A new survey from US audit, tax, and advisory firm KPMG LLP explores addressing the strategy execution gap in sustainability reporting.
The survey, which collected responses from the US (61 per cent), Europe (25 per cent), Canada and Mexico (12 per cent), Asia Pacific (1 per cent) and South America (1 per cent), found that as reporting requirements ramp up, organisations are set to spend more on ESG in the next three years.
However, while 90 per cent of the 550 companies surveyed planned to increase investment in this space in the coming three years, going toward dedicated ESG personnel (43 per cent), ESG-specific software (40 per cent) and employee training and education (38 per cent), only 33 per cent of companies plan for major restructuring to align sustainability goals with business strategy.
Further, the report found that insufficient resources or capacity to collaborate effectively (44 per cent) and internal silos and limited communication between departments (41 per cent) are the top two impediments to organisations integrating sustainability strategy into broader business goals.
Interestingly, many organisations believe they are ahead of their peers on ESG reporting (83 per cent), yet 47 per cent still use spreadsheets. Only 26 per cent used sustainability reporting platforms, and 37 per cent used specialised ESG software solutions.
Speaking on the results and the trends that emerged, KPMG US Climate Data & Technology Leader Tegan Keele, said: “Artificial intelligence and machine learning technologies can help organizations gain valuable insights from disparate data and make more informed decisions, but AI and ML are not a silver bullet for sustainability reporting or for setting a strategy that adds value to the business.”
Read the full report here.