Why knowing your ESG maturity is more important than ever

The Sustainability, Environmental, Social, and Governance (ESG) landscape is constantly changing, and companies at all levels of maturity face unique challenges and opportunities. With ESG factors becoming increasingly important to regulators, investors, customers, employees, and other stakeholders, knowing your organisation’s sustainability/ESG maturity level, is crucial for setting, or updating, your path forward, and determining your next move.

Maybe your company has been working on some waste reduction initiatives, dabbling in diversity programs and thinking about your carbon footprint. But how do you know if you’re actually making progress? That’s where assessing your organisation’s sustainability/ESG maturity comes in.

If you haven’t done it yet, now’s the time. Understanding your maturity level is like taking the pulse of your organisation’s sustainability efforts. It helps you to see where you stand, what you’re doing right, and where you need to improve. With increasing demands for accountability from businesses, understanding where you are on your sustainability/ESG journey isn’t just a good idea—it’s crucial.

What does ESG maturity even mean?

ESG maturity is a measure of how developed your organisation is when it comes to sustainability or ESG practices. Are you just getting started, or are you leading the charge in your industry? It’s kind of like evaluating your fitness level—are you just doing a few stretches now and then, or are you running marathons and crushing your goals?

Think of sustainability/ESG maturity as a spectrum. On one end, you’ve got companies that are just starting to think about ESG, maybe recycling in the office or publishing their first sustainability report. On the other end, you’ve got organisations with fully integrated ESG strategies—where sustainability, diversity, and governance practices are woven into strategy and every business decision. Most companies fall somewhere in between.

Five reasons why knowing your ESG maturity matters

A comprehensive maturity assessment provides a broad picture of the company’s sustainability progress. It helps you to understand ESG trends and drivers that could impact your business, and how your business compares with direct peers.

It’s a good reality check

It’s easy to feel good about the occasional green initiative or diversity training session. But if you’re not assessing your overall sustainability or ESG maturity, you might miss the bigger picture. A full assessment will help you understand where you truly stand—not just in your own eyes but compared to your competitors, investors’ expectations, and regulatory standards.

Without a robust assessment, you could be operating under the illusion that you’re ahead of the game, when you’re really just scratching the surface. Getting that clear, honest picture of where you are will help you make more informed decisions about what needs to change or improve.

Growing stakeholder expectations

Sustainability/ESG is a key factor that investors are using to decide where to put their money and customers are using to make purchase decisions. If you can show your organisation has a mature and well-developed ESG/sustainability strategy, you’ll be more attractive to investors, employees, and customers. They want to see that you’re not just talking the talk but walking the walk—and a maturity assessment can help you prove that.

On the flip side, if your ESG efforts are still in the early stages, knowing that allows you to be transparent with investors and show that you’ve got a plan to improve. This kind of transparency can build trust and work in your favour, showing you’re committed to heading in the right direction.

It helps you prioritise

No company can tackle every ESG issue at once, especially if you’re just starting out. By assessing your maturity, you can identify which areas need the most attention and which quick wins might have the biggest impact. Maybe you’re already kicking goals with your environmental policies but lagging in governance or social issues. Or maybe you’ve got strong diversity initiatives but haven’t yet tackled carbon emissions or supply chain transparency.

Knowing where you’re strong and where you can improve helps you focus your efforts on what matters most. Plus, a clear understanding of your maturity level allows you to set realistic, measurable goals and build a roadmap for improvement.

Keeps you aligned with regulations

Regulatory pressure around ESG is ramping up.  The recently introduced mandatory climate-related financial disclosures legislation and the release of the new Australian Sustainability Reporting Standards (ASRS) by the Australian Accounting Standards Board (AASB) will impact a large cohort of Australian businesses.  Assessing your ESG maturity ensures that you’re not caught off guard by these regulations. You’ll have a clear understanding of where you meet or exceed regulatory expectations—and where you might need to step up your game to avoid penalties or reputational damage.

The bottom line? The more mature your ESG practices are, the less likely you are to be blindsided by regulatory changes. You’ll be ahead of the curve, not scrambling to catch up.

It’s a tool for engagement

Assessing your ESG maturity doesn’t just help you internally; it’s also a great way to engage with stakeholders. When you’re transparent about where you stand and where you want to go, it builds trust. Employees want to know that they’re working for a company that’s genuinely committed to sustainability and social responsibility, not just paying lip service to it.

The same goes for customers and partners. Showing that you’re actively working to improve your ESG efforts—backed by data from a maturity assessment—gives you credibility. It demonstrates that you’re not just following trends but are dedicated to long-term progress.

How do you assess ESG maturity?

You might be wondering how exactly you go about assessing your ESG maturity. While a simple questionnaire can give you a rough idea, undertaking a robust assessment process will give you a detailed, unbiased picture of where you stand. This is usually done through a combination of self-assessments, stakeholder feedback, and benchmarks against industry standards.

The assessment looks at different areas—like environmental impact, social responsibility, and governance structures—and grades you on how well integrated these elements are into your overall business strategy. Are these things an afterthought, or are they front and centre in decision-making?

What comes after the assessment?

Once you’ve got a handle on your ESG maturity, it’s all about action. The assessment should help you pinpoint where you need to improve and guide you in setting specific, measurable goals. It’s not just about finding out where you’re lagging; it’s about using that information to build a stronger, more resilient business that’s ready to meet future challenges.

From there, you can create a sustainability/ESG roadmap—whether that means enhancing environmental efforts, improving social impact, or tightening governance practices. And remember, sustainability is an ongoing journey. Regular assessments will help you track your progress and make sure you’re staying on the right path as your business and the world around you evolve.

Knowing your organisation’s ESG maturity level, is crucial for setting, or updating, your path forward, and determining your next move. So, if you haven’t done it yet, now’s the time to get serious about assessing where your organisation stands on the sustainability maturity spectrum. It’s the first step in moving from talk to action.

Connect with our Senior Sustainability Consultant, Robyn Kozera today.