Nov 03: Sustainability is becoming a business issue that companies can no longer address through commitments and policy statements alone. Investors want measurable information about environmental performance, corporate customers are reviewing supplier practices, and regulators are introducing more structured disclosure requirements. As a result, businesses are paying greater attention to how they measure, document and communicate their sustainability performance.
This change is creating demand for a specialised range of professional services. Companies need help with everything from measuring carbon emissions and collecting environmental data to preparing sustainability reports and understanding regulatory requirements.
For large organisations, these responsibilities can involve several departments and multiple business locations. Smaller businesses face a different challenge: they may not have the resources to employ dedicated ESG professionals or invest in specialised reporting systems.
Consequently, ESG consulting firms, accounting service providers and business process outsourcing (BPO) companies are finding new opportunities in sustainability reporting.
What makes this development particularly interesting is that the demand extends beyond report preparation. Businesses increasingly need year-round assistance with data collection, performance monitoring, compliance documentation and reporting systems. This could make sustainability services an important growth area for the global professional services and outsourcing industries.
Why Businesses Are Paying Greater Attention to ESG Reporting
Environmental, Social and Governance (ESG) reporting provides stakeholders with information about how companies manage their environmental impact, employees, business practices and corporate responsibilities.
Several developments are driving its adoption.
Investors are increasingly interested in understanding how climate-related risks, energy costs, resource availability and governance practices could influence a company’s future performance. Sustainability information can help them assess risks that may not be immediately visible in traditional financial statements.
Supply chain expectations are another important factor. Large corporations are asking their suppliers to provide information about emissions, energy consumption, waste management and labour practices. Businesses seeking international contracts may therefore need to demonstrate their sustainability practices even if they are not directly subject to mandatory ESG reporting.
Regulatory developments are also influencing corporate behaviour. The International Sustainability Standards Board (ISSB), established by the IFRS Foundation, introduced IFRS S1 and IFRS S2 to provide a global baseline for sustainability-related financial disclosures.
In Europe, the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) have established a framework for corporate sustainability disclosures. However, the regulatory landscape has continued to evolve, with the European Union introducing simplification measures to reduce reporting requirements and administrative costs.
For businesses operating across multiple markets, understanding these different requirements is becoming an important management responsibility. This is creating opportunities for ESG consultants who can help companies interpret reporting standards and develop suitable compliance processes.
The Growing Complexity of Sustainability Data
Preparing an ESG report involves collecting information from several areas of a business. Unlike conventional financial information, sustainability data is often spread across departments, facilities and external suppliers.
A manufacturing company, for example, may need to track electricity consumption, fuel usage, water consumption, waste generation and transportation-related emissions. It may also need information about the environmental practices of its suppliers.
The human resources department may maintain records relating to employee welfare, workplace safety and diversity, while the finance and compliance teams handle governance-related information.
Bringing these records together requires consistent reporting methods and coordination between departments.
Carbon accounting adds another layer of complexity. Companies may need to measure three categories of greenhouse gas emissions:
- Scope 1: Direct emissions from sources owned or controlled by the company.
- Scope 2: Indirect emissions associated with purchased electricity, heating and cooling.
- Scope 3: Other indirect emissions generated across the company’s value chain.
Scope 3 reporting can be particularly demanding because it requires information from suppliers, transport providers and other external partners.
For businesses with international supply chains, gathering reliable information from multiple sources can become a continuous task. Incomplete records or inconsistent calculations can also affect the quality of the final disclosure.
This is one reason companies are looking beyond their existing finance and administrative teams for specialised ESG reporting support.
Why Companies Are Hiring ESG Consultants
ESG consultants are helping businesses understand their reporting responsibilities and develop systems to manage sustainability-related information.
Their role is not limited to preparing annual reports. They can work with management teams to identify important ESG issues, assess existing practices and establish processes for monitoring performance.
Some of the key services offered by ESG consulting firms include:
ESG compliance and regulatory guidance: Businesses need to understand which reporting standards apply to their operations. Consultants help interpret relevant requirements, identify gaps and develop appropriate disclosure procedures.
Carbon accounting and emissions measurement: Companies looking to reduce their environmental footprint first need to understand where their emissions originate. Consultants help establish measurement systems, calculate carbon footprints and identify opportunities for improvement.
