Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • 2024 P/C Combined Ratio Best in More Than a Decade
  • Judge Backs 17% State Farm Rate Hike in California
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

Three-Quarters of Firms Globally Are Not Ready for New ESG Rules: KPMG Report

September 26, 2023
Email This Subscribe to Newsletter
  • Article
  • 2 Comments

Three-quarters of companies globally are not ready to have their environmental, social and governance (ESG) data audited externally months before new regulations kick in, according to a new report from KPMG published on Tuesday.

Stricter European Union, U.S. and global rules are being introduced, mostly in time for the 2024 reporting season, to replace a patchwork of voluntary private sector practices for listed companies to make climate-related disclosures.

Regulators say external auditing of sustainability-related data – while not as extensive as financial auditing – is crucial for giving investors information free of misleading environmental claims, known as greenwashing.

The EU rules will require disclosures be audited while countries adopting the International Sustainability Standards Board’s reporting requirements can also demand external checking.

Yet of 750 companies surveyed by KPMG, only 25% feel they are sufficiently prepared.

“Being ESG assurance ready means identifying the relevant regulatory framework and having the right metrics with robust systems, processes, controls and governance for collecting and managing the data,” said Larry Bradley, KPMG’s Global Head of Audit.

KPMG’s ESG Assurance Maturity Index assessed the views of executives and board members across industries, regions and different firm sizes to measure companies preparedness.

Just over half of companies surveyed currently get some level of external auditing of their ESG disclosures, but of those only 14% are obtaining reasonable assurance and 16% limited assurance for all of their ESG disclosures as new rules will require, according to KPMG’s research.

“Now there will be regulatory and assurance requirements to report accurate information, which raises the bar on controls and processes as well as qualitative statements that will need to be made around the data,” Mike Shannon, Global Head of ESG Assurance at KPMG, said.

Larger companies are better prepared for auditing than smaller firms, KPMG found, while among countries France, Japan and the United States came out on top, with Brazil and China ranked worst.

(Reporting by Tommy Reggiori Wilkes)

Copyright 2025 Reuters. Click for restrictions.

Topics Numbers

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Q1 Shows ‘Clear’ Signs of Commercial P/C Softening, Says CIAB
Despite Backlash From Trump, DEI Hasn’t Disappeared at US Companies
Fire Destroys Mansion on a Former Louisiana Sugar Plantation
2024 P/C Insurance Combined Ratio Best in More Than a Decade

Interested in Numbers?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: International & Reinsurance News, National NewsTopics: climate reporting, environmental social and governance (ESG) criteria, greenwashing, KPMG, Research and Trends
  • Have a hot lead? Email us at newsdesk@insurancejournal.com

Featured Comment

  • September 26, 2023 at 12:27 pm
    Tiger88 says:
    Like or Dislike:
    Thumb up 5
    Thumb down 4

    Not ready for ESG or they, like most of us, think it’s a joke?

Latest Comments

  • September 26, 2023 at 1:37 pm
    Reality Check says:
    CommieCore Math will work this wat ESG + DEI = DIE How to ruin industries.
  • September 26, 2023 at 12:27 pm
    Tiger88 says:
    Not ready for ESG or they, like most of us, think it's a joke?

Add a CommentSee All Comments (2)Add a Comment Cancel reply

Your email address will not be published. Required fields are marked *

*

*

More News
Boost Prices or Retreat? How Carriers Improved Homeowners Books in 2024
Radio Calls for Help Sent 45 Seconds Before Mexican Ship Hit Brooklyn Bridge
Marks & Spencer Says Cyberattack to Cost £300 Million
Thoma Bravo’s Nearmap to Buy Insurance Tech Firm Itel for Over $1.3B
More News Features

Read This Next

  • Three-Quarters of Firms Globally Are Not Ready for New ESG Rules: KPMG Report
  • Boost Prices or Retreat? How Carriers Improved Homeowners Books in 2024
  • Brett Favre's Defamation Suit Against State Auditor Can Move Forward, Court Says
  • Three Workers Killed in Scaffold Collapse at LNG Plant in Texas
  • Ice Cream Sandwich Maker Blames Agent for Lack of Recall Insurance After $4.5M Loss

Insurance Jobs

  • Account Manager – Captive Management - Burlington, VT
  • Outside Property Contents Claim Representative Trainee (Bay Area) - Walnut Creek, CA
  • Director Pharmacy Consulting - New York, NY
  • Property and Casualty Actuarial Director (Actuary III): DORA/Division of Insurance Hybrid - Denver, CO
  • Licensed Inside Sales Representative (Remote – Home Based Work) - Orlando, FL
MyNewMarkets
  • 5 Ways to Prepare for Healthcare Liability Changes in 2025
  • What's Next For Workers' Comp?
  • Soft D&O Market May Come to an End as Risk Complexities Rise
  • Exclusions: Active Assailant Coverage - Oh My!
  • 10 Things to Know About Insuring Boats & Marinas
Claims Journal
  • APCIA Says Record Shows 'Minimal Complaints' on Hurricane Milton, Helene Claims
  • Mitchell: Claims Frequency of Battery Electric Vehicles up as Sales Face Tariff Threat
  • Fire on Chevron Oil Platform Offshore Angola Injures 17
  • AF Group Claims Exec Embracing AI, But He Won't Measure Success by Replacing People
  • Trump Plans to Merge Wildland Firefighting Efforts into One Agency, But Ex-Officials Warn of Chaos
Academy of Insurance education
  • May 22 Commercial Property: Five Bombs and How to Defuse Them
  • June 5 E&O and Hard Markets: How Trying to Keep a Client Might Cause Trouble
  • June 12 Rating AI Tools: Balancing Functionality and Security
  • June 19 Can You Hear Me? Yes, I Am Listening!

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map