Producing reliable and consistent ESG information requires an enterprise-wide approach.
Corporate America faces growing pressure to anticipate and measure environmental, social and governance (ESG) risks and opportunities.
New and pending regulations from the US Securities and Exchange Commission (SEC) and the European Securities and Markets Authorities (ESMA) may impose penalties on companies that fail to disclose this data and have it assured by a third party.
Unfortunately, many companies aren’t ready for this shift. In a 2022 study of 300 US companies commissioned by KPMG, fewer than 15% of respondents said their ESG reporting had attained maturity in compliance, data controls, risk analysis and oversight.
The crux of the issue is a lack of integration of sustainability teams and the rest of the business. The goal is not simply a compliance exercise—to tick the boxes—but also to add or enhance value. That requires the ESG function to be integrated into strategy. And implementing strategy requires the entire enterprise.
ESG Audit Leader, Audit, KPMG US
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