Environmental, social, and governance (ESG) factors are no longer just a concern for sustainability teams. As businesses face increasing pressure from investors, regulators, and consumers to demonstrate their ESG credentials, finance professionals and accountants are playing a central role in how organisations report on their ESG performance.
But what does ESG reporting actually involve — and what do finance professionals need to know to stay ahead?
ESG reporting is becoming mainstream
Once seen as a niche or voluntary activity, ESG reporting is quickly becoming a standard business practice. Companies across the UK and beyond are being asked to disclose data on everything from carbon emissions and energy usage to employee diversity and supply chain ethics.
New regulations, such as the EU Corporate Sustainability Reporting Directive (CSRD), and investor expectations are pushing organisations to be more transparent and accountable. In many cases, ESG disclosures are now included alongside traditional financial statements.
This means finance teams are ideally placed to lead the charge. Their skills in data accuracy, regulatory compliance, and risk assessment make them natural owners of ESG reporting processes.
Key challenges for finance professionals
While ESG reporting brings opportunities, it also introduces new complexities. Accountants and finance professionals need to:
- Understand a range of frameworks and standards – including the IFRS Sustainability Disclosure Standards, SASB, TCFD, and GRI.
- Ensure data integrity – ESG data is often drawn from many sources across a business. Ensuring accuracy and consistency is essential.
- Develop new skills – ESG reporting requires knowledge of environmental impact metrics, social indicators, and governance benchmarks.
- Balance short- and long-term thinking – Finance professionals must link ESG performance to financial outcomes, supporting both sustainability and profitability.
The skills gap is closing — but not fast enough
Despite the growing importance of ESG, many finance professionals feel underprepared. In a recent survey by the CFA Institute, just 11% of investment professionals said they were fully confident in their firm’s ESG capabilities.
The good news is that training options are becoming more accessible. With the right learning pathways, accountants and finance professionals can quickly upskill and gain confidence in ESG reporting and sustainable finance.
Build your ESG expertise with Kaplan
Whether you're looking to deepen your understanding of ESG principles or get hands-on with sustainable investing, Kaplan has a range of options to support you and your team:
The bottom line
ESG is here to stay, and finance professionals have a vital part to play. By building your knowledge now, you’ll not only help your organisation meet its responsibilities — you’ll also future-proof your own career.