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      Tracking ESG assurance maturity amongst peers

       

      The third edition of KPMG ESG Assurance Maturity Index captures a pivotal moment in ESG reporting. As regulatory frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the IFRS® Sustainability Disclosure Standards gain traction, organisations are being called to act, not merely react. 

      KPMG surveyed senior executives and board members with ESG reporting and assurance knowledge at 1,320 companies across industries and global regions, with a mean revenue of US$16.8 billion. Of these, 310 companies identified that they reported and obtained assurance over their sustainability disclosures in accordance with the Corporate Sustainability Reporting Directive (CSRD) for financial years beginning on or after January 1, 2024 (Wave 1). We also expanded the sample size to include respondents from Africa, Mexico and the United Arab Emirates, to ensure representation from across each continent.

      The data reveals that while some sectors are advancing with confidence, others are still navigating early stages. However, across the board, the message is clear: ESG assurance is not a destination, it is a journey that demands courage, clarity, and commitment.

      Video: ESG Maturity Index

      Insights into ESG reporting maturity in Australia

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      ISSB adoption

      KPMG’s inaugural ESG Maturity survey had taken place before Australian Treasury announced the adoption of ISSB equivalent standards, while the 2024 ESG Maturity survey was undertaken with Australian companies aware of proposed ISSB adoption through draft Australian Sustainability Reporting Standards (ASRS) legislation.

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      Awareness of ESG reporting

      The average ESG maturity for Australian headquartered companies has increased slightly indicating that Australian companies are now actually more aware of the complexities of ESG reporting and, with a better understanding of expectations, better appreciate the task ahead.

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      Increasing ESG maturity

      Australian Boards and management are better at knowing what they don’t know about ESG reporting which may be contributing to the slight increase in ESG maturity in the Australian context. Management and boards are re-assessing their own skills and knowledge gaps and maturing in their understanding and ability to challenge and critically evaluate ESG risks and opportunities as their companies ESG reporting develops.

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      Timeliness of reporting

      In Australia, the other interesting area not called out in this ESG Maturity survey relates to the timeliness of reporting. Draft ASRS legislation will require reporting at the same time as the Annual Report. For many companies producing ASRS compliant reporting at the same time as their annual report will also be a big challenge given the immaturity of data collection, reporting preparation and assurance process that need to be built into an overall reporting timetable.

      The regulatory certainty that has been established in Australia around reporting under the IFRS® Sustainability Disclosure Standards requirements has given businesses the confidence to invest in their technology and data governance.

      Daniel Camilleri

      ESG Assurance Leader

      KPMG Australia

      Daniel Camilleri

      Key ESG reporting facts

      • 76% percent of companies remain in early or mid-stages of ESG assurance maturity. Clients should focus on building strong governance, data, and skills foundations to move up the maturity curve.
      • Preparing for CSRD assurance takes over a year and requires deep coordination across audit committees, boards, and your external assurance provider.
      • Companies complying with CSRD report stronger stakeholder trust, improved profitability, and increased market share. Clients should view ESG assurance as a lever for competitive advantage.
      • Companies should align ESG reporting with investor expectations and market trends, not just regulatory timelines.
      • Companies are capturing and reporting more ESG metrics, and increasing use of AI, cloud, and ESG dashboards. Clients should invest in digital tools to streamline ESG data management.
      • 76% of companies remain in early or mid-stages of ESG assurance maturity. Clients should focus on building strong governance, data, and skills foundations to move up the maturity curve.

      Download report

      Read our results

      ESG Assurance Maturity Index

      KPMG surveyed 1,320 senior executives and board members to help companies gauge the relative maturity of their ESG reporting programs.

      Read our results

      How does your ESG maturity compare against your peers?

      Take our short survey to see how your company's ESG maturity compares against your peers. Upon completion, download our full report to learn how you can become ready for ESG assurance.

      Start the survey

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