NEW YORK — A quiet shift is underway in corporate boardrooms: what once looked like a regulatory burden is increasingly being recognized as a lever of competitiveness. KPMG’s 2025 ESG Assurance Maturity Index, based on a survey of 1,320 senior executives and board members worldwide, finds that sustainability assurance is delivering tangible business value — from profitability and market share to stronger reputations.
“ESG assurance is not just about compliance, it’s about creating long-term value,” said Mike Shannon, KPMG’s Global Head of ESG Assurance. “Organizations need to approach reporting and assurance with intention that aims to strengthen stakeholder trust through proportionate action.”
Leaders Pull Ahead
The Index places organizations into three categories of ESG assurance maturity. Leaders, the top 25 percent, score an average of 65.2, compared with 45.7 for Advancers and just 30.5 for Beginners. These Leaders are marked by strong board engagement, advanced use of digital platforms, and integration of ESG into operations.
Yet overall progress remains uneven. The global readiness score slipped slightly to 46.9, with 76 percent of businesses still in early or mid-stages.
“ESG assurance is a journey that demands courage, clarity, and commitment,” noted Scott Flynn, KPMG’s Global Head of Audit .
Tangible Returns From Reporting
For the first wave of companies reporting under the European Union’s Corporate Sustainability Reporting Directive (CSRD), the benefits are already measurable. Sixty percent expect to expand their market share or client base, while more than half anticipate higher profitability and stronger reputations. Nearly half foresee greater shareholder value and lower costs .
Despite regulatory uncertainty — including pending EU “Omnibus” proposals that may narrow CSRD’s scope — 74 percent of firms say their reporting plans remain unchanged, signaling momentum driven by markets and stakeholders rather than mandates .
Technology and Governance Gains
KPMG’s data shows rapid adoption of digital tools among Leaders over the past three years: ESG dashboards jumped 27 points to 53 percent usage, while ESG platforms rose 30 points to 50 percent. Even generative AI, still in its infancy, is being used by 16 percent of Leaders to improve data management .
At the governance level, 95 percent of Leaders’ boards actively identify ESG risks and opportunities, and nearly nine in ten are taking ESG-related actions. But gaps remain. Only 5 percent of companies have fully operationalized ESG targets across all business functions with monitoring and incentives in place — a critical step still largely missing.
What Leaders Should Take Away
For policymakers, investors, and executives, the Index points to both urgency and opportunity. Larger firms and CSRD Wave 1 reporters are reaping rewards, but the maturity gap with smaller and slower-moving peers is widening. The lesson is clear: treat ESG assurance as a strategic driver, not a compliance exercise.
As global standards converge, from Europe’s CSRD to the IFRS Sustainability Disclosure Standards and the new ISSA 5000 assurance framework, the pressure to act will intensify. Companies that embed ESG into governance, data, and digital systems today will not only be ready for future regulation but also positioned to build resilience and value in a volatile world.
Read the full KPMG ESG Assurance Maturity Index 2025 here: Full Report.
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