ESG risks are reshaping accounting, making them central to financial reporting, risk management, and advisory services. Here's what you need to know:

• Regulations are tightening: Frameworks like UK SRS, ISSB (IFRS S1 & S2), SECR, and CSRD now require businesses to quantify, disclose, and manage ESG risks with the same precision as financial data.

• Data quality is critical: Accurate Scope 1, 2, and 3 emissions reporting, audit trails, and integrated systems are essential to meet compliance and avoid penalties.

• Opportunities for accountants: Clients increasingly need help managing ESG risks like carbon pricing, supply chain vulnerabilities, and regulatory penalties. This creates demand for advisory services tied directly to financial outcomes.

• Tools are evolving: Platforms like neoeco simplify ESG data integration with financial systems, ensuring compliance and reducing manual errors.

Accountants must navigate these changes by mastering ESG standards, improving data management, and embedding sustainability into financial processes. Firms that act now can position themselves as trusted advisors in this growing area.

ESG – risk and opportunities for accountants

How ESG Risk Standards Are Changing

ESG reporting has evolved dramatically, shifting from a voluntary, reputation-focused activity to a mandatory requirement with direct implications for financial reporting and audits.

This change stems from the alignment of global and UK standards, which now view ESG factors as material financial risks. These risks must be quantified, disclosed, and managed with the same level of diligence as traditional financial metrics. For accountants, this marks a significant shift in how risk is assessed, reported, and incorporated into advisory services. ESG considerations are no longer peripheral - they are becoming a core part of everyday risk management.

The regulatory push is undeniable. Investors, lenders, and supply chain partners now expect reliable, auditable ESG data. Companies that fail to meet these expectations risk reputational harm, restricted access to funding, and even legal challenges. Accountants are at the forefront of this transition, ensuring ESG disclosures are accurate, consistent, and aligned with financial statements.

Main Reporting Frameworks Affecting ESG Risk

Several frameworks are shaping how ESG risks are identified and reported. For accountants, understanding these standards is vital to helping clients navigate compliance and manage risk.

ISSB Standards (IFRS S1 and S2)
The International Sustainability Standards Board (ISSB) has introduced IFRS S1 and S2, which set a global baseline for integrating ESG into financial reporting. IFRS S1 addresses general sustainability risks and opportunities, while IFRS S2 focuses specifically on climate-related disclosures. Both require companies to report on governance, strategy, risk management, and metrics. The UK plans to align closely with these standards, making them especially relevant for UK accountants. Learn how ISSB reporting fits into a financially integrated strategy

UK Sustainability Reporting Standard (UK SRS)
This domestic standard will guide UK companies in meeting mandatory sustainability disclosure requirements. Closely aligned with ISSB standards, UK SRS applies to large companies and public interest entities, requiring ESG risk reporting alongside financial performance. Accountants must ensure that sustainability data is robust and reliable.

Corporate Sustainability Reporting Directive (CSRD)
Although an EU regulation, CSRD impacts UK firms with EU operations or subsidiaries. It introduces "double materiality", requiring companies to report on both how ESG factors affect their financial performance and how their activities impact society and the environment. This broadens the scope of reporting, especially for firms with complex supply chains.

Streamlined Energy and Carbon Reporting (SECR)
SECR mandates that large unquoted companies and all quoted companies disclose energy use and carbon emissions. In place since 2019, SECR remains a foundational compliance requirement and supports broader climate reporting under ISSB and UK SRS.

Task Force on Climate-related Financial Disclosures (TCFD)
Since 2021, TCFD has been mandatory for premium-listed and large private companies. It focuses on climate risks, requiring disclosures across governance, strategy, risk management, and metrics. Many TCFD principles are now embedded within ISSB standards, ensuring continuity for companies already using this framework.

Greenhouse Gas Protocol (GHGP)
The GHGP underpins carbon accounting by categorising emissions into Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (other indirect emissions across the value chain). Accountants need a strong understanding of these categories to ensure accurate reporting, as they are critical for compliance with SECR, ISSB, and UK SRS.

Navigating these frameworks can be complex. For instance, a UK company may need to comply with SECR for carbon reporting, prepare for UK SRS aligned with ISSB standards, and incorporate TCFD-style climate disclosures into its annual reports. Firms with EU operations must also address CSRD's double materiality requirements. This complexity demands a unified approach, with sustainability data managed centrally and mapped to multiple frameworks.

