According to Corporate Knights: Europe's top 6 sustainability leaders… How did or didn’t they report ESRS in a year of regulatory confusion?

Europe's top 6 sustainability leaders according to Corporate Knights… How did or didn’t they report ESRS in a year of regulatory confusion?

Corporate Knights just published their inaugural Europe 50 ranking, a list intended to spotlight the most sustainable corporations on the continent. It’ll be interesting to see which rankings for Europe get prioritised, following a turbulent year marked by a lack of clarity on the implementation of regulatory standards (ESRS, EU Taxonomony, Omnibus, etc.).

As the CSRD began to reshape the way companies disclose ESG information, many organisations have found themselves navigating unclear expectations, on many occasions after already publishing and allocating heavy resources. Against this backdrop, Corporate Knights evaluated corporates using it's existing 2025 Global 100 methodology. The Europe 50 ranking draws from the STOXX Europe 600 Index and the top 100 Europe-headquartered public companies according to that methodology. Full list of eligible companies here

Per Corporate Knights, these six companies distinguished themselves through their sustainable revenue and investment profiles. Vestas and SMA Solar achieved the rare feat of 100% sustainable revenue and investment, underscoring how deeply sustainability is embedded in their core business models. Signify, Ørsted, and Alstom followed closely, with sustainable revenue figures above 75%, and Schneider Electric maintained a strong balance of 74% sustainable revenue and nearly 80% sustainable investment. These metrics not only validate their top rankings but also reflect tangible business alignment with the green transition—not just in reporting, but in operations and capital allocation.

I was curious… how are the highest-rated companies in this list responding to the ESRS? Specifically, I looked at the top six performers, meaning those receiving an A+, A, or A- from Corporate Knights, to see whether and how they referenced ESRS in their latest annual reporting. Which material topics did they disclosed to?

The Top 6 Europe 50 Companies: A Look at Their ESRS Disclosures

Double Materiality and Disclosure

A defining feature of the European sustainability reporting standards is the principle of double materiality. This approach requires companies to look both ways: assessing how sustainability issues, such as climate related risks, affect their business, and how their business activities impact the environment and society. By applying double materiality, companies provide stakeholders with a hollistic view of their sustainability risk and opportunities. The CSRD mandate that companies deliver both qualitative and quantitative disclosures. This includes detailed reporting on governance structures and risk management practices, particularly in relation to climate risks and other sustainability risks. By embracing double materiality, companies can better identify and manage the risks and opportunities that arise from their interactions with the environment and society, ultimately supporting more resilient and responsible business practices. So what is material to Corporate Knights' European A-listers?

1. Schneider Electric SE (France); ESG Ratings: Rated A+

Schneider Electric stood out not only as the top-ranked company but also as a leader in ESRS transparency. Their 2024 Sustainability Report is formally structured around ESRS and includes independent assurance. The company's ESRS disclosures are informed by input from various different stakeholders.

Disclosed ESRS Topics:

• E1: Climate Change
• E2: Pollution
• E5: Resource Use & Circular Economy
• S1, S2, S3, S4: Social topics across workforce, supply chain, affected communities, and consumers... notable focus on due diligence and compliance with environmental standards throughout its supply chains and value chains
• G1: Business Conduct

2. Vestas Wind Systems A/S (Denmark); Rated A

Vestas’ 2024 annual report marks its first full CSRD & ESRS-aligned disclosure. The Danish wind turbine giant provides a robust accounting of environmental and social issues. This includes detailed carbon reporting, tracking of carbon emissions, and disclosures on energy consumption and streamlined energy processes.

Disclosed ESRS Topics:

• E1: Climate Change (including the company’s approach to environmental risks as part of its ESRS-aligned disclosures)
• E3: Water & Marine Resources
• E4: Biodiversity & Ecosystems
• E5: Circular Economy
• S1, S2, S3: Workforce, Workers in the value chain, and affected communities
• G1: Governance & Conduct

3. SMA Solar Technology AG (Germany); Rated A

SMA Solar publishes information, but their 2024 reporting makes no direct mention of ESRS / CSRD alignment. They highlight topics like climate protection and circularity, and also emphasize sustainable practices and managing environmental impact, which suggest alignment in spirit, if not in format. The company takes a strategic approach to sustainability, integrating these considerations into their overall operations.

ESRS Status: No direct ESRS mention.

Using AI to detect, these are the likely topics covered elsewhere in disclosed data: E1 (Climate), E5 (Circular Economy), possibly E2 (Pollution)

4. Alstom SA (France); Rated A-

Alstom doesn’t explicitly follow ESRS in its report, but their ESG commitment is clear. Their Universal Registration Document and website list a broad array of third-party rating agencies. Still, they had a clear passion for their ESG ratings and published them on their website, indicating that they do well to communicate with big rating agency players in the space.

• MSCI: AA
• CDP: A (Climate)
• Sustainalytics: 21.5 (Medium Risk)
• Moody’s: 69/100
• Ecovadis: Platinum (86/100)
• Dow Jones Sustainability Index: Top 6% in industry

Using AI to detect, these are the likely topics covered elsewhere in reported data:  No direct reference, but topic alignment appears likely

5. Ørsted A/S (Denmark); Rated A-

Ørsted’s reports are among the most clearly aligned with ESRS. As an early adopter, they have structured their sustainability disclosures around CSRD/ESRS mandates. Ørsted exemplifies how large companies and listed companies are leading the way in ESRS adoption.

Disclosed ESRS Topics:

• E1: Climate Change
• E4: Biodiversity
• E5: Circular Economy
• S1, S2, S3: Own workforce, Workers in the Value Chain, Affected Communities
• G1: Governance

6. Signify (Netherlands); Rated A-

While Signify’s 2023 sustainability supplement does not include a full ESRS declaration, it signals strong alignment. The company outlines material areas that correspond with ESRS standards. Signify also addresses evolving sustainability disclosure requirements, including those related to human rights in its value chain.

Disclosed ESRS Topics:

• E1: Climate Change
• E5: Circular Economy
• S1, S2: Own Workforce, and Workers in the Value Chain
• G1: Business Conduct

What Does the Corporate Sustainability Reporting Directive Mean Going Forward?

Despite a chaotic regulatory year in Europe, most corporates have leaned into ESRS topics either explicitly or by reporting on the topics they very obviously dedicated resources to across 2023 and 2024. With the CSRD making ESRS mandatory for a growing set of companies, albeit more slowly than pre-Omnibus, companies will likely have more decisions to make with the new rules applying to both non-EU companies and EU companies. The real question is whether they will maintain or expand these disclosures, especially in the face of political and regulatory pullbacks, or more specifically:

1. Will these six companies align as ESRS leaders once standardisation inevitably, albeit slowly, solidifies or will reporting fatigue / regulatory uncertainty begin to slow progress on the voluntary side?
2. Are these leaders may serve as early indicators of where member states (EU member states) responsible for implementing these rules into national law are headed?
3. Will the European Commission continue to advance the EU directive / European regulation landscape? Will the diligence directive's several measures for compliance, including enhanced reporting requirements for financial institutions, asset managers, and other firms keep scaling back or pendulum swing back?

Only time (and hopefully next year’s report) will tell.

The ESRS are sustainability reporting standards ESRS, developed by an independent body bringing together various different stakeholders, and these standards are part of a broader classification system, such as the EU taxonomy, which defines sustainable economic activity. The new ESG regulation and ESG regulations focus on transparency, financial risks, and the promotion of sustainable products, with companies required to report on their economic activity and environmental standards. Implementation of these regulations will require companies to focus on and be focusing on compliance with evolving sustainability disclosure requirements

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