environmental-social-governance

ESG and sustainability

Leading in specialties including compliance, risk, controls, assurance, sustainability, decarbonization strategy development and technology consulting, we provide comprehensive environmental, social and governance (ESG) and sustainability advisory that spans solutions for any company, function or challenge.  

ESG and sustainability

  1. Mallory Thomas

    Mallory Thomas

    CPA, MBA, CIA, CITP, CISA

    Partner

  2. Joe Donnelly

    Joe Donnelly

    CPA

    Partner

  3. Ed Mahon

    Ed Mahon

    Principal

  4. Susan Borries Reed

    Susan Borries Reed

    J.D.

    Managing Director

  5. Caitlin Humrickhouse

    Caitlin M. Humrickhouse

    M.P.A., SWP

    Managing Director

As ESG moves from a voluntary opportunity to a regulatory reporting requirement, companies must navigate how to prepare their disclosures for materiality, accuracy and assurance.

The rise of sustainability risks and regulations

Companies face a multitude of emerging regulations and increasing risks surrounding their sustainability disclosures. Baker Tilly provides critical support across the lifecycle from baselining emissions, to setting goals and developing strategies to decarbonize, to assurance and reporting. Setting achievable goals is essential in the ESG reporting space and this can only be done with a strong baseline, benchmarking and technical and economic analysis.

Evolving your sustainability posture

Today, every company is expected to have a robust approach to managing sustainability risks aligned with long-term value creation. Our end-to-end services support clients to right-size their sustainability efforts to yield maximum value across business functions. 

Explore end-to-end corporate sustainability solutions

ESG and sustainability reporting is no longer a voluntary exercise and can be a risk to corporate reputation if done without rigorous analysis, processes, controls, and governance. As regulations evolve, the sustainability disclosures including non-financial data require the same rigor as financial statement reporting to meet investor grade standards. As a trusted CPA firm with a long history in reporting readiness and assurance services, we are uniquely positioned to guide organizations through evolving regulatory requirements and meet the highest standards of data integrity and transparency demands. Our approach recognizes the challenges of integrating sustainability reporting with traditional financial functions and systems. Our engagements include both CPA and sustainability specialists to ensure seamless integration and help companies bridge these two disciplines. Baker Tilly can help organizations prepare for the future of sustainability reporting, today.

  • Reporting
  • Assurance
  • Strategy

Reporting

Organizations face a multitude of emerging regulations and increasing risks surrounding their sustainability disclosures. As environmental, social and governance (ESG) moves from a voluntary opportunity to a compliance process, companies must navigate how to prepare their data collection and reporting for materiality, accuracy and assurance. We help clients understand a myriad of regulations, develop processes and controls to address regulatory requirements and advise the development of disclosures to meet assurance requirements.  

Capabilities: 

  1. Materiality assessments: Assist in the process to identify material ESG and sustainability topics utilizing either a single (financial) or double (financial and societal impact) approach to materiality in compliance with regulations such as the Corporate Sustainability Reporting Directive (CSRD) or standards such as the International Sustainability Standards Board (ISSB). 
  2. ESG and sustainability reporting: Assist with drafting ESG and sustainability disclosures aligned with frameworks such as ISSB or Global Reporting Initiative (GRI), comply with regulatory reporting requirements such as the California Climate Corporate Data Accountability Act, SEC Climate Rule or the European Union’s CSRD and address vendor questionnaires such as EcoVadis or CDP (formerly Carbon Disclosure Project). 
  3. Climate-related risk reporting: Utilizing the Task Force on Climate-related Financial Disclosures (TCFD) framework, assess current risk management processes, identify climate-related risks and opportunities and evaluate their associated impacts. Develop risk responses and mitigation plans considering your organization’s risk tolerance and strategic priorities. 
  4. Greenhouse gas (GHG) emissions reporting: Assist with data gathering and reporting for scope 1, 2 and 3 greenhouse gas emissions utilizing the GHG protocol standards. Develop standard policies and procedures for carbon accounting utilizing Inventory Management Plans (IMP). 
  5. Data solutions: Derive value from data, through advanced machine learning, data visualization and implementing new data to support digital sustainability initiatives and establish a “single source of truth”.  

Assurance

As ESG disclosures are increasingly scrutinized by investors and regulators, third-party assurance is a foundational part of sustainability reporting integrity. As a trusted CPA firm with specialized skills and deep knowledge, third-party assurance provides stakeholders with confidence in the accuracy of data, compliance with regulatory standards and safeguards against allegations of greenwashing.  

Capabilities: 

  1. Assurance readiness: Assess the systems, controls and processes to collect, report and comply with selected frameworks, metrics and regulatory reporting requirements. Support the identification and design of controls over sustainability reporting.  
  2. Limited assurance: Performed under the American Institute of Certified Public Accountants (AICPA) standards, provide limited assurance conclusion over Corporate Social Responsibility (CSR) reports, required disclosures, GHG emissions, ESG and sustainability data, metrics and reporting in accordance with applicable frameworks and standards. 
  3. Reasonable assurance: Performed under AICPA standards, provide reasonable assurance opinion over CSR reports, required disclosures, GHG emissions, ESG and sustainability data metrics and reporting in accordance with applicable frameworks and standards. 
  4. Internal controls: Identify, design and evaluate internal controls over sustainability reporting.  Integrate ESG and sustainability risks into your internal audit plan and assist with the evaluation of related risks. Assist in the development of systems, controls and processes to collect, report and comply with selected frameworks, metrics and regulatory reporting requirements. 

