Verdantix Green Quadrant Benchmark Highlights Leading ESG & Sustainability Assurance Vendors

Verdantix Green Quadrant Benchmark Highlights Leading ESG & Sustainability Assurance Vendors

London, UK. With over 50,000 firms worldwide facing imminent sustainability reporting and assurance deadlines – with a risk of significant penalties for non-compliance – the sustainability assurance market is poised for rapid growth. However, firms looking to capitalize on this demand also face headwinds, including a critical talent shortage, CSRD transposition delays across Europe, and regulatory uncertainty in the US. Given this combination of factors, Verdantix forecasts that the market for ESG assurance services will reach $5.8 billion by 2028.   

Buyers are seeking providers with deep industry-specific expertise, cost-competitive solutions and a strong reputation built on ethics and independence. To scale up to meet growing demand, providers are investing in training programmes to develop their talent pools, and expanding their expertise in essential areas such as water stewardship, biodiversity and human rights. Recognizing the need for a standardized approach, they are developing proprietary methodologies to ensure consistent ESG assurance delivery across different regions.

The inaugural Verdantix Green Quadrant: ESG & Sustainability Assurance Services 2024 report provides CFOs, CSOs, chief risk officers, procurement executives and other C-Suite leaders with essential insights to select the best-fit provider for their requirements. The report delivers in-depth coverage of the 14 most prominent vendors operating in this complex market, and highlights five firms – Deloitte, DNV, EY, KPMG and PwC – which demonstrate the most comprehensive and evolved services.

 Key report findings:

• The rising demand for sustainability assurance, driven by heightened regulatory scrutiny and the integration of ESG factors into core business operations, has expanded stakeholder interest to encompass C-Suite executives and board members. As a result, assurance providers are collaborating with a wider range of functional leaders to ensure comprehensive coverage of sustainability metrics.
• Vendors are harnessing AI as part of the sustainability assurance process to streamline operations and automate workflows. Witness Deloitte’s AI-powered Omnia ESG tool, which automates disclosure roadmaps and tracks regulatory requirements; and KPMG’s use of natural language processing (NLP) and machine learning (ML) to detect potential instances of greenwashing in clients’ reports.
• To address the talent shortage and capitalize on market growth, ESG assurance providers are investing in comprehensive training programmes to upskill their workforces and attract top talent. EY, for example, has implemented technical sustainability education programmes to upskill all employees. PwC has launched a dedicated CSRD Learning & Education Team to develop a bespoke CSRD learning curriculum.
• The scope of assured sustainability metrics is expanding, reflecting a shift towards greater transparency and accountability, and evolving stakeholder expectations. To meet this demand, assurance providers are building specialized expertise in these areas. For example, DNV’s regional Centres of Excellence address specific sustainability challenges in a range of countries.

“With mounting regulatory pressure and heightened public scrutiny of sustainability disclosures, firms are turning to ESG assurance providers to build stakeholder trust, mitigate greenwashing risks and ultimately, ensure long-term business success”, said Lily Turnbull, Senior Analyst at Verdantix. “However, navigating a landscape of complex regulations and talent shortages presents significant challenges. To thrive in this dynamic market, providers must prioritize talent development and technological innovation to effectively scale their operations and meet growing demand.”

To learn more, read the full report here: Green Quadrant: ESG & Sustainability Assurance Services 2024.