Sustainability strategy: ESG specialists help businesses assess environmental and social risks and incorporate relevant considerations into corporate planning.
Supply chain sustainability: Companies increasingly need to evaluate their suppliers’ environmental and labour practices. Consultants can help establish assessment procedures and monitor potential risks.
Reporting and assurance readiness: Businesses need supporting documentation and reliable internal controls. Consultants help organise information and prepare companies for independent assurance where applicable.
For organisations entering ESG reporting for the first time, these services can provide access to expertise without requiring them to develop every capability internally.
Why Sustainability Reporting Outsourcing Is Gaining Momentum
While ESG consultants often focus on strategy and technical guidance, outsourcing partners can take on much of the operational work involved in sustainability reporting.
Establishing an in-house ESG department requires investment in recruitment, training, software and reporting infrastructure. This may not be practical for companies that need specialised support but do not have sufficient ongoing requirements to maintain a large internal team.
Sustainability reporting outsourcing offers an alternative. Companies can engage external service providers to manage specific reporting activities or support the process throughout the year.
These services may include:
- ESG data collection and consolidation.
- Carbon emissions data processing.
- Sustainability report preparation and documentation.
- Supplier information management.
- Monitoring environmental and social performance indicators.
- Maintaining records for compliance reviews.
- Supporting internal reporting and disclosure processes.
The model is particularly relevant for multinational businesses that need to consolidate sustainability information from different countries and operating locations.
It also creates opportunities for BPO companies to expand beyond traditional finance, accounting and administrative services.
However, outsourcing does not transfer corporate accountability. Companies remain responsible for reviewing their disclosures, maintaining appropriate controls and ensuring that the published information is accurate.
How Technology Is Changing ESG Reporting Services
Technology is becoming an important part of the sustainability reporting process.
Businesses that depend on spreadsheets, emails and separate departmental records often find it difficult to maintain consistent information. Dedicated ESG software platforms are helping address this problem by bringing sustainability data into centralised systems.
These platforms can help companies monitor energy consumption, track emissions, maintain environmental records and organise information required for disclosures.
Artificial intelligence and data analytics are also creating new possibilities. Businesses can use these tools to examine operational information, identify unusual energy consumption patterns, analyse supplier data and highlight missing information.
Cloud-based systems make it easier for internal teams, consultants and outsourcing partners to collaborate on reporting activities.
For technology companies and BPO providers, this creates opportunities to develop services that combine ESG knowledge with data management and automation.
However, automated reporting does not eliminate the need for human oversight. Companies still need to verify source information, review calculations and ensure that sustainability claims are supported by appropriate evidence.
What Global Research Reveals About Sustainability Reporting
The expansion of ESG reporting is reflected in a June 2026 study by the International Federation of Accountants (IFAC), the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).
The study, The State of Play: Sustainability Disclosure and Assurance (Six-Year Trends and Analysis, 2019–2024), examined approximately 1,400 companies across 22 jurisdictions.
Its findings offer a useful indication of how corporate reporting practices are changing.
Among the key findings:
- 97% of the companies surveyed disclosed some form of sustainability information in 2024.
- 75% obtained assurance on at least some of their sustainability disclosures.
- Audit firms conducted 59% of the sustainability assurance engagements examined.
- One-third of companies referenced the use or planned use of ISSB standards, more than double the previous year’s proportion.
The findings suggest that sustainability disclosures are becoming more structured, with businesses paying greater attention to the credibility of the information they publish.
The increasing use of independent assurance is also significant. Companies are recognising that reporting sustainability performance requires reliable documentation and stronger internal processes.
For ESG consultants, accounting firms and outsourcing providers, this creates opportunities to support businesses with data management, reporting preparation and assurance readiness.
Europe’s Changing ESG Rules Create New Consulting Opportunities
Europe remains an important market to watch because of its influence on international corporate reporting practices.
On July 3, 2026, the European Commission adopted revised European Sustainability Reporting Standards aimed at simplifying disclosure requirements while maintaining relevant sustainability information.
The revised standards reduce mandatory reporting datapoints by more than 60% and total datapoints by more than 70%. The Commission also expects the changes to reduce reporting costs by over 30% per company.
The Commission introduced a voluntary reporting standard for smaller businesses outside the scope of mandatory CSRD reporting. This is particularly relevant for SMEs that receive sustainability information requests from large companies and financial institutions.
