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KPMG Survey Reveals Slow Progress In ESG Data Assurance Readiness

A recent KPMG report reveals that only 29% of companies feel prepared to have their Environmental, Social, and Governance (ESG) data independently assured, a minimal increase from previous surveys. This comes as regulatory deadlines for ESG reporting and assurance approach, particularly in the EU where large companies are expected to begin compliance in 2025.

KPMG’s annual ESG Assurance Maturity Index surveyed 1,000 senior executives across various sectors and regions. It categorises companies into Leaders, Advancers, and Beginners based on their preparedness for ESG data assurance. While there is some progress, with both Leaders and Advancers improving their scores, the gap between these groups and Beginners is widening, highlighting the urgent need for action.

Larry Bradley, Global Head of Audit at KPMG, emphasised the evolving nature of ESG assurance readiness. “Getting ready for ESG assurance is a journey,” he noted, underscoring that companies often realise the increasing complexity of the task as they advance.

Geographical differences were notable, with France leading the scores, followed closely by Germany and Japan. Companies with higher revenues also demonstrated greater preparedness, with those earning over $100 billion achieving significantly higher maturity scores compared to those with lower revenues.

The survey highlighted the benefits of ESG readiness beyond compliance. Companies noted advantages such as greater market share, reduced costs, and new business models. However, the need for skilled personnel remains a significant challenge, with many companies planning to hire externally to meet their ESG goals.

Supply chain management is another critical area, with leading companies imposing stricter ESG requirements on their suppliers. This includes demanding ESG data integration and assurance, although such practices are still in the early stages.

Attacks On Data Centers In UAE And Bahrain Highlight Digital Infrastructure Risks

Recent drone attacks linked to Iran have struck data center facilities in the United Arab Emirates and Bahrain, raising concerns about the vulnerability of digital infrastructure in conflict zones. Facilities operating within the cloud network of Amazon Web Services were among the targets. These incidents highlight how modern conflicts increasingly extend beyond traditional military assets to include critical digital infrastructure.

Critical Infrastructure In The Crosshairs

Iranian drones struck two data centers in the United Arab Emirates on Sunday. A separate strike in Bahrain also affected infrastructure connected to regional cloud operations. The attacks occurred amid escalating tensions following U.S. and Israeli strikes on Iranian targets. Analysts say the incidents demonstrate how data centers are becoming strategic assets in geopolitical conflicts. Patrick J. Murphy, executive director of the geopolitical advisory unit at Hilco Global, said the attacks reflect a broader shift in how infrastructure is viewed in modern security planning. In his view, digital assets now carry strategic importance comparable to energy systems and telecommunications networks.

Industry Response And Strategic Repercussions

Companies operating cloud services in the region responded quickly to the disruptions. Organizations relying on Amazon Web Services infrastructure were advised to move workloads to alternative regions where possible. Major technology providers, including Microsoft and Google, have also reviewed contingency procedures following the incidents. The situation has underscored the importance of redundancy and geographic diversification in cloud infrastructure. Government authorities increasingly classify data centers as critical national infrastructure. Policymakers in the United States, the United Kingdom and the European Union have introduced measures aimed at strengthening the protection of digital assets. Security analysts expect the recent attacks to accelerate efforts to integrate cloud infrastructure into national security planning alongside sectors such as energy, water and telecommunications.

Developments And Industry Reactions

The events also come amid wider debates about the relationship between technology companies and national security policy. In a separate development, the U.S. government recently designated technology company Anthropic as a potential supply chain risk. The company’s chief executive, Dario Amodei, has indicated that the designation could face legal challenge. Technology firms with major operations in the Middle East are reassessing risk management strategies. Expanded multi-region data replication and stronger backup systems form part of these measures, according to Scott Tindall of Hogan Lovells. Meanwhile, comments from OpenAI chief executive Sam Altman have reignited discussion about the growing links between technology companies and government defence programmes.

Looking Ahead

The recent drone strikes illustrate the increasing strategic importance of digital infrastructure in global security dynamics. Data centers are gradually being treated as critical assets within geopolitical conflicts. Continued tensions are likely to prompt additional investment by governments and technology companies in strengthening protection of cloud infrastructure and improving operational resilience across global networks.

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