Sustainability / ESG Consulting

Service description

Sustainability or ESG consulting helps a business measure its environmental and social impact and report it credibly. A provider typically sets up greenhouse gas accounting, identifies which topics matter most to customers and regulators, and builds a reporting program. The work can range from a first emissions inventory to preparing disclosures that follow a recognized framework.

Common industries

Applies to any industry, most often companies that sell to large enterprises.

ROI

Meets rising enterprise-customer and regulatory demands and reduces reputational risk; standards are still maturing.

Benefit

Build a sustainability/ESG program — strategy, measurement, and reporting — to meet customer and regulatory expectations.

Why get it

Large customers, lenders and some regulators now ask suppliers for emissions data and sustainability disclosures. A structured program lets the business answer consistently instead of responding to each request from scratch, and shows which requirements actually apply to it.

When you benefit

Often an initial build, then repeated each reporting year as data is refreshed and disclosures are updated.

What it costs

Typically a project fee.

When you pay

Providers usually charge a fixed fee for a defined deliverable such as an emissions inventory or a disclosure report, and hourly or retainer fees for ongoing support. Price depends on the number of locations, how much data already exists and the frameworks used.

Other costs

Internal staff time to gather energy, travel and purchasing data, data-collection software, and third-party assurance if a disclosure requires it.

Risks to know

Standards and disclosure laws are still changing, so a program built for one framework may need rework. Claims that are not backed by data can create legal and reputational exposure. Where a law requires emissions reporting, incomplete data or a missed deadline can bring consequences.

When risks arise

Problems tend to surface when a customer, lender or regulator reviews a disclosure, or when a reporting deadline arrives. Gaps in data are easiest to fix early in a reporting year.

The process

The provider reviews which requirements and customer requests apply, sets the scope of the inventory and gathers data. It calculates emissions, identifies gaps and priorities, and drafts the strategy and any disclosures. The business reviews the drafts before anything is published or sent.

Your commitment

The business names an internal owner and gives the provider energy, fuel, travel, purchasing and facility data, plus any customer questionnaires or disclosure requests it has received. Management confirms which standards or requirements it must meet.

Documents to gather

• Utility bills and fuel records for each facility
• Business travel and commuting records
• Purchasing and supplier spend data
• Customer sustainability questionnaires or supplier codes of conduct

Helpful reading

• Corporate Standard — GHG Protocol (World Resources Institute and WBCSD)
• EPA Center for Corporate Climate Leadership — U.S. Environmental Protection Agency
• International Sustainability Standards Board — IFRS Foundation

Further research

• California Senate Bill 253, Climate Corporate Data Accountability Act — emissions reporting for large companies doing business in California (California)