Thursday, 15 January 2026
A recent regional study by Deloitte Central Europe suggests that companies across Central and Eastern Europe are still finding it difficult to clearly show how sustainability issues translate into financial outcomes, despite new reporting obligations now being in force.
The analysis reviewed more than 120 sustainability reports issued by large companies and public-interest entities in nine Central European countries, covering their first year of reporting under the new European sustainability framework. The focus was on whether companies were able to connect environmental, social and governance matters with figures that affect profits, cash flows, investments and long-term financial stability.
According to the study, most organisations have made progress in describing sustainability topics in narrative form, but far fewer have managed to express these matters in financial terms. Where financial impacts were mentioned, they were often qualitative, difficult to locate within reports or limited to areas where disclosure was unavoidable. In many cases, companies openly acknowledged that they currently lack the tools or data needed to estimate financial effects linked to sustainability risks or opportunities.
Climate-related issues and workforce matters were most commonly identified as significant across sectors, reflecting regulatory pressure and immediate operational relevance. By contrast, topics such as biodiversity or impacts on local communities were less frequently prioritised. The report notes that while sector-specific differences exist, national approaches across the region remain broadly similar at this early stage of implementation.
The study also points to limited use of sustainability-related targets in executive pay. Fewer than half of the reviewed companies included such elements in management incentive schemes, and when they did, the focus was typically on environmental goals. Social and governance factors were used less often, indicating that sustainability performance has not yet become a standard driver of remuneration decisions.
One of the most challenging areas identified was the disclosure of how sustainability factors influence current and future financial results. Only a small proportion of companies provided numerical estimates, while many relied on general explanations or transitional exemptions. Even when information was disclosed, it was rarely linked clearly to financial statements, making it harder for investors and other stakeholders to assess its relevance.
Investment and operating costs connected to sustainability actions were most visible in relation to climate initiatives. For other environmental or social areas, financial information was frequently missing or unclear. Differences in calculation methods and units further reduced the comparability of data between companies.
The review also found a noticeable gap between activities that companies consider environmentally eligible and those they classify as fully aligned with European green criteria. This suggests that, while many businesses have taken initial steps towards sustainable activities, fewer have met the stricter conditions required for full alignment.
From an assurance perspective, the study highlights that shortcomings in data quality, materiality assessments and sustainability metrics remain common reasons for auditor concerns. These issues are expected to receive increased attention as reporting practices mature and regulatory oversight intensifies.
Overall, the findings indicate that sustainability reporting in Central Europe is still in a transition phase. While compliance levels are improving, the next challenge for companies will be to turn sustainability information into decision-useful financial insight, strengthening both transparency and long-term resilience rather than treating reporting as a purely regulatory exercise.
