Highlights
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A cohort of Leaders – including EU CSRD Wave 1 reporters – jump ahead
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Companies see increasing benefits from ESG reporting and assurance
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Stakeholder pressure for reporting continues to grow
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KPMG International surveyed 1,320 senior executives and board members with ESG reporting and assurance knowledge across industries and regions, representing organizations with an average revenue of US$16.8 billion. The 2025 KPMG ESG Assurance Maturity Index reveals that ESG assurance is no longer viewed as just a regulatory requirement; it’s proving to be a strategic lever for building trust, unlocking value and enhancing organizational resilience.
Yet, for many companies, there is still room to improve. Amid geopolitical headwinds and a shifting regulatory agenda, this year’s Index shows an overall readiness score of respondents has dipped marginally, from 47.7 to 46.9. Even now — two years since KPMG’s initial survey — 76 percent of businesses remain in the early or mid-stages of ESG maturity.
Leaders vs. Beginners: A growing maturity gap
The Index categorizes organizations into three categories of ESG assurance maturity:
- Leaders (top 25th percentile) score an average of 65.21
- Advancers (middle 50th percentile) score 45.73
- Beginners (bottom 25th percentile) score just 30.54
Leaders are distinguished by strong board engagement, advanced digital adoption and strategic integration of ESG into operations. In contrast, Beginners are still building foundational capabilities with limited governance structures and underdeveloped data systems. This gap underscores the urgency for organizations to accelerate their ESG assurance readiness.
A strategic lever for growth
The data reveals that CSRD Wave 1 companies embracing ESG assurance are already seeing measurable returns:
- 60% expect a greater market share or an expanded client base.
- 54% anticipate improved profitability, while 52% foresee stronger reputations.
- Nearly half expect greater shareholder value and reduced costs.
Despite regulatory ambiguity, 74% of companies say their sustainability reporting plans under the CSRD remain unchanged — signaling strong market-driven momentum, not just mandates.
Leaders show strong board and tech momentum, but operational gaps persist
- 95% of Leaders’ boards are actively identifying ESG risks and opportunities and 89% are taking ESG-related actions.
- Leaders are rapidly adopting digital tools – increasing over the last 3 years:
- ESG Platforms: 50% usage (+30 pts)
- ESG Dashboards: 53% usage (+27 pts)
- Generative AI: 16% usage (+16 pts)
- However, only 5% of companies have ESG targets fully broken down into all operational functions, monitored and incentivized — highlighting a major opportunity for improvement.
Learning from the leaders
To help organizations move along the maturity curve, KPMG recommends five key actions:
- Strengthen governance: Embed ESG oversight at the board level, ensuring accountability for risk identification, performance monitoring and reporting.
- Build necessary skills and capabilities: Invest in internal expertise to interpret standards, manage data and engage effectively with assurance providers.
- Enhance data management systems: Develop robust systems to collect, validate and report ESG metrics that meet assurance-grade requirements.
- Adopt digital technologies: Leverage ESG platforms, dashboards and AI tools to streamline reporting and improve data quality.
- Engage the value chain: Extend ESG practices to suppliers and partners to ensure consistency and credibility across disclosures.
Leadership Takeaway:
ESG is not just about reporting — it’s about future-proofing your business.
The real question: Is your organization moving fast enough?
Source – KPMG
