Esg Assurance Maturity Gap Widens In 2025 Report

ose companies have an average annual revenue of $16.8 billion, the report reports encouraging advancements and alarming maturity lag in the way companies respond to ESG assurance across changing global frameworks.

One of the most important findings of the survey is that only 24% of the companies evaluated scored the "Leader" level for ESG assurance maturity. These companies boast a mean maturity score of 65.2 compared to the mean overall score of 46.9. An alarming 76% of companies are stuck at the early or intermediate levels of developing ESG assurance, which indicates that ambition is high but sustained delivery is a problem by region and industry.

The report arrives at a timely moment, with the initial wave of European Union Corporate Sustainability Reporting Directive (CSRD)-covered companies starting to embrace assurance processes. In spite of regulatory ambiguity, such as the EU's forthcoming Omnibus amendments possibly altering timelines, companies are overall holding on course. Of the 314 companies within the "Wave 1" category of CSRD-covered companies—already reporting and undergoing assurance—74% reported no change from their plans. This underlines a vigorous market-led momentum which appears to outweigh short-term legislative uncertainty.

The KPMG report describes why so many firms are holding firm on their ESG aspirations even in the face of regulatory uncertainty. In CSRD-compliant Wave 1 companies, 60% predict increased market share as a direct consequence of their ESG assurance strategy. Another 54% expect profitability growth and 49% expect improved shareholder value and cost savings. Such numbers support the case that ESG disclosure and audit are more than box-ticking exercises but are instead strategic levers of long-term value creation.

Sustainability is a driver of innovation and long-term value creation, Scott Flynn, Mike Shannon, and Neil Morris explain in the foreword to the report. They share a developing consensus among business leaders that integrating ESG assurance into business strategy holds the key to staying competitive in a more rapidly changing economic and environmental environment.

Regional variation in the index also suggests variation in ESG maturity. North America and Europe are in front, with mean scores of 49.0 and 48.9 respectively. Latin America (39.98) and the Middle East (42.38) are behind, and this shows that, although the ESG trend is international, its uptake is not homogeneous. The variation may perhaps be explained by variation in regulatory pressure, stakeholder expectations, and market maturity.

Company size also comes into play in ESG assurance maturity. Companies with revenues in excess of $10 billion had an average score of 52.8, significantly higher than the 40.4 average for companies with revenues under $1 billion. This indicates that larger organizations can potentially be wealthier in resources and talent to deal with ESG reporting and assurance complexity, but this may not typically hold true for small firms.

The report also testifies to a change in mindset—a move from seeing ESG assurance as a compliance mandate to considering it a strategic imperative. "ESG assurance is not a destination. It is a journey that takes courage, clarity, and commitment," the report quotes, referring to the shifting landscape of sustainability governance.

This mindset shift is called for as companies get ready for future iterations of the CSRD and other compliance initiatives. Credible, third-party-validated ESG data has never been more in demand. Investors, customers, and regulators expect more disclosure and accountability and are forcing companies to implement stringent assurance processes that attest to the validity of their sustainability reports.

To further assist business in changing, KPMG has just introduced the "Clear On Climate Reporting Hub," which provides a suite of tools and resources to enhance the simplicity, consistency, and comparability of climate-related disclosures. It fits within the overall drive toward standardised ESG measures and assurance processes, assisting companies in demystifying the complex reporting regime while fostering stakeholder trust.

As the report obviously shows, the ESG assurance wave cannot be halted. The industry leaders are already witnessing real payback—increased market share, improved financial performance, and greater reputational strength. However, with the overwhelming majority of organizations at early or mid-maturity stages, there is more to be done.

Collectively, KPMG's 2025 ESG Assurance Maturity Index places a new global business in which ESG assurance is transforming from a checkbox ritual into a cornerstone of strategy. Ambitious leadership and unambiguous action by companies ready to change will serve them well to succeed in the next economy powered by sustainability.