What is an ESG consultant?

What do ESG Consultants do?

ESG consultants provide expertise in integrating environmental, social, and governance considerations into business operations. Their work begins by assessing how these factors influence an organization’s strategy and risk profile. They guide businesses in aligning with global sustainability frameworks and evolving regulatory landscapes.

Some companies have large internal sustainability teams, and some may not, and ESG consultants can add value in both cases. For organizations with established sustainability teams, an ESG consultant can offer their experience navigating regulatory frameworks or materiality assessments that may be new or evolving. They can also serve as a sounding board for strategy and decision-making, offering a broader perspective shaped by extensive work across various industries and sustainability challenges. 

For clients with smaller or nonexistent sustainability teams, an ESG consultant can help reduce overhead costs. Instead of hiring and training an internal team member, the consultant can step in and immediately take over the sustainability processes where needed. 

In addition to creating ESG reports, ESG consultants can offer a wide array of deliverables to prospective clients. In addition to extensive expertise in regulatory compliance, frameworks, and assessments, consultants can also help to translate complex sustainability topics into clear, meaningful communications for customers, investors, decision-makers, and other stakeholders. The ability of a consulting partner to view your operations from an outside perspective can also lead to undiscovered opportunities within your organization.

Key roles of ESG consultants include:

• Conducting thorough ESG and materiality assessments
• Integrated financial and ESG reporting 
• Risk assessment and mitigation
• Benchmarking and ratings analyses
• Writing copy for annual ESG Reports
• Creating internal sustainability communications 
• Developing business and brand sustainability strategies
• Assisting in ESG performance measurement and regulatory reporting for frameworks include GRI, SASB, TCFD, CSRD, IFRS, and more 
• Helping companies to obtain both obligatory and optional sustainability certifications across a wide array of industries

Our blog Top 6 Reasons Why Companies Create an ESG Report details even more on the importance and motivation behind creating an ESG Report. 

At OBATA, we follow a proven 7-Step ESG Reporting Process. Divided into two phases, this reporting process has guided us through the successful completion of over 100 ESG Reports across industries including technology, infrastructure, energy, transportation, financial services, manufacturing, consulting, and life sciences. Serving clients across the globe, we are confident in this process to deliver results that our clients can be proud of.

How to select the right ESG consultant

Choosing the right ESG consultant is crucial for the success of any sustainability initiatives. The consultant’s expertise and experience should align with the client’s business needs and industry-specific challenges. Evaluating their background and experience is crucial in ensuring they are the right fit for each organization. 

First, define your company’s ESG goals. An understanding of your objectives will guide the selection criteria and ensure alignment with potential consultants.

Second, consider the consultant’s portfolio of work which reveals insights into their ability to deliver effective solutions. Client testimonials and past project successes can provide valuable information about their reliability and effectiveness in ESG reporting across varying industries and communication styles. The design capabilities and style of each consultancy is also an important consideration in ensuring that your ESG report is visually appealing and aligned with your company’s brand standards. 

The consultant should possess comprehensive knowledge of current ESG trends and global regulations, especially as they can evolve quickly. This understanding ensures that your strategies are up-to-date and compliant with ever-changing standards. Their awareness of regulatory dynamics are crucial in helping clients to navigate changing environments effectively. Creating a shortlist of ESG consultants, and then working to interview them, completes the final steps of the selection process. 

Key questions to ask include:

• What is your experience with various ESG reporting frameworks?
• How do you ensure alignment with our sustainability goals?
• Can you provide examples of successful ESG initiatives you’ve led or reports you have published?

Consider these essential steps:

1. Define ESG objectives
2. Research potential consultants
3. Shortlist based on expertise
4. Interview finalists for compatibility

When considering criteria, focus on:

• Depth of industry knowledge
• Adaptability to company size and needs
• Ability to offer tailored solutions 
• Understanding of evolving global ESG standards and frameworks

Selecting a consultant with these attributes fosters a partnership that promotes sustainable development and enhances ESG efforts.

Why hiring an ESG consultant is worth it

Choosing to work with an ESG consultant is less about checking a box and more about setting your business up for smarter, more resilient growth. The right partner doesn’t just help you navigate reporting requirements or evolving frameworks. They help you make sense of a complex and fast-changing sustainability landscape, ask better questions, and turn ESG from a compliance exercise into something that supports decision-making and adds long-term value. 

When businesses work with the right ESG consultant, they can uncover opportunities they wouldn’t have seen on their own, whether that’s improving operations, strengthening credibility with investors and customers, or building a clearer business case for sustainability initiatives. Over time, that partnership becomes a strategic asset, not just a service, helping organizations move beyond compliance and toward innovation and operational excellence.

If you’re thinking about where ESG fits into your business or how to take your efforts to the next level, OBATA is here to help. Let’s start a conversation about what you need and where you’re headed.