How to leverage ESG platforms to Modernise Your ESG Consultancy
The demand for sustainability advisory services is booming, with investor and regulators putting pressure on companies to share reports and action around their Environmental, Social and Governance (ESG) impacts.
The sustainability consulting market is projected to grow by 17% a year to $16 billion by 2027, driven by regulatory change and pressure on firms to re-engineer their businesses around sustainability, according to Verdantix research.
Whilst large companies have already bolstered their internal sustainability teams for transitioning into a more sustainable future, millions of small and medium sized enterprises (SMEs) are now also grappling to understand how their companies will be impacted by changing regulatory ESG reporting requirements, how to access accessing sustainable finance-oriented investments and how to best respond to changing stakeholder expectations.
Estimated global value of sustainable investments that are professionally managed.
To respond to the increasing demand for sustainability consultant services, consultancies are seeking tech-enabled solutions to improve the efficiency, accuracy, and transparency of the ESG data collection and ESG reporting process. These technology-based solutions facilitate the operational task of helping clients to collect their ESG credentials, making the process more efficient, accurate and more affordable. Adopting ESG technology not only eases the burden on companies and consultants to identify data, which often sits scattered across various business departments, but it also efficiently centralizes data into a single data repository for future reporting purposes. By using technology platforms to ESG report you can also enhance your client/consultant collaboration whilst generating extra revenue streams leveraging the ESG technology.
“For Consultancies to effectively operate, the use of digital ESG tools has become an integral part of serving their clients at best.”
Furthermore, the adoption of technology by Sustainability consultant, frees up resources to focus on high value adding activities. These include the provision of strategic advice, facilitating robust stakeholder engagement processes, data analysis and prioritization of ESG initiatives, transformation of corporate culture and embedding sustainable value creation through product and services innovation into the core of their client’s business models.
Furthermore, a lot of ESG tech allows the consultants to create their own ESG frameworks, e.g the reporting platform diginexESG. This enables the consultant to also create multiple frameworks for a client which can be used for different departments or timelines, such as quarterly reporting framework, which in turn allows for tracking ESG performance over time and creating a score card of relevant KPIs. This provides a superior service to the client and once the ESG data is digitized, you can more easily update the data and collaborate with your client in the platform.
Seven benefits of tech-enabled sustainability consultancy services:
- Identify ESG topics based on recommendations by framework providers and industry best practices.
- Facilitate the ESG data collection process across business units
- Foster Transparency & Trust, by developing investor- grade ESG metrics that your shareholders can trust
- Track and analysis performance for identifying trends and improvement areas.
- Keep all files organized in a single repository to make the data available to your business throughout the year.
- Increase efficiency in the data collection process
- Lower the cost of the management and reporting of your ESG credentials.
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