Businesses View ESG Verification as a Strategic Advantage, According to KPMG Poll

In a recent survey, it has been revealed that the majority of businesses are still in the early or mid-maturity stages when it comes to embedding Environmental, Social, and Governance (ESG) practices into their core operations. This slow progress, reported two years into the series, is cause for concern, according to Neil Morris, Global Head of Assurance and ESG Methodology at KPMG International.

The survey, conducted among 1,320 senior executives and board members across various industries and regions, with an average revenue of $16.8 billion for the participating companies, also highlighted some promising trends. For instance, usage of ESG platforms has risen 30 percentage points to 50% among Leaders, and ESG dashboards have increased 27 points to 53%.

These Leaders, characterised by strong board involvement, advanced use of digital tools, and integrated ESG strategies, are pulling away from Beginners who struggle with underdeveloped governance and data systems. The maturity gap between Leaders and Beginners is widening, with implications for competitiveness and investor confidence.

The global context adds urgency to this issue, as capital markets increasingly price climate and sustainability risks. The ability to demonstrate credible, assured ESG data is fast becoming a precondition for access to financing and investor confidence.

Despite growing enthusiasm, overall readiness for ESG assurance slipped marginally to 46.9 from last year’s 47.7, indicating the impact of geopolitical uncertainty and shifting regulatory priorities. However, the KPMG 2025 ESG Assurance Maturity Index suggests a shift in how companies view sustainability reporting, with ESG assurance increasingly seen as a tool for competitive advantage, trust-building, and long-term resilience.

ESG assurance is not just about compliance, but about creating long-term value, as stated by Mike Shannon, KPMG’s Global Head of ESG Assurance. Many companies are already experiencing tangible returns from ESG assurance, with 60% expecting increased market share or client base, 54% anticipating stronger profitability, 52% foreseeing reputational benefits, and nearly half expecting higher shareholder value and reduced costs.

Interestingly, generative AI has reached 16% among Leaders, up from zero three years ago. This technological advancement is set to play a significant role in the future of ESG assurance.

However, only 5% of companies have ESG targets fully embedded across functions with monitoring and incentives attached. This indicates that while progress is being made, there is still a long way to go before ESG becomes fully integrated into the core operations of businesses.

The KPMG 2025 ESG Assurance Maturity Index identifies 76% of companies still in early or intermediate stages of ESG maturity, but does not specifically list leading companies or the represented regions. The market momentum for ESG assurance is not solely compliance-driven, with nearly three-quarters of companies subject to CSRD Wave 1 requirements saying their sustainability reporting plans remain unchanged despite regulatory ambiguity.

In conclusion, while progress in embedding ESG practices into core operations is slow, there are signs of promising trends among Leaders who are embracing digital tools and integrated strategies. The global context, coupled with the potential returns from ESG assurance, underscores the importance of this issue for businesses seeking to capture market share and investor trust.

Businesses View ESG Verification as a Strategic Advantage, According to KPMG Poll