Test for crosspost article edits is not reflecting realtime 2024

Meanwhile, the gap between organisation leaders and beginners widens. @2024

Almost one-third (29%) of companies perceived themselves as ready to have their environmental, social, and governance (ESG) data independently assured, despite looming regulatory deadlines.

According to KPMG’s annual ESG Assurance Maturity Index, the current rate remained virtually unchanged from nine months ago at 25%.

Meanwhile, organisations were classified based on maturity into leaders (29%), advancers (46%) and beginners (26%).

Despite the limited increase, the research revealed that the percentage of companies in the leader category has grown, along with their average score seeing a 6% rise.

“Boards are increasing their focus on it and leaders are reporting a growing range of benefits as the discipline involved in getting ready for ESG assurance permeates across systems, processes, controls, and governance,” Larry Bradley, Global Head of Audit at KPMG, said.

However, a gap has widened between leading companies and those at the early stage of assurance readiness.

Compared to leaders and advancers, who have also risen by 3%, beginners recorded a 6% decline, prompting KPMG to warn these companies that they are reaching a point of needed concerted action.

Furthermore, the research observed that the higher a company’s revenue, the more likely it is to be advanced in its ESG assurance preparations, as those with over $100b revenue saw a peak score at 69.5 on a 0-100 scale, whilst those under $5b recorded a 39.3 score.

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