Only 1 in 4 Companies Very Confident in Meeting ESG Reporting Requirements
According to a new survey released by professional services firm KPMG – the “KPMG U.S. ESG Survey, only around a quarter reporting confidence in meeting ESG reporting requirements across several jurisdictions. KPMG surveyed more than 200 business leaders with responsibility for aspects of their companies’ ESG strategy, at companies with more than $1 billion in revenue across multiple industries.
The executives reported growing pressure to increase transparency on their sustainability progress and efforts, the greatest source of this pressure did not come from regulators, but instead from supply chain partners. About 88% of respondents saying that these stakeholders are demanding ‘some’ or ‘a great deal’ of increased ESG reporting and transparency (vs 80% for regulators). Other top sources of demand for more ESG transparency are coming from employees (82%), institutional investors (81%) and customers (81%).
While pressure builds from multiple stakeholders to improve transparency, however, only around half of respondents (53%) reported being at least somewhat confident in their ability to meet sustainability reporting requirements in the U.S.. And only a quarter feel confident that they can meet future ESG reporting requirements in the U.S., EU and other areas, with two-thirds expecting to be required to report in 3 to 4 jurisdictions.
Katherine Blue, KPMG U.S.ESG and Climate Change Leader..
“ESG is too often discussed as a compliance exercise, but businesses continue to report that pressure for engagement comes from not just government regulators, but also investors and customers. Today, supply chain leads the way, meaning both public and private companies must think critically about their strategy.”
Companies increasingly expect their ESG strategies to contribute to positively to business and financial outcomes, in areas ranging from M&A and new product opportunities to talent and customer retention. Although many executives are concerned about keeping up with complex and changing sustainability regulatory requirements.
Rob Fisher, KPMG U.S. ESG Leader said..
“These results underscore that ESG provides businesses with a clear opportunity to differentiate themselves and gain a competitive edge. We found businesses see many levers by which ESG can drive financial value, but that also drives complexity for organizing a cohesive, well-understood strategy that can overcome some very real challenges businesses are facing today.”
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