These frameworks also extend reporting beyond direct operations to cover entire value chains. Value chain reporting is particularly challenging, as companies must now disclose emissions and risks across their suppliers, distributors, and even end-users. For accountants, this means helping clients gather, verify, and report Scope 3 emissions data, which often represents the largest share of a company's carbon footprint. Explore our approach to managing Scope 3 emissions in real time

How Standards Are Changing Risk Management

The new ESG standards are transforming how businesses approach risk. Sustainability is no longer a separate reporting exercise - it is now embedded into core business processes, including strategy, governance, and performance metrics.

Companies must disclose how ESG risks affect their business models and strategic planning. Boards are expected to oversee ESG risks through defined responsibilities, escalation processes, and controls akin to those used in financial reporting. ESG risks must also be integrated into existing enterprise risk management frameworks, with quantitative metrics such as carbon emissions, energy use, workforce diversity, and governance indicators. These metrics must be consistent, comparable, and verifiable - areas where accountants excel due to their expertise in financial data management.

A critical requirement is the creation of audit trails for sustainability data. This involves maintaining detailed documentation for emissions calculations, supplier data, and governance decisions, allowing auditors to verify the information. Accurate sustainability data is essential for both financial reporting and effective risk management.

The integration of ESG into financial reporting also creates new opportunities for accountants. Clients increasingly seek advice on interpreting ESG risks, setting science-based targets, and preparing for regulatory changes. Transitioning to systems that connect sustainability data with financial ledgers is crucial for ensuring accuracy, consistency, and compliance.

Environmental Risks Accountants Need to Track

Environmental risks have a direct impact on financial performance, asset values, and regulatory compliance. Accountants play a crucial role in translating these risks into measurable financial terms.

Three key areas now require focused attention: climate risks (both physical and transition-related), carbon reporting and data quality, and the increasing prominence of nature and biodiversity risks. Each of these presents distinct financial challenges that demand tailored strategies.

Climate Risks: Physical and Transition

Climate risks fall into two main categories, both of which can significantly influence asset values and operational costs.

Physical risks stem from climate-related events like flooding, extreme heat, storms, and rising sea levels. These events can damage assets, disrupt operations, and drive up insurance costs. For example, a factory located in a flood-prone area might face higher insurance premiums, a drop in asset value, or even become uninsurable. Additionally, extreme weather events can disrupt supply chains, halting production and eating into profits. Accountants need to conduct scenario analyses and asset impairment tests to determine if property, plant, and equipment valuations remain accurate under varying climate scenarios.

Transition risks arise from regulatory shifts, technological advancements, and market responses to climate policies. Measures like carbon pricing, energy efficiency mandates, and emissions caps can raise operational expenses, particularly for industries reliant on fossil fuels. Take a logistics company using diesel trucks: it may need to invest heavily in electrification to comply with future emissions standards. Transition risks also lead to stranded assets - investments that lose value as economies move away from fossil fuels. Accountants must evaluate potential asset write-downs and consider how these risks impact long-term financial stability.

With these climate risks in mind, accountants must also address the evolving challenges of carbon reporting and data quality.

Carbon Reporting and Data Quality Issues

Accurate carbon reporting is now a critical compliance requirement, but ensuring data quality remains a significant hurdle. Accountants must calculate Scope 1, 2, and 3 emissions with precision, align them with recognised frameworks, and present them transparently to withstand audits.

• Scope 1 emissions are direct emissions from owned or controlled sources, often derived from fuel consumption data already tracked for financial purposes. The challenge lies in converting these figures into carbon dioxide equivalents using reliable emission factors.

• Scope 2 emissions cover indirect emissions from purchased electricity, heat, or steam. These calculations depend on the energy supplier's carbon intensity, requiring companies to use both location-based and market-based methods and disclose both results.

• Scope 3 emissions account for all other indirect emissions across the value chain, often representing 70–90% of a company’s total carbon footprint. These include emissions from activities like procurement, business travel, commuting, and waste management. Gathering accurate data for Scope 3 requires close collaboration with various stakeholders.

Frameworks such as ISSB, CSRD, and UK SRS demand transparent reporting, requiring companies to clearly state assumptions and identify any data gaps. This level of scrutiny makes it essential to link carbon data directly to financial transactions.

Tools like neoeco simplify this process by automating the mapping of transactions to emissions categories, ensuring compliance with frameworks like GHGP, ISO 14064, and national standards such as SECR and UK SRS. By integrating with platforms like Xero, Sage, and QuickBooks, neoeco reduces manual errors, ensures audit-ready reporting, and keeps systems updated with evolving requirements. Features like real-time dashboards and policy hubs further enhance data quality management, helping firms maintain rigorous reporting standards.

