A new report by KPMG International, the 2025 ESG Assurance Maturity Index, reveals a pivotal shift in how companies view environmental, social, and governance (ESG) assurance.
While the overall maturity score dipped slightly, the report highlights that leading companies, particularly those subject to the EU’s Corporate Sustainability Reporting Directive (CSRD), are no longer seeing ESG assurance as a mere regulatory hurdle but as a strategic driver of business value.
Growing divide:
The Index, which surveyed 1,320 senior executives and board members, categorizes companies into three groups based on their ESG assurance maturity.
A significant gap has emerged between the top 25% of performers (“Leaders”) and the bottom 25% (“Beginners”).
Leaders: With an average score of 65.21, these companies are characterized by strong board engagement, advanced use of digital tools, and the strategic integration of ESG into their core operations.
Beginners: Scoring just 30.54 on average, these organizations are still building foundational capabilities with limited governance and underdeveloped data systems.
Advancers: The middle 50% of companies, with an average score of 45.73, are making progress but have significant room for improvement.
The report emphasizes that 76% of businesses remain in the early or mid-stages of ESG maturity, underscoring the urgent need for a more proactive approach.
ESG Assurance as a strategic growth lever:
For the leading companies, the benefits of embracing ESG assurance are already translating into measurable business returns.
• 60% of CSRD Wave 1 companies expect to gain a greater market share or expand their client base.
• 54% anticipate improved profitability.
• 52% foresee a stronger corporate reputation.
• Nearly half expect greater shareholder value and reduced costs.
Despite a shifting regulatory landscape, 74% of companies stated their sustainability reporting plans under the CSRD remain unchanged, signaling a strong, market-driven momentum.
Key trends among leaders:
The Index also shines a light on the practices that distinguish leaders from the rest.
Board Engagement: 95% of leaders’ boards are actively identifying ESG risks and opportunities, and 89% are taking concrete, ESG-related actions.
Digital Adoption: Leaders are rapidly adopting digital technologies to enhance their ESG reporting, with significant increases in the use of ESG platforms, dashboards, and even generative AI.
Operational Gaps Persist: Despite these advancements, a major opportunity for improvement exists in the operationalization of ESG targets. Only 5% of all surveyed companies have their ESG goals fully integrated into operational functions, with monitoring and incentives in place.
Call to action:
To help organizations progress along the maturity curve, KPMG recommends five key actions:
Strengthen Governance: Establish board-level oversight for ESG risk and performance.
Build Capabilities: Invest in internal expertise for data management and standard interpretation.
Enhance Data Systems: Develop robust systems for collecting and validating assurance-grade ESG metrics.
Adopt Digital Tools: Leverage technology to streamline reporting and improve data quality.
Engage the Value Chain: Extend ESG practices to suppliers and partners to ensure credibility and consistency.
