Despite Pushback, EU CSRD Drives More Meaningful Sustainability Reports
Large Companies Move Ahead With Sustainability Reporting
The Salesforce Approach
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Based on the Linkedin activity of those in the sustainability business, a relative cloud of gloom hangs over the movement. The European Union likely will significantly reduce the number of companies subject to the Corporate Sustainability Reporting Directive, as well as the number of details and metrics required for disclosure, effectively blowing up the business market projections entrepreneurs used to justify investments in technology and advisory services. In the US, the change in the direction of political winds from the top has prompted many companies to back off use of the term ESG altogether, referring instead to sustainability. Nonetheless, these reports indicate that progress continues in the creation of more meaningful corporate sustainability reporting, despite a tendancy to focus on compliance.
Large Companies Move Ahead With Sustainability Reporting .png)
An analysis by the accounting firm EY of the first CSRD reports in its 2025 CSRD Barometer Report as well as the recently published Salesforce 2025 Stakeholder Impact Report demonstrate, sustainability reporting is not only alive and well, it is reaching new levels of specificity, with an increasing focus on value creation rather than compliance.
Writes EY, “The 200 reports of first-time adopters published by March 28, 2025 and analyzed within the (EY) CSRD Barometer are comprehensive. They cover EU-, EEA (European Economic Area)- and also non-EU-headquartered companies, and therefore include mandated and voluntary reporting under the ESRS (European Sustainability Reporting Standards.) Overall, it can be concluded that the companies have invested tremendous effort to set the baseline to publish CSRD-compliant and externally assured sustainability statements. The reporting is data driven and written in a very technical manner to comply with the ESRS, often confining the storytelling to the front part of the annual reports. The reports appear to fulfill compliance requirements rather than communicating meaningfully about the company's sustainability strategy, actions, and desired impact on our silent stakeholder — Mother Nature. Regardless, transparency is provided in a clearly harmonized way to drive change — and impact: 2024 reporting has set the baseline to continue the CSRD reporting journey.”
The Salesforce Approach
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The 2025 Salesforce Stakeholder Impact Report is not CSRD compliant but it begins the process by an effort to address double materiality, using a consistent means of framing issues, actions, dependencies, and metrics, and having it informally developed by EY, presumably in preparation for an eventual independent audit if Salesforce falls within the scope of the law.
In its current fiscal year, the company reports that it “conducted a preliminary double-materiality assessment to better understand significant environmental, social, and governance impacts, risks, and opportunities. This assessment is part of our proactive approach to good governance in preparing for evolving global reporting requirements, including the EU Corporate Sustainability Reporting Directive (CSRD)...Our preliminary double materiality assessment identified significant impacts, risks, or opportunities within five key topics (in alphabetical order): business conduct, climate change, end user, water, and workforce. Understanding these topics allows us to proactively address emerging risks, strategic opportunities, and long-term performance. We plan to build on this preliminary assessment by deepening our analysis and refining our disclosures. Salesforce will continue to evolve our approach to materiality in line with changes to global frameworks, best practices, and regulation.”
The 55-page report covers Impact Reduction, Equality, Philanthropy, Business Resiliency, Accessibility, Cultivating a Thriving Salesforce Ecosystem, Customer Acceleration, Creating Talent Opportunities, Salesforce Talent Alliance, Global Progress, Employee Experience and Benefits, and Health and Safety.
Instead of using the term DEI, the report emphasizes equality across the organization and a focus on aligning peoples’ interests toward organizational goals rather than internal groups. “Employees are appraised via management by objectives. Alignment and consistent and clear communication are key parts of our employee engagement,” the report states. It shares how it measures alignment along with metrics indicating high scores, along with employee engagement scores (high) and positions filled by internal candidates (about one-third.)
The environmental section raises an issue facing many organizations and the travel industry: “Travel is important to our business, from building customer relationships, collaborating with partners, and strengthening teams across the globe. However, we intend to balance these needs with our climate goals. On average, business travel accounts for approximately 7% of Salesforce’s total annual market-based emissions, with air travel being the primary contributor...“Certain in-person meetings are irreplaceable. We expect balancing growth with emissions reduction to be a key challenge in achieving our travel emissions reduction.”
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Contact: Bruce Bolger at TheICEE.org; 914-591-7600, ext. 230.