For accountants managing multiple clients, having a unified system for sustainability reporting is essential to meet the same high standards as traditional financial accounts.

However, environmental risks extend beyond carbon to include broader concerns about natural resources.

Nature and Biodiversity Risks

Nature and biodiversity risks are gaining attention, driven by initiatives like the Taskforce on Nature-related Financial Disclosures (TNFD) and growing investor focus on ecosystem health.

Land use is a significant factor. Industries such as agriculture, forestry, and mining must assess how their operations affect soil health, deforestation, and habitat destruction. Land degradation can lower productivity, attract regulatory scrutiny, and create legal liabilities.

Water stress is another pressing issue. Sectors like food production, textiles, and manufacturing depend heavily on reliable water supplies. In areas with limited water availability, companies may face higher tariffs, usage restrictions, or the need to invest in water-saving technologies, all of which increase costs. Accountants must help quantify these risks, particularly in regions with competitive or constrained water supplies.

Biodiversity loss can disrupt supply chains, especially for businesses reliant on raw materials from ecologically sensitive areas. For example, the decline of pollinators can affect agricultural yields, while investor pressure pushes companies to disclose how they manage dependencies on natural resources.

The TNFD provides a framework for assessing and reporting nature-related risks, encouraging companies to identify their reliance on natural ecosystems and outline how they address these risks. While TNFD adoption is currently voluntary, it is likely to influence future mandatory reporting requirements as frameworks like ISSB incorporate nature-related disclosures.

To address these risks, accountants must work closely with operational teams to gather data on land use, water consumption, and ecosystem impacts. This ensures that financial assessments fully capture environmental dependencies.

Governance Risks That Affect Financial Reporting

Strong governance is just as important for managing ESG risks as accurate environmental and social disclosures are for reliable financial reporting. This governance lens complements earlier discussions on environmental and social risks. Effective board oversight and dependable data controls are essential for identifying weak points and reducing legal exposure. Let’s explore how governance failures can harm ESG reporting and increase legal risks.

Governance Risks: Oversight, Data Controls, and Legal Exposure

When boards lack proper oversight, they may miss critical risks or fail to respond quickly to changing regulations. For boards to effectively include sustainability in strategic planning, they need access to accurate and timely ESG data.

Poor data controls - like relying on manual processes or scattered systems - can compromise the accuracy of ESG data and lead to inconsistencies in reporting. Without systems that are audit-ready and centralised, firms often struggle to prove compliance during audits. Additionally, the lack of standardised practices can create further inconsistencies in how data is collected and reported, which can undermine both regulatory compliance and data accuracy. These weaknesses directly impact the audit trails and system integration discussed throughout this guide’s approach to ESG risk management.

To align board oversight with day-to-day operations, accountants should consider using integrated sustainability accounting platforms. These systems ensure that financial and sustainability data are consistent and automatically monitor compliance with frameworks like GHGP, SECR, and UK SRS. For instance, neoeco (https://neo.eco) offers tools to centralise data management, provide audit-ready controls, and simplify compliance processes.

"I found the Policy Builder extremely useful at our stage because having a template of a well-conceived policy helps in the standardisation of new practices and ensure that written guidelines are best-in-class." - Jennifer Kaplan, Sustainability Manager

Centralising ESG data into a single platform that automates reconciliation, cleaning, and tracking not only improves audit readiness but also strengthens internal verification processes.

Regulatory and Legal Requirements for UK Accountants

UK accountants are now navigating a growing maze of sustainability reporting rules that are reshaping their roles. These aren't just optional extras anymore - they've become integral to financial reporting, demanding the same level of precision and diligence as traditional accounting standards.

What CSRD, ISSB, and UK SRS Mean for UK Firms

Sustainability reporting in the UK now operates under three major frameworks: the Corporate Sustainability Reporting Directive (CSRD), the International Sustainability Standards Board (ISSB) standards, and the UK Sustainability Reporting Standards (UK SRS).

UK SRS targets large UK companies and starts rolling out in 2025. It builds on existing frameworks like SECR (Streamlined Energy and Carbon Reporting) and the Task Force on Climate-related Financial Disclosures (TCFD) but extends further. Unlike SECR's narrower focus on energy and carbon, UK SRS demands a broader range of ESG (Environmental, Social, and Governance) disclosures.

