Key Findings

  • According to a press release issued by KPMG on Monday, only one in five surveyed companies is able toquantify the impact of sustainability initiativeson profits, cash flow, or valuation, and many of these companies also cannot track the specific effects of their ESG programs on EBITDA, capital expenditures (CapEX), or balance sheets.
  • The press release describes a survey of 2,024 C-suite executives and senior business leaders conducted between November 2025 and May 2026, pointing to a gap between companies' awareness of sustainability issues and their financial integration, creating a "blind spot." If not bridged, opportunities may be missed in decision-making, and risks may not be fully incorporated.
  • The report emphasizes: "Although scientific research and target setting have made progress, valuation tools and financial methodologies remain relatively lagging. Sustainability often remains at the level of qualitative discussion or compliance execution, rather than being considered alongside capital allocation, investment evaluation, and strategic risk management."

In-Depth Analysis

This new report comes at a time when U.S. regulations aimed at promoting sustainability have softened. Last month, the U.S. Securities and Exchange Commission (SEC) proposed a rule to formallyrescind the climate risk disclosure rules pushed through in 2024 by former SEC Chair Gary Gensler。

KPMG's report acknowledges that regulation plays a key role in executives' understanding of sustainability. The survey shows that companies outside the United States seem to place more importance on ESG. For example, in South Africa, 67% of companies view sustainability as a key strategic factor; in Germany, it is 58%; while in the United States, it is only 34%.

The report also finds that different industries use varying methods to measure the financial impact and potential returns of sustainability. Across all surveyed industries, only 19% of companies use widely adopted financial valuation models such as digital twins or Monte Carlo simulations when assessing the financial costs and potential benefits of sustainability.

Banking respondents (33%) most frequently adopt such methods, followed by energy and natural resources companies (31%) and automotive companies (27%).

KPMG surveyed companies with annual revenues exceeding $100 million across 19 countries, covering the United States, the European Union, and Asia.