The New Baseline: Sustainability Reporting in Transition

Introduction

Two years after sustainability disclosure peaked, America’s largest companies are rethinking how they report. The pattern is recalibration rather than retreat: companies are narrowing their focus, reframing their language, and tying sustainability more closely to business strategy. 

The research

This report compares sustainability reports published in 2024 and 2026 by the same 50 Fortune 500 companies: the five largest in each of 10 industry sectors. These companies are often early adopters of emerging standards, which makes them a useful indicator of where the broader market is heading.

It combines Datamaran’s AI-powered benchmarking analysis, built on a framework-neutral taxonomy of 99 external risk topics, with Joele Frank’s expertise in investor and stakeholder communications.

Key findings 

Findings include: 

• Fewer targets, sharper focus. 52% of companies reported fewer public sustainability targets, with the total down 11% across the sample. GHG reduction targets held steady.
• “ESG” is on the way out. Report titles using “ESG” fell from 13 to just two. “Sustainability” now leads, and the same shift is happening in executive job titles and CEO letters.
• Reports are getting leaner. Average report length dropped from 78 to 66 pages, and a third of companies cut their reports by 30% or more.
• Governance is holding firm. 49 of the 50 companies still maintain board oversight of sustainability.

Inside the report 

• How topic priorities are shifting toward operational execution, workforce experience, and emerging technology risks
• How companies are refining their targets and commitments, including longer time horizons for climate goals
• How materiality assessments are evolving, including the growing adoption of double materiality
• A practical checklist for the 2027 reporting cycle, with clear actions for sustainability, communications, and IR teams