Market for assurance on ESG disclosures is burgeoning, but hurdles to perfection remain

The escalating demand for companies to disclose their environmental, social and governance (ESG) actions – and the corresponding increase in greenwashing – has fuelled a need for independent, third-party assurance.

Users of such information, however, need to be aware that the practice is still in its early stages and operating within a macro-environment that is not without its shortcomings. The Business Times (BT) spoke to different stakeholders to glean their views.

Still nascent

KPMG’s study of sustainability reporting trends from 5,200 companies across 52 countries, published in December 2020, found that assurance of sustainability information has now become standard practice for large and mid-cap companies worldwide.