ESG Reporting Readiness

KPMG recently released a Report, following the completion of research into the readiness of Ireland’s 50 leading listed and private companies for compliance with the EU’s incoming ESG reporting requirements. The key findings, relevant to Audit Committee members, indicate that:

• 50% of companies do not clearly describe the role of the board and management in relation to sustainability

Central to embedding sustainability within a business is the holistic integration of sustainability practices into all management and executive levels. Clear governance and management involvement sets the tone throughout a company and puts in place structures of accountability and responsibility. An integrated business model which connects business and sustainability is vital for long-term success.

• Only 4% of companies obtain any external assurance over their sustainability-related indicators

As we move towards, mandatory reporting and assurance over the years ahead, Companies will need to establish or enhance procedures, create, or adapt internal controls and ensure appropriate monitoring and governance is in place in order to meet their obligations under the new sustainability reporting standards. This will be an important area of oversight for Audit Committees. In conjunction with the release of the Report, we held a webinar with sustainability reporting experts, together with leading industry stakeholders, to unpack the key findings from our research and to consider the impact of institutional investors in influencing investment policy, and their increasing demand for enhanced ESG reporting across the value chain, from public to private entities.