Companies have some catching up to do in managing and implementing ESG issues
KPMG study "Steering sustainably": ESG data collection and -reporting pose major challenges
ESG data collection and -reporting pose major challenges
Berlin / Frankfurt, June 15th 2023
Most companies in Germany have anchored sustainability-related topics at the highest management level, but see difficulties in harmonising ESG aspects with their business strategy. This is shown by the current study "Steering Sustainably" by KPMG AG Wirtschaftsprüfungsgesellschaft, for which 200 decision-makers from the automotive, manufacturing, transport and logistics and infrastructure sectors were surveyed on ESG activities in their own companies.
According to the survey, for two out of three respondents the compatibility of ESG aspects with the business strategy represents the greatest challenge (67 percent). For companies with a turnover of more than 500 million euros, the figure is as high as 76 percent. 61 percent of all companies also have difficulties managing, monitoring and achieving their ESG goals. One in five companies lacks a structured organisational structure for ESG management.
We are in the midst of a comprehensive transformation of society and the economy, driven by the public demand for more sustainability. Companies are well advised to consistently implement their ESG strategy as a value driver and to report transparently. Most companies have recognised this, but implementation is challenging for them. Not least because of the mandatory regulatory ESG requirements of the EU, they have an urgent need for action.
Lack of available ESG data for holistic governance
Many of the companies surveyed lack key figures for ESG management. One in three companies "rather not" or "not at all" has KPIs for social aspects. 40 percent of the companies surveyed have a set of KPIs for the management of governance aspects; for a further 28 percent this is at least partly true. KPIs for managing environmental aspects are available at 56 percent of the companies surveyed.
Need for action in digitalisation
Companies see another major challenge in collecting and processing ESG data in a uniform manner: A good half access distributed data sources in different formats. More than half of the respondents also lack binding processes for the systematic maintenance and management of ESG data.
Regulation requires data that transparently and consistently demonstrates environmental, social and governance impacts. This increases the pressure on companies to manage their data efficiently. However, legacy systems and outdated IT processes create a lack of clarity that is currently still a major concern for companies.
About the study "Steering Sustainably
For the KPMG study "Steering Sustainably" on ESG Management & Steering, 200 decision-makers from the automotive, manufacturing, transport and logistics and infrastructure sectors were surveyed in the first quarter of 2023 in cooperation with the independent market research institute KANTAR. The study is available for download under this link.
Press contact
Corporate Communication
KPMG AG Wirtschaftsprüfungsgesellschaft
T +49 89 9292-1722
creisbeck@kpmg.com