Most Companies Still Struggle to Quantify Impact of Sustainability Risks and Opportunities: KPMG Survey

A KPMG survey named Closing the Sustainability Valuation Gap polled over 2,000 senior managers from 19 countries at firms with annual revenue above $100 million. 72% of these managers fully know their companies’ sustainability plans, 60% include sustainability risks and chances in financial planning, and half make sustainability a core part of business strategies. However, only 19% use standard financial tools like digital twins and Monte Carlo simulations to measure how sustainability affects business value and performance. Banking, energy and auto industries perform better here at 33%, 31% and 31% respectively, as sustainability issues hit their finances more directly. This big gap between sustainability awareness and financial measurement exists because there are no complete, unified tools and frameworks to link sustainability results to financial data, and current calculation methods are scattered and inconsistent. This flaw may make firms misjudge investment costs and chances, failing to spot risks and value-adding opportunities. KPMG’s experts say businesses should build such measurement tools actively to secure long-term value and competitive edges.

Source:https://www.esgtoday.com/majority-of-companies-still-struggle-to-quantify-impact-of-sustainability-risks-and-opportunities-kpmg-survey/