Around half of firms are facing obstacles reporting on their environmental, social and governance (ESG) performance, research has found.

Obstacles include complexity of reporting ESG performance and lack of data from suppliers, according to the research by professional services firm KPMG.

It found that that just over half of companies are citing complexity as a challenge, while almost half faced “inadequate supplier ESG performance data”.

More than half struggled to access information from within their company.

“The increasing complexity of reporting and the changing regulations pose significant challenges to companies,” states KPMG’s research.

It adds that the research shows the need to improve ESG supplier and internal data collection processes.

Firms are facing increasing pressures over reporting ESG performance, KPMG also found.

Almost three in four say they are facing regulatory pressure and almost three in five report receiving pressure from the financial markets, institutional and individual investors and asset managers.

Among business leaders surveyed seven in ten expected to see improved profitability by having their ESG independently assured. This is being obtained by more than four in five FTSE 100 companies.

“Independently assured ESG disclosures help give credibility over the steps companies are taking to improve their ESG performance to customers, employees, investors, fnancial markets and communities,” states KPMG’s report.

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