Strategy

Corporate sustainability remains a highly dynamic discipline and best practices are evolving for every industry. As stakeholder expectations for corporate transparency grow, companies must stay ahead of industry trends and peers to realize the full value of sustainability reporting. Action toward an intentional ESG and sustainability strategy will help your organization manage risks, prepare for regulatory reporting and compliance requirements, heighten market competitiveness and ultimately drive growth. 

Capabilities*: 

  1. Current state assessment: Assess current state performance of current policies, procedures, measurement systems and data collection sources through regulatory reporting requirements, frameworks and peer benchmarking. Provide prioritized recommendations to improve performance and address gaps. 
  2. Ratings and questionnaires: Enhance reporting processes to meet vendor and rating agency information requests and improve scoring.  
  3. Target and goal-setting: Develop an ESG and sustainability vision and set goals aligned with the organization’s strategy and based on deep technoeconomic analysis. Develop metrics and targets to establish key performance indicators (KPIs) and collect relevant data to measure, monitor and track progress against the goals.  
  4. Scope 1 and 2 reduction roadmap: Conduct scenario-based technoeconomic analyses to determine the best path for achieving decarbonization goals. Building or leveraging existing GHG baseline data, site, market, and client information to develop scenarios for scope 1 and 2 reductions and building Science Based Initiative (SBI) goals and roadmaps for achieving those goals including energy efficiency, operational improvements and efficiencies, energy generation and storage options. 
  5. Scope 1 and 2 decarbonization strategy: Assess pathways to decarbonization and net zero, strategies for climate resilience, operational efficiency, system energy efficiency, and electrification. These strategies span industries and organizations (ex. industrial, energy, transportation, real estate, finance) and provide a clear pathway to abate emissions through a lens of economic feasibility. 
  6. Energy market analysis: Determine current market opportunities to support decarbonization strategies, including energy procurement analysis, emerging technology analysis, site due diligence and selection, funding and grant support, fleet transition analysis, and regulatory analysis to determine the best levers to support decarbonization.  
  7. Energy feasibility studies: Project-specific determinations of various clean thermal and electrical energy options, including feasibility of solar, wind, landfill gas, renewable diesel and natural gas, carbon capture and storage, battery storage, digital technologies and other technology solutions. Studies also address operational and building efficiency. 
  8. Green cloud services: Transition to green cloud operations with implementations to minimize your firm’s energy consumption, carbon emissions, and resource utilization such as AWS, Oracle, and Microsoft Azure.  
  9. IRA tax advisory: Assess  businesses and projects to determine alignment with IRA funding and provide actionable steps to qualify for available tax credits.  
  10. Tax credit marketplace solutions: If an organization has a surplus of tax credits or seeks to purchase qualifying credits, our Ever.green clean energy product funding and tax credit marketplace provides opportunities to sell and buy tax credits that are vetted, secure and compliant with regulatory requirements.  
  11. Green and social bond designation: Provide support with bond issuance for any type of environmental or social impact designation to improve bond pricing and placement outcomes.  

*Flex capability

We can support implementation of recommendations, address gaps and otherwise provide ongoing support as an outsourced sustainability function. This includes evaluation and implementation of ESG and sustainability software solutions. This provides:  

  • A coordinated approach 
  • Depth and breadth of specialized skillsets and knowledge customized to your needs 
  • Increased efficiency and flexibility 
Blue buildings in a city

California climate reporting regulations are impacting many U.S. companies

The California climate reporting regulations will require many middle market companies to disclose GHG emissions and climate-related financial risks. Is your company prepared?

person looking at tablet

Unlock the power of a sustainability culture

Baker Tilly is proud to sponsor The Conference Board’s latest ESG Center Report: Building a Sustainability Culture. The report paints a compelling picture of where companies are today on their sustainability journey and where they need to go, offering guidance on how to get there.

USA map with particles connection

Energy Community Mapping Tool

The Inflation Reduction Act (IRA) of 2022 has created tax credit opportunities for clean energy projects sited within an energy community in the U.S. Our interactive mapping tool can help you determine if a project might be located in an "energy community".

Media mentions

CORPORATE COMPLIANCE INSIGHTS
ESG becomes a four-letter word
MNCPA Footnote Magazine
ESG: Where do I start?

Connect with ESG leaders

Count on our ESG team to serve as an extension of your organization. We leverage industry specialization to understand the regulatory, operational, financial and organizational pressures that organizations face. Our professionals are dedicated to helping clients drive ESG-related efficiencies, elevating them to become best-placed within their industries.

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