Business entities can compile ESG reports, a specialized type of sustainability reporting, to inform stakeholders about potential and actual environmental and social impacts. ESG reporting focuses more on specific, measurable indicators and can be utilized for internal assessment of non-financial risks and external disclosure regarding their management. This study aims to characterize the evolution of ESG reporting under the influence of the concept of sustainable development and other theoretical frameworks. ESG factors play a central role in sustainable development as a tool for demonstrating the contribution to achieving the SDGs to stakeholders. Moreover, some differences have been identified between classical sustainability reporting and ESG reporting, which allowed the formulation of the definition of “ESG reporting” as a type of non-financial reporting within the field of sustainable development, which is a subset of the sustainability report. It is created to provide stakeholders with information regarding the non-financial aspects of the company’s operations by highlighting clearly defined indicators related to environmental risks, social responsibility, and corporate governance, primarily for the present time. The main provisions of three theories—stakeholder theory, legitimacy theory, and institutional theory—were analyzed within the research. A criteria system for assessing the ESG reporting process has been developed and proposed. It describes the criteria for evaluation, their characteristics, possible indicators, and evaluation procedures within each criterion. It is believed that applying these criteria will ensure a systematic approach to identifying areas for improvement in the ESG strategy and ESG reports of businesses.