The 2025 Deloitte Central Europe Benchmark Report offers an auditor’s perspective on the first generation of sustainability reports prepared under the European Sustainability Reporting Standards (ESRS). Covering 126 reports across nine countries — Croatia, the Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia — it examines how organizations are integrating environmental, social, and governance (ESG) information into their financial reporting under the Corporate Sustainability Reporting Directive (CSRD).

Focusing on financial connectivity, the report assesses whether companies assign measurable value to ESG factors, disclose the monetary effects of material risks and opportunities, and link sustainability data with financial statements. It also reviews auditor opinions, identifies recurring data challenges, and highlights emerging good practices from across the region.

The report explores:

• How ESG and finance intersect — and why integrated reporting drives resilience and competitiveness.
• Regional readiness — all nine analyzed countries have transposed the CSRD, though maturity levels differ significantly.
• Financial focus areas — from ESG-linked remuneration to CapEx/OpEx disclosures, many firms rely on qualitative narratives but lack quantitative depth.
• Auditor insights — assurance teams note recurring gaps in data consistency, comparability, and linkage to financial statements.

ESG Meets Finance: Lessons from the First Year of CSRD Reporting

The findings reveal a crucial reality: while transparency around ESG topics is increasing, many organizations still struggle to translate these insights into financial terms that guide strategy and investor decisions.

Despite the challenges, the first year of ESRS implementation shows rapid progress. Sustainability is no longer a communication exercise — it has become a financial imperative. Integrated ESG-financial reporting strengthens risk management, enhances investor trust, and builds long-term resilience. As regulations and assurance expectations evolve, companies embedding ESG into their financial DNA will lead the next wave of market transformation.

What we learned from the report:

1. Integration is still emerging

Only a minority of companies fully link sustainability data with financial performance. 39% provide qualitative assessments of ESG-related financial effects, while just 14% quantify them.

2. ESG-linked remuneration is growing — but slowly

44% of undertakings now tie management incentives to ESG goals, most often related to climate, DEI, and risk management KPIs. Financial institutions lead the trend, while other sectors are catching up.

3. Carbon pricing remains rare

Only 3% of companies apply internal carbon pricing — missing a key opportunity to monetize environmental impact, drive energy efficiency, and manage long-term costs.

4. Auditors’ message is clear

Transparency matters more than perfection. Even when figures are difficult to estimate, openly disclosing assumptions and data gaps builds trust and prepares businesses for future assurance.