ISSB standards, specifically IFRS S1 and S2, set a global benchmark for sustainability reporting. UK firms with international operations or investors will likely need to align with these guidelines. IFRS S1 focuses on general sustainability-related financial disclosures, while IFRS S2 hones in on climate-specific risks. Both emphasise how sustainability risks impact enterprise value and financial performance - an area accountants are already well-versed in. Curious about how these standards fit into broader financial strategies? Check out this guide.

CSRD applies to UK subsidiaries of EU-based parent companies and UK businesses operating within the EU. It introduces double materiality, requiring companies to report not only on how sustainability issues affect their business (financial materiality) but also on how their operations impact society and the environment.

These frameworks interact with existing UK regulations in nuanced ways. For example, SECR remains mandatory for large unquoted and quoted companies, requiring annual energy and carbon emissions reporting. UK SRS expands on this, creating a more detailed and comprehensive structure.

For accountants, this means understanding how these requirements overlap and identifying any gaps. A client already reporting under SECR will need to broaden their data collection and controls to comply with UK SRS. Similarly, firms with clients operating in the EU must juggle the varying scopes and materiality approaches of both UK SRS and CSRD.

The phased rollout offers a chance to prepare. Companies can start building the necessary data infrastructure and controls now, avoiding last-minute scrambles as deadlines approach. This is where sustainability accounting software becomes invaluable. Tools like neoeco can automate compliance with GHGP, SECR, and UK SRS.

The convergence of these frameworks is forcing accountants to rethink their data systems and reporting methods. As these standards tighten, so do the legal consequences for failing to comply.

Legal Risks: Greenwashing and Control Requirements

With the growing emphasis on auditable ESG data, greenwashing litigation is on the rise. Regulators and investors are scrutinising sustainability claims as rigorously as financial statements. This creates both risks and opportunities for accountants.

The legal risks stem from various sources. For instance, companies making unverified environmental claims could face action under the Competition and Markets Authority’s (CMA) Green Claims Code, introduced in 2021.

To mitigate these risks, internal controls for sustainability data must match the rigour of financial reporting. This means establishing clear audit trails, segregating duties, and maintaining comprehensive evidence files. Relying on manual processes or spreadsheets is risky - they lack the controls and version tracking that financial systems offer.

The solution? Treat sustainability data with the same care as financial data. Platforms that integrate sustainability metrics directly with financial ledgers (e.g., Xero, Sage, or QuickBooks) can extend financial controls to ESG reporting. This approach mirrors the integration of sustainability and financial processes discussed earlier.

Key controls include:

• Automated reconciliation of financial transactions and emissions data

• Centralised evidence storage for emission factors, calculations, and supporting documentation

• Version control to track data changes and identify who made them

• Secure auditor access to verify data without breaching confidentiality

"I found the Policy Builder extremely useful at our stage because having a template of a well-conceived policy helps in the standardisation of new practices and ensure that written guidelines are best-in-class." – Jennifer Kaplan, Sustainability Manager

Accountants should maintain direct oversight of data reconciliation, calculations, and reporting. Outsourcing these tasks to third parties can create control gaps and weaken audit defences.

The risks of greenwashing extend beyond environmental claims. Social and governance disclosures, such as those related to supply chain ethics, diversity metrics, or board oversight, are also under scrutiny. Any claims must be backed by verifiable evidence. Integrated systems that tie sustainability data to financial processes offer stronger legal protection by creating the same type of audit trail accountants rely on for financial reporting.

For firms looking to expand their ESG advisory services, demonstrating robust controls isn't just about compliance - it's a competitive edge. Clients increasingly want assurance that their sustainability reports can withstand regulatory and investor scrutiny. Accountants who provide audit-ready ESG data, supported by the same rigorous controls applied to financial statements, position themselves as trusted advisors, not just compliance enforcers.

How Accountants Can Manage ESG Risks and Provide Advisory Services

As mentioned earlier, accurate ESG data plays a critical role in managing risks and capitalising on opportunities. For accountants, integrating sustainability data into existing financial systems - rather than treating it as a standalone task - can turn ESG risks into actionable insights and competitive advantages.

Adding ESG to Financial Processes

ESG risks influence key financial elements like budgets, forecasts, and performance metrics. By embedding these risks into core financial processes, accountants can provide a clearer picture of current operations and future challenges.

