In our 2023 Global Advisory Trends survey of over 1000 accountants, we saw that ESG advisory services had been identified strongly as a perceived area of opportunity for the first time.

Overall, 18% of respondents viewed ESG as an area of opportunity, and this percentage remains consistent. Since launching our ESG reporting app, Spotlight Sustain, we have already seen these early innovators look to educate themselves, construct reporting models, and inform customers through powerful data insights. Yes, it is very early days, but the pioneering spirit is strong and of course, early-mover advantage is here and now.

By integrating ESG into financial reporting, risk management, and strategic planning, firms can provide clients with deeper insights into their sustainability performance and compliance requirements. Whether it’s assisting with carbon footprint measurement, ethical supply chain practices, or corporate governance improvements, ESG advisory enhances transparency and helps businesses align with investor and regulatory expectations.

“Like most businesses we are a work in progress when it comes to ESG initiatives, but one of our key principles is to leave our community better than we found it and to take reasonable steps to ‘lean in’ on people and planet-affirming work, transparency and accountability.”

- Richard Francis FCA, CEO & Founder, Spotlight Reporting

ESG Advisory and Revenue Growth

ESG advisory services can be a powerful driver of revenue growth for businesses by enhancing their market positioning, attracting investors, and unlocking new opportunities. Companies that demonstrate strong ESG commitments are more likely to win contracts with large corporations and government entities that prioritise sustainable suppliers. Additionally, consumers are increasingly favouring businesses with ethical and sustainable practices, leading to greater customer loyalty and premium pricing opportunities. By helping clients embed ESG into their business models, accounting firms enable them to differentiate themselves, access new markets, and improve financial performance.

ESG Advisory Opens New Revenue Streams and Deepens Client Relationships

ESG advisory can support revenue growth by improving operational efficiency and reducing costs. Sustainable practices often lead to lower energy consumption, waste reduction, and streamlined supply chains, all of which contribute to healthier profit margins. Investors and lenders also favour businesses with strong ESG strategies, offering them better financing terms and access to sustainability-linked loans. By guiding clients in setting clear ESG goals, measuring their impact, and reporting effectively, accounting firms position themselves for long-term financial success while ensuring compliance with evolving regulations.

An ESG Audit: Understanding Your Clients’ Needs

An ESG discovery audit helps assess a client’s current knowledge, activities, and outcomes related to sustainability. By engaging in meaningful conversations, accountants can develop a comprehensive understanding of their client’s business, identifying key risks and opportunities. Active listening and a nuanced approach allow accountants to determine how ESG fits into an overall business strategy, providing a foundation for tailored advisory services.

ESG Data Collection and Measurement

ESG reporting relies on more than just financial data—it requires extensive non-financial metrics as well. While many businesses are not yet legally required to report ESG metrics, there is growing pressure to demonstrate sustainability efforts. Accountants can help clients develop efficient data collection processes, ensuring accuracy and alignment with stakeholder expectations.

Carbon Accounting: A Growing Compliance Concern

Although carbon accounting is not yet mandatory for most businesses, regulatory frameworks are evolving, and sustainability-conscious companies are seeking robust methodologies to measure their carbon footprint. By advising clients on carbon tracking and reporting, accountants can help businesses set realistic emission reduction targets and improve energy efficiency.

For example, accountants can guide businesses on accurately calculating emissions, identifying cost-saving energy efficiencies, and enhancing their overall sustainability profile. These efforts not only contribute to environmental impact reduction but also enhance a company’s reputation.

How to Get ESG Advisory Services Off the Ground with Spotlight Sustain

To get ESG advisory off the ground you need the right tools to make it easy to produce ESG reports at scale for your clients. This is where Spotlight Sustain comes in. With Spotlight Sustain, accounting firms can easily import client data using a ready-to-use template, then set goals and accurately measure, manage, and report on key ESG metrics. This will be one core aspect of enabling your advisory services to help clients grow and prosper in a sustainable manner.