ESG Leaders Double Down on Tech & Boardroom Oversight, KPMG Finds

Key Takeaways

• Tech is the game-changer: Leaders report surging adoption of ESG platforms (+30 pts), dashboards (+27), cloud (+25), and even AI tools (+16 for both traditional and generative).
• Boards are hands-on: 95% of Leader boards identify ESG risks and opportunities, with nearly 9 in 10 monitoring performance and reviewing reporting — far ahead of Beginners.
• Regulatory noise isn’t slowing plans: Despite CSRD uncertainty, 74% of companies say their reporting and assurance strategies remain unchanged, showing strong market-driven momentum.
• Early CSRD reporters see payoffs: Wave 1 firms expect greater market share (60%), profitability (54%), stronger reputation (52%), investor appeal (49%), and reduced costs (49%).
• Maturity gap persists: The average maturity index score sits at 46.8, with most companies stuck mid-journey while Leaders push ahead with purpose-driven acceleration.

Deep Dive

If you want to know where the future of ESG assurance is headed, don’t just look at regulation, look at what the leaders are actually doing. According to KPMG’s ESG Assurance Maturity Index 2025, the companies out in front aren’t waiting for lawmakers to finish arguing over reporting standards. They’re already investing in technology, engaging their boards, and expecting real business payoffs from sustainability assurance.

Among the most advanced companies, the tools of choice are shifting rapidly. Cloud adoption among Leaders has jumped to 83%, while the use of ESG platforms (+30 points) and data dashboards (+27) has exploded in the past three years. Even AI is moving from buzzword to boardroom, with traditional AI use rising by 16 points and generative AI climbing at the same pace.

For companies still in the early stages, the picture looks very different, with spreadsheets, scattered systems, and manual reporting dominating. That gap isn’t just about efficiency, it’s about credibility. Without reliable digital infrastructure, assurance-ready reporting simply doesn’t happen.

Boards Roll Up Their Sleeves

The other big divide is happening at the top. At Leader companies, ESG isn’t something buried in a sustainability office; it’s owned in the boardroom. Nearly every board surveyed (95%) is now involved in identifying ESG risks and opportunities, while close to nine in ten are overseeing actions, monitoring performance, and reviewing reporting.

Beginner companies tell a different story, fewer than two-thirds of their boards take on these responsibilities. The message is that if ESG doesn’t sit on the board’s agenda, it won’t drive the business forward.

Despite the shifting sands of EU rule-making, 74% of companies said their CSRD reporting and assurance plans remain unchanged. That’s not compliance inertia, that’s momentum driven by investors, customers, and markets that expect transparency regardless of political delays.

KPMG calls this “approach with intention”, a recognition that the companies moving fastest aren’t just trying to avoid fines. They see assurance as a way to build stakeholder trust, protect long-term value, and signal leadership in a crowded field.

What’s in It for Early Movers

And the benefits? Companies in the first CSRD reporting wave are already seeing the upside. The top five expectations are:

• Bigger market share and an expanded client base (60%)
• Improved profitability (54%)
• Stronger reputation (52%)
• More attractive to investors (49%)
• Lower costs (49%)

For companies still on the fence, those numbers are a reminder that ESG assurance isn’t just red tape, it’s becoming a competitive lever.

The Index puts the average maturity score at just 46.8, which means most companies are still climbing the hill. But the Leaders are widening the gap, powered by tech adoption, board-level accountability, and a refusal to let regulatory uncertainty slow them down.

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