For example, climate transition risks, such as carbon pricing, can directly affect capital expenditure planning and long-term forecasts. Similarly, physical climate risks - like flooding or extreme weather - impact asset valuations, insurance premiums, and supply chain stability. Incorporating these scenarios into financial models helps translate abstract ESG risks into measurable financial outcomes that boards and investors can easily understand.

Risk registers should now reflect ESG-specific risks alongside traditional financial and operational risks. This includes climate-related risks (both physical and transitional), nature-related concerns, and social issues like labour shortages or supply chain ethics. Each entry should detail financial exposure, mitigation strategies, and clear accountability.

Financial KPIs, such as EBITDA or return on assets, should be assessed alongside sustainability metrics. For example, emissions intensity (measured in tCO₂e per £ revenue), energy efficiency trends, and waste reduction percentages can offer a more comprehensive view of performance. This integrated approach helps clients track progress while uncovering links between operational efficiency and environmental impact.

The key is to treat sustainability data with the same level of precision as financial data. Using consistent ledgers, controls, and audit trails ensures credibility and reduces risk. When sustainability and financial data are seamlessly integrated, businesses gain a clearer path to informed decision-making.

Using Financially Integrated Sustainability Management (FiSM)

Financially Integrated Sustainability Management (FiSM) bridges the gap between finance and sustainability by building on existing financial data systems. Instead of creating separate processes or relying on third-party data, FiSM platforms connect directly to financial tools like Xero, Sage, or QuickBooks, automatically linking transactions to relevant carbon and sustainability metrics.

This is where neoeco comes in. Tailored for accounting firms in the UK and Australia, neoeco enables professionals to deliver carbon accounting and sustainability services with a high level of compliance. The platform maps transactions to recognised emissions categories, producing audit-ready reports that align with frameworks like GHGP, ISO 14064, SECR, UK SRS, and ASRS 2.

Here’s how it works: data is pulled directly from financial ledgers, eliminating the need for manual spreadsheets. A payment to a fuel supplier is automatically categorised under Scope 1 emissions. Electricity invoices are linked to Scope 2, while supplier invoices for goods and services feed into Scope 3 calculations. This automated mapping ensures accurate, finance-grade carbon data and streamlined reporting.

By keeping reconciliation, calculation, and reporting in-house, accountants maintain full control over data quality and compliance. The FiSM platform acts as a central hub for policies and documentation, supporting audits and ensuring adherence to standards like ISO 14064 or ISSA 5000.

For firms providing recurring advisory services, FiSM platforms offer the tools to scale efficiently. Features like real-time dashboards, automated compliance templates, and secure auditor access make it easier to manage sustainability reporting for multiple clients. Whether working with SMEs, large private companies, or voluntary reporters under the VSME standard, this approach simplifies the entire reporting process.

Additionally, integrating sustainability into financial systems creates opportunities for growth. Clients who start with basic carbon accounting often expand into broader advisory services, such as scenario modelling for carbon pricing, setting emissions reduction targets, or preparing for future regulations. To learn more, check out our guide to financially-integrated sustainability management.

Skills Accountants Need for ESG Advisory

To provide effective ESG advisory services, accountants need to go beyond traditional skills while maintaining their expertise in data management and financial analysis.

A deep understanding of reporting standards is critical. Accountants should be familiar with frameworks like GHGP, ISSB (including IFRS S1 and S2), UK SRS, CSRD, and SECR. This knowledge ensures accurate application of standards, particularly for complex areas like Scope 3 emissions or emissions intensity calculations.

Analysing ESG issues requires a dual focus: assessing financial impacts while recognising broader societal implications. This balanced approach involves engaging stakeholders, prioritising risks, and applying sound professional judgement.

Collaboration across departments is equally important. ESG data often comes from various sources - energy data from facilities management, workforce metrics from HR, and supplier information from procurement. Effective communication and coordination are essential to establish reliable data governance.

Sustainability data must be verified with the same rigour as financial records. Assumptions should be challenged, sources validated, and documentation maintained to ensure consistency and accuracy.

Proficiency with financial systems like Xero, Sage, or QuickBooks is a must. Accountants should understand how sustainability platforms integrate with these systems, enabling them to troubleshoot issues and ensure smooth data flows.

Lastly, strong communication skills are vital for advisory work. ESG insights should be framed in financial terms - highlighting cost savings, risk reduction, or improved investor confidence - rather than presenting raw data. This approach makes sustainability improvements more relatable and actionable for clients.

