Exporting in new era: ESG reporting as strategic enabler for global market entry

IN an increasingly competitive and sustainability-conscious global marketplace, Sri Lankan exporters can no longer afford to view Environmental, Social and Governance (ESG) reporting as a corporate luxury or compliance burden.

- By Eranda Roshan Fernando

Instead, proactive ESG engagement must become a strategic priority if the country’s export sector is to remain relevant, competitive and resilient in the years ahead.

ESG as a market passport

Global buyers, especially in the European Union and North America, are tightening regulations and expectations around ESG standards. Initiatives like the EU’s Corporate Sustainability Reporting Directive (CSRD), the Carbon Border Adjustment Mechanism (CBAM) and growing consumer preference for ethical sourcing mean that ESG disclosures are fast becoming a passport to access premium markets. Exporters who fail to align with these evolving requirements risk being shut out of lucrative value chains.

Investor confidence and ESG

Increasingly, investors are incorporating ESG performance into their decision-making processes. For Sri Lankan exporters seeking to attract foreign direct investment or build long-term strategic partnerships, strong ESG credentials are increasingly shaping market positioning and investor perceptions. Transparent ESG reporting enhances a company’s reputation, demonstrates risk awareness and signals long-term viability factors that can significantly influence investor confidence and engagement.

Supply chain resilience and operational efficiency