SUSTAINABILITY REPORTING

most impactful to the organization. “ESG issues will vary by industry and company,” he says, adding that it may pay to start addressing key issues sooner rather than later. “It’s not necessarily appropriate to wait around for the regulators to tell you what to do. There are cost-benefit reasons for doing this depending on your business and industry,” he says.

The Moss Adams ESG team advises clients to begin by assembling appropriate cross-functional teams focused heavily on the planning aspect. Decide what information is most important to various stakeholder groups, which will lead to the core of the outcome and ultimately determine what is reported.

IS ESG GOOD BUSINESS?

Burton encourages clients to keep politics out of their decisionmaking process. “Most of what we read in the press about the politicization of ESG doesn’t consider all of the elements involved,” he says. “Don’t let the emotion and sensationalism of the topic keep you from talking to your clients or your companies about how these common business challenges are affecting the organization. Focus on the issues that benefit the organization now and into the future, and make sure you’re addressing them.”

Another business bonus: a company’s ESG strategy can be a key part of its recruiting and retention efforts. “Even when there’s not a perceived or evident financial case for ESG, it plays a role in recruiting and retaining talent,” Pfahl says. “We’re seeing more data in the current environment indicating that employees are much more likely to join a company with a significant focus on ESG issues.”

ESG is still new and unfamiliar, and that can cause fear and uncertainty, but Burton says one day, ESG decisions will simply be known as business decisions. “COCPA members are perfectly positioned to help clients unwind the issues and understand the impact.”

The COCPA ESG Working Group is exploring the development of an integrated report for the Society, including what to measure and report. In addition, the group is looking at ESG resources to provide to COCPA members. For more information on the ESG Working Group, contact Kelli Davis at kelli@cocpa.org.