Conclusion: What Accountants Should Remember About ESG Risks

ESG risks are reshaping how businesses operate and report, presenting both hurdles and opportunities for accountants. Firms that embrace sustainability early can position themselves to provide forward-thinking services while tapping into new revenue streams.

ESG data demands the same level of scrutiny as financial data. Climate risks, nature-related challenges, and social issues all have measurable financial consequences. Whether it's carbon pricing influencing capital budgets, climate risks affecting asset values, or ethical concerns in supply chains disrupting operations, these factors need to be incorporated into risk assessments, financial models, and boardroom conversations. By embedding ESG considerations into existing financial processes rather than treating them as standalone tasks, accountants can maintain accuracy, control, and trustworthiness.

Regulatory frameworks like CSRD, ISSB, and UK SRS are raising the bar for compliance. The dangers of greenwashing are real, and the penalties for poor data management are increasing. Accountants who understand these regulations and know how to implement them effectively will be highly sought after. Many organisations lack dedicated sustainability roles, leaving a gap that accounting firms can fill with advisory expertise.

The technical tools matter too. Platforms such as neoeco simplify emissions tracking, ensuring audit-ready reports and reliable data management. This approach, built on Financially-integrated Sustainability Management (FiSM), allows accountants to handle reconciliation, calculations, and reporting internally, ensuring they maintain control over data quality and compliance. This integration also sets the stage for expanding advisory services.

Starting with basic carbon accounting, accountants can guide clients toward broader advisory work, like scenario planning, emissions reduction strategies, and preparing for evolving regulations - all while leveraging their existing financial expertise. This isn't about adding unnecessary complexity - it's about applying core accounting strengths to meet growing demand.

The skills required for this transition naturally align with traditional accounting practices: managing data, thinking systematically, paying close attention to detail, and communicating clearly. By mastering reporting standards, validating key assumptions, and translating sustainability metrics into financial insights, accountants can confidently step into this evolving space.

Accurate ESG data strengthens financial controls, and combining these two areas of expertise gives firms a competitive edge. The time to act is now - build your skills, adopt integrated tools, and expand your services to meet client needs, or risk losing ground to more agile competitors.

FAQs

How can accountants incorporate ESG risks into financial reporting effectively?

Accountants can bring ESG (Environmental, Social, and Governance) risks into financial reporting by tying sustainability metrics to traditional financial data. This means pinpointing ESG factors that matter most to the business - like carbon emissions, energy consumption, or social contributions - and ensuring they’re measured and reported with precision.

With tools like neoeco, this process becomes much more efficient. These tools allow financial transactions to be directly linked to established sustainability frameworks such as GHGP, ISO 14064, SECR, or UK SRS. The result? Audit-ready reports without the need for manual data conversions. Beyond ensuring compliance, this method enables firms to expand their services, offering advisory support to help clients adapt to regulatory demands and strengthen their long-term strategies.

What challenges do accountants face in managing Scope 3 emissions data, and how can they address them effectively?

Managing Scope 3 emissions data presents a tough challenge for accountants, largely due to its complexity and the need to depend on external data sources. These emissions often require detailed supply chain information, which is frequently fragmented, inconsistent, or hard to validate. On top of that, aligning this data with established reporting frameworks like the GHG Protocol can be a laborious and error-prone task, especially when handled manually.

One way to tackle these issues is by using specialised sustainability accounting tools such as neoeco. These tools integrate seamlessly with financial data, automating the process of mapping transactions to specific emissions categories. This not only ensures compliance with frameworks like SECR and ISO 14064 but also eliminates manual errors, producing accurate, audit-ready reports. By adopting these solutions, accounting firms can simplify the management of Scope 3 emissions data and deliver trustworthy sustainability insights to their clients.

How do global ESG standards like the ISSB and UK SRS influence accountants’ roles in managing compliance and risk?

The alignment of global ESG standards, like the ISSB and UK SRS, makes compliance much easier by introducing consistent frameworks for reporting. With these in place, accountants can streamline the process of gathering and analysing data, resulting in more accurate, audit-ready reports and a noticeable reduction in manual work.

Bringing together financial and sustainability reporting enables accountants to take a more proactive approach to risk management, boost transparency, and offer deeper insights to their clients. This alignment not only helps firms meet regulatory obligations but also strengthens their ability to advise on sustainability matters effectively.

Related Blog Posts

• Quantitative ESG Data: Why It Matters for CFOs

• Financial Impact of Carbon Risk: What Accountants Should Know

• Case Study: Supplier ESG in Carbon Reporting

• How ESG Creates Value and Reduces Risk