When Should Companies Consider Working with ESG Consulting Firms?

July 29, 2022

When Should Companies Consider Working with ESG Consulting Firms?

Every time we look at the news headlines, what strikes our eyes first are reports of distress, such as the threats from global warming and loss of biological diversity. In June this year (2022), Inia Seruiratu, the Defence Minister of Fiji, said that the greatest threat today is climate change, not machine guns and fighter jets. The bigger danger of global warming is that it is worsening, with most strategies that have been adopted so far, including the Kyoto Protocol, yielding little. 

However, there is one last option, and all stakeholders have taken note: ESG sustainability. ESG (environmental, social, and governance) is an approach for measuring to what extent that companies work to advance sustainable, responsible and ethical operations.

Benefits of Using the ESG Consulting Firms

ESG consulting is the process of seeking the services of a third-party firm to help in drawing and implementing sustainability-related strategies. The top consultancies are made of experts in sustainability and ready to hold your hand in the ESG sustainability journey. Working with the experts comes with a number of benefits, including: 

  • You are assisted in grasping the core concept of ESG and sustainability more effectively. 
  • ESG consulting firms specialise in sustainability matters. This means that they are always on top of the latest ESG policies, strategy, and expected impact,  both locally and globally. 
  • Implementing sustainability reporting strategies in your company is made easy. 
  • ESG consulting services gives you the assurance that sustainability reporting and all related activities will be implemented in line with the latest policies and best practices across the globe. 
  • The experts can help to train your staff on matters of business or corporate sustainability
  • Provides the satisfaction of knowing you are part of initiatives helping to address problems facing the planet today. For example, what actions should a business’s management take to help address the global threats?

When to Go for Help From an ESG Consulting Firm

For most companies, the idea of working with ESG consulting firms is awesome, but one question remains, "when?" Here are five instances when you should go for the assistance of a consulting firm. 

  • Your Firm is New to ESG Sustainability

We must say that driving sustainability in companies is never easy, especially if your firm is new in the area. Where do you even start? However, you do not have to worry about this anymore because ESG consulting firms can help. The professionals in these firms have been in the industry and understand every bit of ESG sustainability mechanics. 

For most companies, initiating the process of ESG sustainability reporting and tracking the data during the reporting phase is a complex process. Experts in ESG and sustainability matters will help you to carry out a comprehensive review of your company to identify the main challenges and opportunities. Further, they will assist you in drawing a plan and implementing it to achieve the main sustainability goals. 

  • You Are Busy with Other Core Tasks of the Company 

Like other corporate activities, sustainability requires a lot of focus, time, and strategizing. Often, you have to go out of the way to set the strategy on course, but rarely do executives have this time. Trying to direct more focus on ESG and sustainability for some managers means deviating from the core business activities. This is why a separate consultancy should be brought on board to handle sustainability matters. 

As the experts in the consultancy pick the reporting topics and set off the ball rolling in the sustainability groove, you can maintain focus on the areas that optimise revenue. Indeed, the experts will also help to support all other activities that need the leverage of sustainability consideration. For example, the goals for cutting down carbon footprint and achieving carbon neutral status can help to strengthen the brand online. So, you can rest assured of getting more by working with experts. 

  • When Scaling Operations of Your Company 

Is your company targeting or in the process of scaling operations in offshore jurisdictions, such as Hong Kong and the UK? Well, most of these offshore nations have stringent rules on matters of sustainability. For example, the UK has indicated it is going to make the use of the Task-force on Climate-related Financial Disclosures (TCFD) mandatory for all companies. This can be pretty complex to comply with while trying to adhere to all rules of operating in the new country. 

With ESG consulting firms, compliance with all laws when scaling operations is pretty easy. Because they are experts in sustainability, you will be assisted to come up with the right strategies for compliance. The experts will also come in handy in helping your firm outshine others on the market. Well, this might be one of the methods to help your company grow faster and reach the targeted success fast. 

  • To Overcome the Tag “Greenwashed” and Improve Your ESG Score 

As we indicated already, the process of ESG sustainability reporting is never easy, and it is not uncommon to get some reports labelled greenwashed. This, in most cases, means presenting information that is incorrect or not verifiable to investors and clients. Greenwashing is dangerous because it can easily pull down your ESG score with a big margin. The best way out of such a challenge is to bring on board ESG consulting firms. 

A firm of experts will be able to review and identify where you went wrong. Then, it will help to craft a clear strategy for a reporting model that will win the hearts of all stakeholders. For example, most companies fail in selecting the right ESG reporting framework, identifying the reporting topics, and data analysis. Experts in ESG will help you to take an overview of the entire process of ESG reporting to ensure you get it right. 

Now, to the last question: "Which are the best ESG consulting firms?” To identify a good firm, ensure to check for commitment to helping clients, the success rate with past tasks, and its experts. One of the most outstanding firms is Diginex.com. 

At Diginex.com, we have some of the best experts in ESG matters and they are ready to assist you. We also have some of the best sustainability programs that you can employ for success. For example, diginexESG allows you to stay focused and prepare high-quality ESG reports faster. Note that it works with companies and businesses of all sizes. Other apps include diginexLUMEN and diginexCLIMATE. 

Contact us now to learn more about ESG sustainability for your company and get all the assistance needed for compliance and success. 

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