Using ESG Sustainability Reporting Consultant: Comparing the Pros and Cons for Your Company

ESG sustainability reporting is the disclosure of a company’s operations to demonstrate that it is responsible. It is an evolution of the concept of sustainability, building on it to ensure that those with greater impact on the planet put focus on promoting its well-being. At this point, you are, perhaps wondering, “what if my company does not have an impact on the environment?” Well, it does because the planet is interconnected, with part environment, corporates, society, and leadership.

The concept of ESG sustainability reporting is emerging as the ultimate solution for our planet. If companies releasing emissions cut them down, pollution is abated, and companies become more profitable, would the world not be a better place? The process of sustainability reporting, however, can be complex, requiring the use of a consultant. Even well-established ventures still find it challenging and it is advisable to bring on board a firm of experts or a professional who is knowledgeable in the area. In this post, we explore the pros and cons of using a sustainability expert.

Pro of Using a Sustainability Reporting Expert

The main advantage of onboarding a professional to your organization is the knowledge and expertise that he will bring. Often, most companies get stuck, wondering where to start or how to progress with sustainability reporting. An expert will easily outline the steps to follow and at what point. Indeed, this might be the perfect way to get started with the process. Thereafter, you will find it pretty easy to do it alone. Here are other pros:

●        Helping You Pick the Correct Framework for ESG Reporting

To increase the credibility of your ESG sustainability report, it is paramount to follow the right framework. Well, there are quite a number and selecting the right one can be a tough call. For example, do you select the Task Force on Climate-Related Financial Disclosures (TCFD) or the Streamlined Energy and Carbon Reporting (SECR)?

You do not have to worry about the framework because the consultant on ESG reporting will select it on your behalf. Having already worked with most of the frameworks, it will be pretty easy to steer your reporting process with the selected framework.

●        Teaching Your Staff on ESG Reporting

It is true that bringing on board an expert can be expensive, but there is a silver lining. You will not need to hire an expert for all reporting seasons. When contracting the expert, make sure to include training as part of the agreement. This means that by the end of the training session, your staff will be empowered to also run the entire process of sustainability reporting. So, you might not need to hire the expert in the coming reporting sessions.

●        Eliminates the Risk of Greenwashing

The biggest danger associated with ESG sustainability reporting is greenwashing. If you opt to do ESG reporting on your own, it is paramount to stick to all the reporting principles. However, getting the principles right, such as materiality and verifiability, is never easy. But you do not have to worry about this when working with expert consultants. They know the loopholes that can make your report labeled greenwashing and will seal them.

Cons of Using a Consultant

The main con of working with a consultant is that it can be expensive. However, this cost only looks high when looked at from the short-term perspective. If you compare it with the benefits that come with ESG reporting, the cost will be negligible.

This post has demonstrated that ESG reporting should be done correctly, and the best way to achieve that is using a consultant. In addition, you will need to get the right software for ESG sustainability reporting. The program, together with the consultant will make the process of ESG reporting easy and enjoyable.