The growing concern about climate change and sustainability has accelerated the development of ESG practices in corporations. As more laws on sustainability, such as Taxonomy hit the market and stakeholders emphasise working only with responsible brands, your organisation has to make the right decision and effectively manage ESG impacts. However, some companies are not ready to or find implementing ESG a big challenge. Fortunately, ESG consulting for corporate clients is making a positive change by helping businesses to understand sustainability, its application, and reducing negative impacts.
The ESG and sustainability consulting market is predicted to grow by 17% from 2022-2027. By 2027, the global market for ESG consultancy is expected to reach USD16 billion. Keep reading as we explain everything you need to know about ESG consulting for corporate clients.
What is ESG Consulting?
Environmental, social, and governance (ESG) cover the strategies and models that companies use to align their operations with the growing demand for sustainability. The interest by companies has risen over the years, ushering in a series of positive impacts not just for the respective companies but also for their partners, communities, and the entire planet. About 89% of business executives indicate that adopting ESG helps them win a competitive advantage in the market.
Operating sustainably can also help your company to cut down the cost of production and get more support from investors. But even with these notable benefits, many companies struggle with ESG policy formulation and reporting. As a result, concerns have been raised about the rising problem of greenwashing.
Environmental, social and governance (ESG) consulting for corporate clients comes as a reliable solution for guiding companies in planning and correctly implementing ESG strategies. The agencies are run by professionals who understand the process of ESG implementation and help companies to maximise the benefits that come from making their operations sustainable.
Roles of ESG Consulting for Corporate Clients
So, what can ESG consultants do for your company or corporate clients? Below are some of the main responsibilities and duties of ESG consultants and how they add value to your enterprise:
- Preparing ESG Policy
For a company to operate sustainably, it needs to have a clear ESG policy. This is a clearly defined outline to guide a company’s sustainability efforts. An agency can help your company to review its operations and craft the best guidelines to ensure all the goals for sustainability are achieved. For example, the policy might set guidelines for zero-waste and zero-carbon emissions from all the units of the company or business.
- Performing ESG Risk Analysis
ESG consultants can help advise you on the risk issues and how they should be addressed. In many cases, managers only focus on the positive impacts of ESG, such as cutting down emissions to address climate change, but this does not give the true outlook of the company to stakeholders. ESG consulting for corporate clients helps to change this by ensuring that all impacts, including the negative ones, are highlighted.
- ESG Reporting
One of the crucial tasks of an ESG process is communication to stakeholders. Because ESG reporting is a process that involves a lot of planning, data gathering, and analysis, most companies find it pretty challenging. An ESG consultant can help you to understand the entire process of disclosure, from company assessment and materiality assessment to publishing of the ESG report. Next, they will work with your corporate team to craft a good strategy for ESG reporting and develop management insights for reducing sustainability risks.
A good ESG consultancy can also come in handy in helping you to optimise the benefits of your ESG reports. For example, you can use the ESG report and ESG rating to drive the marketing of your company. This might be all you need to win a bigger market and profits.
The Best ESG Consulting for Corporate Clients
If you are new to ESG consulting, picking the right firm can be a major challenge. Here are some useful tips to help you identify the best ESG consultancy for your business:
- Start by deciding what your business wants to prioritise. This will be very helpful for the consultant to set the right ESG goal for your company.
- Identify an agency with experience in your industry. Today, some consultancies only work with specific industries to guarantee better results. For example, there are some firms that specialise in energy, hospitality, or financial industry, among other areas, with a focus on sustainability. Even with the agencies that focus on your niche, it is still critical to carry out due diligence and pick the best performer.
- Commitment to customer value. The only consultancy for corporate clients that can deliver results is the one that is committed to delivering value. Before signing the contractual agreement, talk with the management of the agency to gauge its commitment to delivering value. For example, does it delegate the best ESG professionals, software, and resources?
ESG consulting for corporate clients is driven by the rapidly changing ESG regulations, demand for sustainability integration with business strategies, and targets for net-zero carbon emissions. The good thing about agency services is that they can be the link your firm needs to grow and reach the targeted results. Contact Diginex.com, one of the top-rated consultancies, for ESG management apps and expert assistance on matters of sustainability.