Responses illuminate the level of preparation still needed by many enterprises to comply with the anticipated U.S. Securities and Exchange Commission ESG rules.
LOS ANGELES–(BUSINESS WIRE)–AuditBoard, the leading cloud-based platform transforming audit, risk, ESG, and compliance management, today announced the release of their 2023 ESG Maturity Benchmarking Report: Accelerating ESG Transformation. The report found that two-thirds of organizations have not implemented ESG controls, and that 60% do not currently perform internal ESG audits. This lack of ESG program readiness puts organizations at risk of incurring potential financial penalties due to non-compliance with future regulations, including the forthcoming ESG rules from the Securities and Exchange Commission (SEC).
The report, which is based on the results of a survey of more than 200 audit, risk, and compliance professionals involved in ESG management, also indicates that some organizations are more advanced than others in their ESG program readiness. For example, over 75% of respondents said they currently collect evidence for ESG metrics, and 26% reported that they plan to begin performing internal ESG audits in the next year. In addition, 61% reported having a dedicated ESG team or committee with representatives from audit, compliance, legal, and/or risk management.