From large companies to the most powerful economic blocs in the world, one of the most unifying topics is sustainability. Initially, companies focused on sustainability as part of corporate social responsibility (CRS) efforts, but it is now transforming into a mandatory requirement for every company management. Know more about sustainability reporting consultant and ESG reporting consultant.
The bulk of this new demand is arising from stakeholders and regulatory requirements, but we must say that it is not easy for most companies. For managers, entrepreneurs, and leaders, the ultimate path is working with a sustainability reporting consultant.
This post takes a closer look at sustainability reporting to demonstrate why you need to get it right. The report digs deeper to demonstrate the roles of an ESG reporting consultant services and finally outlines the tips you can use to identify the best.
Why You Should Get Sustainability Reporting Right
Before you can set off looking for an ESG consultant, it is important to start by understanding what it is and its applications. Environmental, social, and governance (ESG) is a term used to look at the impacts or risks that a company has on sustainability.
ESG reporting is the disclosure of these impacts, which gives stakeholders a clear outlook of the company’s commitment to making the world a better place for all.
Although ESG reporting is aimed at creating a report for stakeholders, it is, indeed, more than that. The process targets to integrate sustainability into a company or business’s operations, from product development to systems operations.
Indeed, it involves working with all departments and units with the aim of ensuring that the whole company’s systems are sustainable.
Environmental, social and governance (ESG) reporting comes with a long list of benefits, but you will only realize them by implementing it correctly. This is why you should consider working with a sustainability reporting consultant. Here are some of the main benefits to anticipate for adopting ESG reporting in your company, especially with the help of the best consultant.
vestors in Singapore are increasingly considering ESG criteria when making investment decisions, seeking sustainable and ethical opportunities.
- Better support from stakeholders, such as investors in capital markets, partners, potential clients and customers.
- Better compliance with local and international standards, policies, and legislation on GHG gasses emissions, water use, and other sustainability requirements.
- You get the satisfaction of knowing that your business is helping to address global challenges, including global warming, climate change and loss of biodiversity.
- Helps to cut down the cost and risk of operations in companies and increase their profitability. When working with a consultant, he will also be able to avoid the strategies that do not work.
- The consultant comes in handy in helping your company adopt progressive through regular systems review, safety assessment, and economic performance. See, the experts will help to identify every risk on the way and put your company’s performance on a path to rapid improvement for future success.
Know more about what is ESG reporting in our guide.
5 reasons to hire a Sustainability Reporting Consultant
These experts bring a wealth of knowledge in environmental, social, and governance (ESG) matters, guiding businesses to navigate complex reporting frameworks and adhere to global sustainability standards.
Common Roles and Duties of Sustainability Reporting Consultant
The benefits we have highlighted above act as pointers of the roles that ESG reporting consultants play. Here is a closer look at the common ones:
Helping Your Company to Draw an ESG Policy
When your business makes the decision to start the sustainability journey, the first step is drawing an ESG policy. Indeed, this is way more complex than the actions that follow to define sustainability. A sustainability reporting consultant can help you and your business to understand the complex undertaking and craft a guiding outline that advances the organization’s mission and vision.
ESG Reporting Consultants Come in Handy in Drawing a Sustainability Strategy
After drawing an ESG policy, the consultant will go to the next stage and assist you in crafting a strategy to improve the company’s environmental, social and governance (ESG) sustainability rating.
The strategy can provide or define the plan that your company intends to follow to enhance the operating safety of the staff/ team, reduce ESG risks and make the firm more sustainable.
In most cases, the ESG strategy will provide the area of interest, including the goals, and how to achieve them both in the short-term and future. For example, your strategy might include cutting down GHG emissions in line with the UN’s target of achieving zero carbon emissions by 2050 and a disclosure plan.
This might also factor in insights on GHG reduction targets for the respective jurisdiction that the firm is based in.
Other targets for your ESG strategy might be cutting down energy & water use, zero waste, supporting biodiversity regeneration, and promoting social justice. Remember that the strategy should be carefully crafted to fit within your budget. The lovely thing about working with a sustainability or ESG reporting consultant is that there is a way for every company to achieve its goals.
For example, you might be advised by the consulting professional to start by going paperless, treating waste, and shifting to more sustainable energy sources as crucial actions for cutting down carbon footprint.
Helping Your Company to Improve ESG Rating
As stakeholders look at your company’s corporate ESG report to determine its sustainability, there are others who only check the rate. A sustainability reporting consultant can help you to pinpoint reporting topics that can help to improve ESG rating using the company’s data.
Good areas of action to help improve your company’s ESG score include sticking to the ESG reporting principles, making your efforts on sustainability incremental, and encouraging other firms in your supply chain to adopt ESG.
A consultant will also help you to pick and use the right ESG framework or solutions that will impact even the environment and performance of others in the supply chain. The frameworks or guidelines are affiliated with international standards organizations, from the Global Reporting Initiatives (GRI) and the Task-force on Climate-related Financial Disclosures (TCFD).
As companies strive to address the climate-related risks and transition to a net-zero future, consulting firms are actively expanding their expertise in climate risk consulting and sustainability management to meet the rising demand from clients seeking advice on reducing carbon emissions and developing effective strategies for a sustainable future.
How to Identify the Best Sustainability Reporting Consultant
The most important thing that can help you to identify a good sustainability reporting consultant is experience and management. So, ask the consultant to demonstrate recent success cases for work done in your industry for reference.
If the ESG agency of experts has helped other companies in your industry achieve positive development change, you can also anticipate similar levels of success. Other things to check are:
- Affordability of consulting solutions or services for your business. You might want to read the mission and vision of their services on their website.
- Commitment to helping your company to achieve a higher sustainability rating. This should include an assessment of every action selected for ESG reporting to ensure that every impact is noted.
- The consulting agency should have good customer support for its clients to help address any issue along the way and insights into the work in progress. This can also come in handy in helping your team learn more about sustainability.
- Should be licensed to offer ESG sustainability reporting services in your country. So, read the authorization report to learn about their legitimacy in your area.
- The consulting agency should also be able to train your company’s staff or team on ESG reporting, and how to handle data and process it with accuracy.
This post has highlighted some of the benefits that you should anticipate for working with a sustainability reporting consultant. The expert consultant not only simplifies the process of ESG reporting but also puts your company on the path to success.
Contact us, one of the top-rated ESG and sustainability innovation consulting firms, for expert assistance and the best reporting software.