KPMG Survey Highlights The Need For Established ESG Software Systems

Summary:

The KPMG US survey reveals that almost half of large companies still use spreadsheets for ESG data management despite an increased focus on ESG reporting. The survey of 550 executives shows that 90% plan to boost ESG investments in areas like dedicated personnel, specialized software, and training. However, there's a significant gap between perceived ESG reporting capabilities and actual readiness, with 47% relying on spreadsheets. Companies express a commitment to improvement, including the use of artificial intelligence and machine learning for data analysis. This article emphasizes the need for a broader sustainability strategy and strategic investments to effectively communicate sustainability values to the business.

Overview: 

The article discusses the findings of a survey conducted by KPMG US, revealing that despite increasing focus on Environmental, Social, and Governance (ESG) data and reporting capabilities among large companies, nearly half of them still use spreadsheets to manage their ESG data. The survey, which involved 550 board members, executives, and managers at public and private companies, highlights that 90% of respondents plan to increase investments in ESG over the next three years, with top areas being dedicated ESG personnel, ESG-specific software, employee training, and data collection tools.

However, there is a notable gap between companies' perceived ESG reporting capabilities and their actual preparedness. While 83% believe their organizations are ahead in sustainability reporting, many still rely on manual data collection, with spreadsheets being the top ESG data management system at 47%. The survey indicates a commitment to improving ESG reporting capabilities, with plans to enhance data analysis using artificial intelligence and machine learning. Companies also view building ESG capabilities as crucial for organizational performance, with 45% considering it the top way to integrate sustainability goals with overall business objectives.

Challenges identified include insufficient resources for collaboration, difficulty measuring the return on investment for ESG activities, and budget constraints. To address these challenges, respondents anticipate organizational restructuring to align sustainability goals with overall business strategy. The article emphasizes the importance of organizations viewing new reporting requirements as an expansion of their broader sustainability strategy and investing in the right people and technology to communicate the full value of sustainability initiatives to their business.