The strategic power of ESG assurance

ESG assurance is emerging as a strategic driver of trust, resilience and value creation—moving beyond pure compliance to shape business success. Conor Holland explains how

A laptop with ESG symbol in front of it

Environment, social and governance (ESG) assurance is no longer viewed as a purely regulatory requirement.

The latest research from KPMG reveals that ESG is now increasingly viewed as a strategic lever for building trust, unlocking value and enhancing organisational resilience.

The 2025 KPMG ESG Assurance Maturity Index surveyed 1,320 senior executives and board members globally with ESG reporting and assurance knowledge, including 75 in Ireland.

Amid geopolitical headwinds and a shifting regulatory agenda, the index found the overall readiness score among respondents had dipped marginally, from 47.7 to 46.9 in the two years since the publication of the inaugural index in 2023.

Even now, however, 76 percent of businesses remain in the early- or mid-stage of ESG maturity. In response, businesses need to act fast.

Our clients consistently tell us ESG assurance plays a critical role in the overall integrity of their sustainability reporting and it is often perceived as a value driver.

Those corporations that will soon be subject to mandatory assurance should take steps to prepare for this new regulatory regime.

A strategic lever for growth

Our data shows that those Corporate Sustainability Reporting Directive (CSRD) Wave 1 companies embracing ESG assurance are already seeing measurable returns:

  • 60 percent expect a greater market share or an expanded client base.
  • 54 percent anticipate improved profitability.
  • 52 percent foresee stronger reputations.
  • Almost half expect greater shareholder value and reduced costs.

Despite regulatory ambiguity, 74 percent of companies say their sustainability reporting plans under the CSRD remain unchanged—signalling strong market-driven momentum, not just mandates.

The data confirms what we have long believed: ESG assurance is not just about compliance, it’s about creating long-term value.

Organisations must approach reporting and assurance with the intention of strengthening stakeholder trust through proportionate action.

Learning from the leaders

To help organisations move along the maturity curve, we recommend five key actions:

  1. Strengthen governance: Embed ESG oversight at board level, ensuring accountability for identifying risks, performance monitoring and reporting.
  2. Build necessary skills and capabilities: Invest in internal expertise to interpret standards, manage data and engage effectively with assurance providers.
  3. Enhance data management systems: Develop robust systems to collect, validate and report ESG metrics that meet assurance-grade requirements.
  4. Adopt digital technologies: Leverage ESG platforms, dashboards and artificial intelligence (AI) tools to streamline reporting and improve data quality.
  5. Engage the value chain: Extend ESG practices to suppliers and partners to ensure consistency and credibility across disclosures.

Conor Holland is Partner and Head of ESG Assurance at KPMG