DNV Study Shows Companies Leveraging ESG Regulations to Strengthen Business Performance Amid Uncertainty

DNV Study Shows Companies Leveraging ESG Regulations to Strengthen Business Performance Amid Uncertainty

(IN BRIEF) A new study conducted by DNV and the University of Cambridge reveals that companies are using ESG regulations to enhance business performance, despite the regulatory uncertainty. The research found that 72% of businesses believe improving ESG compliance has increased their value to investors, and many businesses are proactively engaging with sustainability regulations to boost customer acquisition and strengthen stakeholder relationships. However, challenges remain, including the complexity of compliance and the need for clearer guidance and better digital tools. DNV encourages businesses to use the additional time provided by the CSRD to integrate ESG into their operations and gain a competitive edge in a sustainable economy.

(PRESS RELEASE) BÆRUM, 29-May-2025 — /EuropaWire/ — DNV, in collaboration with students from the University of Cambridge’s MPhil in Engineering for Sustainable Development program, has revealed new research showing how businesses are leveraging ESG (Environmental, Social, and Governance) regulations to improve their performance, despite the ongoing uncertainty in the regulatory landscape. The study highlights how businesses are using ESG regulations to strengthen engagement with investors, shareholders, customers, and employees, while simultaneously driving operational efficiencies and reducing costs.

The study found that 72% of businesses believe that improving their ESG regulatory compliance has positively affected their value to investors and shareholders. This shift reflects the growing recognition that transparency and accountability in ESG reporting are not only regulatory requirements but also key drivers of market confidence, long-term growth, and business value.

At DNV, we’ve observed that six in ten businesses are finding real value in sustainability regulations. A third of the companies surveyed are proactively engaging with these regulations in anticipation of benefits like improved stakeholder relationships (25%) and increased customer acquisition (38%). These findings suggest that ESG regulations offer businesses more than just compliance; they present a strategic opportunity to enhance internal operations and market presence.

Moreover, our study revealed that ESG reporting has helped businesses in various ways, including increasing operational efficiency (44%), reducing carbon emission costs (43%), and managing operational risks like supply chain disruptions (66%). These results further reinforce the idea that embracing ESG regulations is not only beneficial for the environment but also for a company’s bottom line.

Lars Sørum, Regional Manager for Europe, Supply Chain and Product Assurance at DNV, emphasized: “ESG regulation is accelerating a fundamental shift in how businesses approach sustainability. Even in regions where regulatory requirements are minimal, businesses are proactively adopting ESG practices to build transparency and trust. The challenge, however, is that many businesses lack the necessary resources, tools, and expertise to fully capitalize on the strategic value of ESG. For companies to unlock the full potential of ESG, they need the right capabilities to drive real change.”

The research also explored the implications of major regulatory frameworks, including the EU’s Corporate Sustainability Reporting Directive (CSRD), introduced in 2023. The study found that 71% of businesses were already engaged in sustainability reporting before the CSRD’s mandatory requirements took effect, with 7% exceeding the Directive’s expectations. Key drivers for early adoption included customer demand (19%) and employee engagement (17%).

However, the study also highlighted several barriers to effective ESG compliance. No company surveyed reported full compliance with all applicable regulations, reflecting the complexity and resource intensity perceived in the ESG regulatory landscape. The study was conducted in mid-February and early March 2025, just as the EU introduced the Omnibus Simplification Package to reduce the regulatory burden on businesses.

Further findings included:

• Clearer regulatory guidance (26%)
• More financial support or subsidies (26%)
• Better digital reporting tools (23%)
• Stronger best-practice benchmarks (22%)

Internally, businesses cited challenges such as:

• Integrating sustainability into financial processes (19%)
• Managing ESG data (18%)
• Supply chain due diligence (33%)
• Embedding ESG in management systems and corporate strategy (15%)

Lars Sørum added: “The extended timeline for the CSRD offers businesses a valuable opportunity to act, rather than delay. Companies should use this time to integrate ESG into their financial, governance, and supply chain systems. Those that move early will be better positioned to meet stakeholder expectations and outperform competitors in a more transparent and sustainable economy.”

Media Contacts:

Mona Ghobadi
Global Head of External Relations
Phone: +49040361497484
Mona.Ghobadi@dnv.com

Anthea Moisi
Senior Sustainability Consultant
Anthea.Moisi@dnv.com

SOURCE: DNV