ESG Reporting

The landscape of sustainability reporting is rapidly evolving, driven by emerging requirements from the International Sustainability Standards Board (ISSB), European Union (European Sustainability Reporting Standards, ESRS), and the U.S. Securities and Exchange Commission (SEC climate-related disclosures). These new standards, both ambitious and comprehensive, mark a significant advancement over existing frameworks. Despite their common goals, they present unique challenges due to their differences.

KPMG’s ESG Reporting service assists clients in navigating these complexities, ensuring they understand, prepare for, and confidently comply with diverse ESG reporting requirements. 

KPMG’s ESG Reporting experts offer the following services:

• Technical assistance to educate clients on ESG reporting (e.g., through workshops, peer benchmarking) and set their ESG reporting strategy and operating model ambitions
• Assist clients to interpret and apply ESG reporting requirements (HKEX Appendix 27/ISSB, ESRS, SEC, GRI, TCFD, SASB), conduct materiality assessments, select targets and metrics
• ESG reporting readiness assessments, including gap assessments between current and target state reporting, data, and operating models
• Design and implement the target operating model for people, processes, and technology, including system architecture, vendor selection and data strategy

The client aimed for reasonable assurance over its 2021 TCFD statements, with a broader goal of achieving this for all future ESG disclosures. They sought to align their ESG reporting processes with their established SOX-style financial reporting framework. KPMG initiated this by mapping the client’s TCFD climate metrics against a SOX-style Risk and Controls Matrix (RACM), identifying control gaps and areas for improvement. We provided remediation advice and assisted in implementing changes. For over 100 other ESG KPIs, we prioritized high-risk items, developed corresponding process maps and RACMs, and advised on control enhancements.

Our comprehensive approach enabled the client to implement a new risk and controls tool, tailored for both TCFD and broader ESG reporting. This resulted in improved clarity and ownership of ESG reporting processes, an effective remediation plan for risk and control gaps, and preparedness for future assurance. Ultimately, the client was able to assure their audit committee about the robustness of their controls governance.