Management accountants have traditionally been the stewards of financial results, cost control, budget planning, and strategic guidance.
But as environmental, social, and governance (ESG) reporting gains momentum, responsibilities are broadening to include non-financial information like greenhouse gas emissions, energy consumption, workforce diversity, and governance frameworks.
The research report, Prepared for ESG Reporting? Insights of Czech and Estonian Stakeholders examines how Czech and Estonian companies are responding to the increasing demands for ESG reporting.
With insights from corporate representatives, auditors, and other stakeholders, the report outlines the current ESG reporting readiness of Czech and Estonian companies, identifying potential barriers to reporting for small and medium-sized enterprises (SMEs).
Although the EU has introduced frameworks like the Non-Financial Reporting Directive (NFRD) and the Corporate Sustainability Reporting Directive (CSRD) to standardise disclosure practices, notable differences remain across EU member countries, according to the report. Czechia and Estonia offer an interesting comparison, as both have followed these EU frameworks but still have different approaches due to their respective government styles, economies, and priorities for their people.
Organisations are at different stages of ESG awareness
The study conducted among Czech and Estonian organisations included interviews with 30 key stakeholders, comprising 15 from Czechia and 15 from Estonia, representing a range of roles including CFOs, ESG specialists, bank representatives, and auditors.
The goal of the interviews was to understand how ESG reporting is being implemented within their organisations.
Key findings from the interviews showed that:
Awareness and preparedness are inconsistent Large, listed companies have begun adapting, but many SMEs remain uncertain about what ESG reporting means for their businesses. Some are even unaware of upcoming requirements, while others are setting up teams or dedicating new resources.
Resource and knowledge gaps are real Smaller businesses struggle with limited staff and tight budgets. Many argue that current training is too generic to be effective. Practical, tailored support is needed to transform reporting from a burden into a value-added service. Respondents expressed a need for hands-on workshops, easy-to-use templates, and more public guidance, especially for companies that lack in-house sustainability expertise.
Regulatory changes are shifting the timeline The EU has delayed mandatory ESG reporting for many companies until 2027 or later and raised the thresholds for compliance, giving companies more time to adjust. But the report notes that early adopters have a competitive advantage as expectations rise, and holding off could result in inadequate reports or missed business opportunities.
Auditors and banks are also adapting Auditors are building ESG expertise, especially around environmental standards, but say that better data and more explicit rules are urgently needed. Banks are beginning to factor ESG risks into lending decisions, even as they navigate inconsistent and mostly qualitative information from clients.
Leadership and collaboration make the difference
Companies with engaged leadership are making progress, often by collaborating across sectors, sharing lessons, and investing in practical tools and workshops. Building ESG capabilities through peer learning and collective problem-solving is a powerful accelerator of growth.
ESG reporting is now business-critical
Several key factors drive the need for ESG reporting, including addressing climate change, promoting sustainable finance, enhancing corporate transparency and accountability, managing risks and opportunities, meeting stakeholder expectations, and responding to regulatory pressures.
For management accountants, embedding ESG metrics into everyday reporting and decision-making means that ESG now sits alongside financial performance as a core part of business credibility.
EU directives like the CSRD are raising the bar for sustainability disclosures. But for Czech and Estonian organisations, the journey is complex. Differences in resources, governance, and business culture mean organisations are adapting at different speeds, and many are still at the starting line. But according to the report, early adopters are discovering that ESG reporting is an opportunity to drive operational improvements, attract new talent, and appeal to a broader investor base.
The research points to practical steps organisations can take to strengthen ESG reporting:
Invest in ESG-specific tools, training, and IT systems
Start mapping relevant data and assigning internal responsibilities
Seek external guidance and join networks for peer learning
Focus on compliance, but also look for ways to turn ESG into a source of efficiency, innovation, and long-term value
ESG reporting should be viewed as an opportunity to differentiate, attract investment, and create a more sustainable future. But successful and effective implementation of ESG reporting requires a shift in mindset, practical support, and a willingness to rethink how business impact is measured and managed.
Reporting is essential, but the focus must also be on the actual impact of sustainability measures and the development of more equitable and transparent organisations.
Explore the full research report for more insights and case studies from Czechia and Estonia.