2025 was supposed to be the year ESG reporting got easier. The EU Omnibus Package promised less red tape, higher thresholds, and significantly fewer data points. But the latest BARC study shows it’s not quite that simple.
On paper, it looks promising: 80% of companies are freed from CSRD obligations through higher thresholds, and data points shrink by 30%.
Yet 28% of surveyed companies say: “Less work? Not really!”. Many have already figured out that ESG reporting is more than just regulatory box-ticking – it’s become a strategic imperative.
Here’s where it gets interesting: While only 17% of companies use specialized ESG software, 30% still primarily work with Excel. Leading organizations rely significantly more on BI and analytics tools and depend less on manual methods than laggards. This technology gap directly reflects in data quality – the biggest pain point for 47% of respondents.
The shift is palpable: 63% cite compliance as their main reason for ESG reporting – up from just 38% in 2023.
Reputation remains important at 56%, but fear of regulators is what really drives most companies. However, the most successful companies go one step further: They integrate ESG metrics into their financial reporting and corporate governance.
The BARC study identifies six concrete action areas – from organizational strengthening to technological roadmaps. The message is clear: Those who set the right course now will turn compliance headaches into genuine competitive advantages.
Stefan Sexl is a BARC Fellow specializing in CPM, BI and reporting. With 30 years of industry experience with leading vendors such as MIS AG, pmOne and Tagetik, he advises vendors on marketing, sales and product strategy as well as end customers on the selection and implementation of solutions.
He has a particular focus on the market for CPM and group accounting solutions including planning, consolidation, ESG, account reconciliation and other components.
Chris’ areas of expertise are software solutions in corporate performance management (CPM), planning, analytics and ESG (environmental, social and governance).
He advises companies on the identification of deployment scenarios as well as on software selection and provides support on strategic issues.
In addition, he is the author of BARC market studies and professional articles and supports project seminars in the field of ESG at universities.