The revised standards were subsequently published in the Official Journal of the European Union on September 21, 2026, with an effective date of November 10, 2026.
These developments show that the ESG reporting market is evolving. Companies may have fewer mandatory datapoints to manage, but they still need to understand the applicable rules, identify relevant information and maintain reliable records.
For consulting firms, this creates demand for regulatory interpretation, reporting adjustments and compliance support. Outsourcing providers can also assist companies in updating their data collection and documentation processes.
India Could Benefit from the Growing Demand for ESG Outsourcing
The expansion of sustainability reporting offers an interesting opportunity for India’s established IT, accounting and business process outsourcing industries.
Indian service providers already support international clients with finance and accounting, data processing, compliance documentation and business administration. These capabilities could be extended to ESG-related services.
For example, an Indian outsourcing company could help a European manufacturer consolidate energy consumption data from different facilities. Another provider could assist an international business with organising supplier sustainability information, maintaining emissions records or preparing supporting documentation for corporate disclosures.
Such services require professionals with knowledge of sustainability standards, carbon accounting, environmental data and reporting methodologies.
This could create opportunities for accounting graduates, environmental specialists, data analysts and technology professionals.
For Indian BPO and knowledge process outsourcing companies, the opportunity lies in moving towards specialised knowledge-based services rather than competing only on traditional back-office operations.
Providers that combine sustainability expertise with technology, data security and quality control could build long-term relationships with international businesses.
Why SMEs Are Becoming an Important Market for ESG Services
Smaller businesses are also beginning to recognise the commercial importance of sustainability information.
An SME supplying products to a multinational corporation may be asked to share details about its energy consumption, emissions, waste management and employee policies. Businesses seeking international contracts or institutional financing may encounter similar expectations.
Not every small business is required to prepare a comprehensive sustainability report. However, maintaining reliable information about environmental and social practices can help SMEs respond to customer requests and strengthen their position in supply chains.
This creates an opportunity for ESG consultants and outsourcing companies to develop affordable services for smaller organisations.
Instead of investing in expensive software or hiring a full-time sustainability team, SMEs can seek assistance with basic data collection, emissions measurement and proportionate reporting.
Service providers that offer flexible packages based on business size and industry requirements could find a growing customer base in this segment.
Data Accuracy and Greenwashing Remain Major Concerns
As more companies publish sustainability information, the credibility of their disclosures will become increasingly important.
Businesses need to ensure that claims about carbon reduction, renewable energy, responsible sourcing and employee welfare are supported by reliable evidence.
Exaggerated or unsupported environmental claims can lead to allegations of greenwashing and damage a company’s reputation.
Data security is another consideration, particularly when businesses share operational information, employee records and supplier details with external service providers.
Companies must carefully assess the technical capabilities, confidentiality practices and quality controls of their outsourcing partners.
There is also an important distinction between preparing a sustainability report and independently assuring its contents. Consultants and outsourcing providers may help organise information and prepare disclosures, but independent assurance, where required, must be carried out by an appropriately qualified and independent provider.
Ultimately, external specialists can strengthen the reporting process, but corporate management remains accountable for the information being disclosed.
The Business Outlook for ESG Consultants and Outsourcing Partners
Sustainability reporting is creating a new area of demand within the global professional services industry. Businesses need more than assistance with preparing annual reports; they require reliable systems for measuring performance, managing information and responding to changing disclosure expectations.
This is opening opportunities for ESG consulting firms, accounting companies, BPO providers and technology businesses.
For outsourcing companies, the potential lies in recurring services such as ESG data management, carbon accounting support, supplier assessments and sustainability documentation. Consulting firms, meanwhile, can expand their offerings through regulatory guidance, risk assessments and reporting strategy.
The market will increasingly favour providers that combine technical knowledge with efficient data management and a clear understanding of industry requirements.
For businesses, engaging external specialists can help address skill shortages, improve reporting processes and manage costs. For service providers, sustainability reporting represents an opportunity to develop a specialised business vertical with international relevance.
As companies face growing expectations to demonstrate their environmental and social performance, ESG reporting is becoming an integral part of corporate accountability. The organisations that can measure their progress and present credible information will be better prepared to meet changing business expectations. This is likely to keep ESG consultants and sustainability outsourcing partners firmly on the corporate services agenda.
