it may require assurance in future years.
Not sure which reporting frameworks or data you actually need?
OBATA works with organizations at every stage of sustainability reporting — from first-time disclosures to mature, multi-framework programs.
Schedule a Complimentary Consultation →
Phase 2: The Art
Where strategy and data become narrative, clarity, and visual experience. This is where structure, writing, and design convert complex information into a stakeholder-ready report.
Step 4: Develop Your ESG Narrative
Narrative development transforms data and strategy into a clear, engaging story. Effective sustainability narratives balance strategic relevance and transparency without overstating progress.
Key Components
- Establish message framework and major themes.
- Draft CEO or leadership letters.
- Develop governance and risk sections.
- Write environmental, social, and operational narratives.
- Conduct SME interviews for context and accuracy.
- Integrate data insights into narrative.
Useful Tips
- Use a single lead writer for consistency.
- Start drafting early — content delays stall everything downstream.
- Prioritize clarity over volume; transparency builds trust
To avoid common disclosure and narrative gaps, review our guidance on sustainability reporting pitfalls.
Step 5: Design the Report Experience
This step defines the look, feel, and user experience of the report before full creative execution. Information hierarchy and navigation are critical credibility signals in lengthy ESG disclosures.
Key Components
- Define layout options and visual direction.
- Establish information hierarchy.
- Plan data visualization types (charts, tables, infographics).
- Align to brand standards.
- Plan user experience across:
- microsites
- interactive webpages
- dedicated report hubs
- PDF formats
- Apply accessibility and readability principles.
See examples of digital and print report experiences in our sustainability, CSR & impact portfolio.
Current Trends Shaping Upcoming Reports
- Web-based report experiences (microsites, webpages).
- Modular structures for repurposing content.
- Visual storytelling to reduce narrative density.
- Landscape orientation that improves on-screen readability.
- Clear navigation for lengthy disclosures.
- WCAG-aligned accessibility design.
Useful Tips
- Use representative draft text for concept testing.
- Review layout across desktop, tablet, and mobile.
- Establish navigation early — structure shapes credibility.
Step 6: Prepare and Publish the Report
Where narrative and visual direction come together into final deliverables. Attention to accessibility, consistency, and cross-functional review cycles strengthens trust in the final product.
Key Components
- Complete layout and formatting.
- Refine data visualizations.
- Conduct editorial and fact-check reviews.
- Apply accessibility tagging.
- Produce final deliverables:
- Interactive PDF
- Microsite
- Webpage or report hub
- Publish report through your website or microsite.
- Submit disclosures to applicable frameworks or ratings systems.
For end-to-end report preparation and coordination, explore our ESG reporting services.
Useful Tips
- Budget time for multiple review rounds.
- Conduct accessibility checks early to reduce rework.
- Host reports on a dedicated landing page for discoverability.
Step 7: Communicate and Engage Stakeholders
Once published, the report becomes a year-round communication tool. The strongest reporting programs integrate these insights into ongoing investor, employee, and partner engagement.
Key Components
- Launch the report through owned channels.
- Integrate highlights into investor communications.
- Share content through microsites or webpages.
- Develop internal communications.
- Engage suppliers and business partners.
- Publish supporting content (articles, infographics, short videos).
- Update sustainability stakeholders quarterly or semiannually.
Useful Tips
- Treat amplification as an ongoing program.
- Repurpose high-value content for multiple channels.
- Keep messaging consistent across ESG, IR, and corporate communications.
Learn More
In Summary
High-quality ESG reporting integrates scientific rigor — strategy, frameworks, data, and assurance readiness — with the art of communication — clear narrative, intuitive structure, and accessible report experiences.
Organizations that adopt a structured, repeatable process consistently produce reports that withstand scrutiny and strengthen stakeholder trust.
Explore ESG & Sustainability Reporting Services →
Not sure where to start with your ESG reporting process?
Talk with OBATA about your goals, reporting requirements, and where you are in the sustainability journey.