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KPMG Survey Reveals Slow Progress In ESG Data Assurance Readiness

by THEFUTURE.TEAM

June 25, 2024

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.

Illegal Employment on the Rise in Cyprus as Undeclared Work Declines

by THEFUTURE.TEAM

September 16, 2024

A recent report on the labour market in Cyprus has revealed a worrying increase in illegal employment, even as the rate of undeclared work shows signs of decline. The findings, which were discussed during a parliamentary session, have raised concerns among lawmakers and authorities alike about the ongoing challenges in combating labour exploitation and maintaining fair employment practices.

According to data presented by the Ministry of Labour, the issue of illegal employment—workers being hired without proper work permits or contracts—has escalated in recent months. This rise comes at a time when efforts to reduce undeclared work, where employees are not registered or insured, have seen moderate success. Despite progress in regulating the labour market, illegal employment remains a significant issue, especially in industries such as construction, agriculture, and hospitality.

Understanding the Distinction Between Illegal and Undeclared Employment

Illegal employment refers to the hiring of individuals who are not legally permitted to work, often due to their immigration status or lack of proper documentation. These workers are typically vulnerable to exploitation, receiving lower wages and lacking access to basic protections such as healthcare and social security benefits. In contrast, undeclared work involves the employment of individuals who may be legally allowed to work but are not officially registered, depriving them of insurance coverage and other legal protections.

While authorities have made strides in reducing undeclared work, particularly through stricter inspections and penalties, the rise in illegal employment presents a new challenge. Lawmakers pointed out that illegal employment poses even greater risks, as it not only harms the workers involved but also undermines the integrity of the labour market and contributes to unfair competition among businesses.

Factors Driving Illegal Employment

Several factors contribute to the increase in illegal employment, according to the Ministry of Labour. One key driver is the influx of migrant workers, many of whom lack the necessary documentation to work legally in Cyprus. Without proper channels for legal employment, these individuals often turn to unregulated jobs where they are vulnerable to exploitation.

The growing demand for cheap labour, particularly in sectors like construction and agriculture, also plays a significant role. Employers seeking to cut costs may resort to hiring illegal workers, bypassing the legal requirements for contracts, wages, and benefits. This practice not only puts workers at risk but also creates an uneven playing field, where businesses that comply with legal standards struggle to compete with those exploiting illegal labour.

Efforts to Combat Illegal Employment

In response to these findings, the government has pledged to intensify its efforts to combat illegal employment. This includes increasing inspections, imposing harsher penalties on employers found guilty of hiring illegal workers, and strengthening collaboration with immigration authorities. Additionally, there is a push to create more pathways for legal employment for migrant workers, ensuring they can enter the labour market with proper documentation and protections.