KPMG releases 2025 ESG Assurance Maturity Index: Companies see tangible business value from ESG Assurance

Highlights

A cohort of Leaders – including EU CSRD Wave 1 reporters – jump ahead
Companies see increasing benefits from ESG reporting and assurance
Stakeholder pressure for reporting continues to grow

2 September 2025 — 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.

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

Scott Flynn

Global Head of Audit

KPMG International

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.

The data confirms what we’ve long believed — ESG assurance is not just about compliance, it’s about creating long-term value. Organizations need to approach reporting and assurance with intention that aims to strengthen stakeholder trust through proportionate action.

Mike Shannon

Global Head of ESG Assurance

KPMG International

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.

The overall lack of progress in operationalizing targets is worrying. It is important that sustainability goals drive true strategic change in the way that businesses operate, rather than just becoming a framework for reporting.

Neil Morris

Global Head of Assurance and ESG Methodology

KPMG International

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.

For media queries, please contact: 

Brian O’Neill
Senior Manager, Global Strategic Communications & Media Relations
KPMG International
T: +44 7823 668 689
E: Brian.O’Neill@kpmg.co.uk

About the Index

The KPMG ESG Assurance Maturity Index benchmarks organizational readiness across five pillars: governance, strategy, risk management, metrics & targets and assurance practices. It provides a roadmap for companies to assess their ESG assurance maturity and prepare for evolving stakeholder expectations.

About KPMG International
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively. KPMG firms operate in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.