• Regulatory pressure is transforming ESG compliance into a strategic opportunity.
• Organizations excelling in ESG capabilities drive greater business value.
• Accenture’s innovative tools help businesses integrate and leverage ESG data.

As companies worldwide strive to meet sustainability goals, the urgency to adapt to evolving regulatory landscapes is paramount. New environmental, social, and governance (ESG) reporting requirements, including the EU’s Corporate Sustainability Reporting Directive (CSRD) and the US SEC’s Climate-Related Disclosures, are reshaping business operations.

Strategic Approach to Climate Disclosures

Accenture aided a financial services firm in meeting SEC climate risk disclosure requirements and preparing its Carbon Disclosure Project (CDP) report. This strategic integration of climate programs into company operations has enhanced their ability to manage and report climate risks effectively. The firm’s successful incorporation of climate strategy positions it to meet upcoming disclosure mandates.

Driving Value with Sustainability

Our 2023 Reinvention research reveals that companies excelling in continuous reinvention increased revenues by an additional 15 percentage points from 2019 to 2022. Reinventors, who integrate sustainability deeply, outperform peers financially and in non-financial metrics.

Key ESG Capabilities for Competitive Advantage

Accenture’s ESG Measurement and Management Study highlights nine essential capabilities for moving beyond compliance:

• Data Collection & Quality: Automated processes and controls ensure robust ESG data.
• Transparency & Integration: Non-financial KPIs linked to financial metrics.
• Advanced Analytics: Leveraging AI to analyze and forecast ESG data.

Case Studies

Wilo Group: Integrated ESG strategy supported by executive commitment, demonstrating the potential of regulatory frameworks to achieve ambitious sustainability goals.

Global Grocer: Improved ESG data processes, reducing carbon emissions by 50% and enhancing supply chain transparency.

Leveraging Technology

Accenture’s ESG-specific large language model (LLM) enhances ESG reporting, offering substantial productivity and quality improvements. Companies using these advanced tools see a 74% increase in productivity and a 22% quality boost.

Insights from ESG Data

Transforming ESG data into actionable insights is crucial. Accenture helps clients build robust digital cores, using cloud and AI to streamline ESG data collection and analysis, turning compliance into a growth opportunity.

Shared Accountability in ESG

Companies with strong ESG capabilities often have multiple executives responsible for ESG performance, enhancing cross-functional collaboration and strategic integration. This shared accountability accelerates sustainability efforts and drives business success.

Related Article: Google, KPMG, Accenture Among Top 10 Emitters: Businesses Lag on Cutting Travel Emissions Despite Climate Pledges

Recommendations for CFOs

• Define Ambition: Decide if the goal is compliance or leveraging ESG for business growth.
• Prepare for Compliance: Conduct readiness assessments and secure necessary skills.
• Integrate ESG Reporting: Align ESG and financial planning to support strategic decision-making.
• Engage Stakeholders: Proactively communicate with regulators and internal teams to embed ESG into business operations.

Accenture remains committed to helping organizations unlock value and growth through integrated ESG strategies, combining technology and human ingenuity for sustainable success.