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Top Mistakes Companies Make in Sustainability Reporting (And How to Avoid Them)

Discover the top mistakes Philippine companies make in sustainability reporting—and how to avoid them. Learn how GCSS, Inc. helps turn ESG reports into investor trust and green financing opportunities.

Updated September 2025

In the Philippines and globally, sustainability reporting is no longer just about publishing a glossy CSR booklet. With SEC Memorandum Circular No. 10, s. 2022, global frameworks like IFRS S1, IFRS S2, and TCFD, and increasing investor scrutiny, companies must treat their sustainability reports as strategic disclosures—not side projects.

Yet many organizations still fall into the same traps. These mistakes don’t just weaken credibility—they can also cost companies access to investors, green financing, and stakeholder trust.

Don’t let your reporting fall short. 

1. Treating Sustainability Reporting as a Compliance Exercise

Too often, companies see reporting as a box-ticking exercise for regulators. This narrow view produces reports that lack strategic insight and fail to resonate with investors.

How to avoid it: Shift your approach from compliance to value creation. Use ESG reporting to connect business performance, risk management, and climate action.

Need to move beyond compliance?
 GCSS, Inc. helps companies design value-driven sustainability reports

2. Failing to Align with Global Frameworks

Local compliance is only step one. Without aligning with IFRS Sustainability Standards and TCFD recommendations, your reports may fall short for investors who compare disclosures globally.

How to avoid it: Map your disclosures against SEC MC 10-2022, IFRS S1/S2, and TCFD pillars. Work with a sustainability consultant to bridge gaps.

3. Weak Governance Oversight

When boards of directors and executives treat ESG reporting as the sole responsibility of CSR or compliance teams, reporting quality suffers.

How to avoid it: Ensure corporate governance structures include ESG oversight at the board level, with clear accountability for disclosures.

Strengthen your board’s ESG readiness.
GCSS, Inc. offers Corporate Governance and Resiliency services

4. Inconsistent or Unreliable Data

Poor data systems often lead to reports filled with gaps, inconsistencies, or unverifiable claims. This damages credibility with investors and regulators.

How to avoid it: Invest in data collection and management systems that are auditable, standardized, and scalable.

5. Ignoring Materiality

Some companies fill their reports with generic ESG content, missing the issues that actually matter to stakeholders and investors.

How to avoid it: Conduct a materiality assessment to identify your most relevant ESG issues—whether climate change, workforce diversity, or supply chain resilience.

Not sure where to start?
GCSS, Inc. guides companies through materiality and stakeholder engagement

6. Neglecting Climate Risk Disclosures

With the Philippines highly vulnerable to climate change, omitting disclosures on physical and transition risks is a major red flag for investors.

How to avoid it: Integrate TCFD-aligned reporting into your sustainability reports, including governance, strategy, risk management, and metrics/targets.

7. Underestimating Stakeholder Communication

Some companies produce technically sound reports but fail to communicate them effectively. If employees, customers, or investors don’t understand your ESG story, its impact is lost.

How to avoid it: Simplify disclosures into clear narratives. Use integrated reporting to connect sustainability to business resilience and growth.

Turn ESG data into investor-grade storytelling.
Talk to GCSS, Inc. about integrated reporting solutions

Why This Matters Now

By 2025, sustainability reporting is tied directly to regulatory compliance, investor confidence, and green financing access. Avoiding these mistakes is no longer optional—it’s a competitive necessity.

Companies that produce credible, integrated sustainability reports build trust, attract capital, and secure long-term resilience.

Transform your sustainability reporting into a competitive advantage. Book a consultation with GCSS, Inc. today or email us at sales@gcssinc.com.

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Future-proof your reporting today—and lead confidently in the global ESG arena of 2025.

Talk to GCSS, Inc. today