An evolving regulatory and international context: from compliance to strategic value
The world of corporate sustainability reporting does not stand still. In the last year, companies around the world have faced significant changes, both in the ways and tools to communicate their progress. From the simplification of the Omnibus I package, which represented an important factor of change influencing the application and scope of the ESRS, to the consolidation of the CSRD (Corporate Sustainability Reporting Directive), up to the growing international adoption of the IFRS Sustainability Standards and the release of the most recent GRI standards, such as GRI 102 on climate change.
Such developments highlight how critical it is for sustainability leaders to constantly update their reporting practices, ensuring that the data reported is not only compliant with international regulatory standards, but also relevant and comparable.
In the context of the UN Global Compact, the mix of these trends and updates contributed to the revision of the Communication on Progress (CoP) 2026 questionnaire, strengthening its interoperability and relevance as main priorities, as well as favoring the integration of topics of increasing materiality for participating companies, such as the circular economy and sustainable finance, also based on the feedback collected from participating companies. This is a review that benefits the transparency and quality of information available to stakeholders (investors, customers, employees, suppliers).
In this context, reporting goes beyond simple regulatory compliance: it becomes a strategic tool that allows companies to integrate sustainability into decision-making choices and governance models, strengthen credibility, better manage risks, strengthen trust in how companies manage crucial issues such as climate change, ethics or human rights, and discover new responsible business opportunities.
The growing attention of investors towards ESG themes and trajectories, in fact, makes reporting a key element for attracting investments and improving financial performance. Companies that integrate sustainability into their strategy are often more resilient and competitive in the long term: according to a recent MSCI analysis on a sample of over 2,500 companies globally, companies with higher ESG ratings (AAA) attracted 15 times more index-linked capital than those with low ratings (CCC), concrete proof that capital is moving towards more sustainable companies.
Likewise, consumers and customers reward brands that make inclusive and responsible production choices: The Digital & Sustainable Observatory of the Polytechnic of Milan reports that:
- 67% of Italian consumers consider sustainability a relevant issue in their daily choices
- and in e-commerce, 2 out of 3 consumers have changed their habits to reduce their environmental impact.
The role of the Communication on Progress
Today the CoP confirms itself as a strategic and international tool to guide companies along the path of reporting and measuring impact in a systematic manner, offering the possibility of comparing themselves with peers, learning from best practices and strengthening their continuous improvement processes. In this way, reporting becomes a tool for training, comparison and strategic growth, capable of transforming data into informed decisions and concrete impact.
As Sanda Ojiambo, Executive Director UNGC, recalls, "Since 2023, the CoP questionnaire has helped companies measure and transparently communicate how they integrate sustainability into their strategies. In an era in which stakeholders require standardized and comparable data, the CoP allows companies to provide consistent information, fundamental for informed decisions."
Read also:
Sustainability: a strategic lever for Italian SMEs
Sustainability: record membership in 2025 for the Italian Network of the UN Global Compact
Image source: Pexels
Data sources: UN Global Compact; Pacto Mundial Rede Espana, COMUNICANDO EL PROGRESO Análisis de informes ESG 2025