Environmental, Social & Governance
Environmental, Social & Governance
Ed Mahon
Principal
Ethan Bach
Managing Partner, Innovation, Solutions and Corporate Development
Heather Acker
CPA
Managing Partner
Joe Donnelly
CPA
Partner
Kevin Simmerman
Executive Director, Risk Management
Mallory Thomas
CPA, MBA, CIA, CITP, CISA
Partner
Mark Herzinger
Principal
Scott A. Miller
CPA
Partner
Shane Lloyd
Head of Diversity, Inclusion, Belonging and Societal Impact
Shanté George
CIRA
Principal, Chief of Staff
Srinand Yalamanchili
Director
Susan Borries Reed
J.D.
Managing Director
Theresa Meiners
Principal, General Counsel
Thomas E. Unke
CPA
Partner
Let’s build a sustainable future now, for tomorrow.
Environmental, social and governance (ESG) has emerged as much more than a responsibility. It’s an opportunity to build a more sustainable business and a key differentiator to enhance relevancy and trust with organization stakeholders. Built strategically, an ESG program creates valuable impact within your organization, your community and for the planet for years to come.
Why is it important?
A strong and meaningful ESG program can set a vision for an organization’s environmental and societal influence, providing value both internally and externally.
Establishing environmental goals can help reduce your carbon footprint, determine your sourcing strategy and set a foundation for how to eliminate unnecessary waste. From a social impact lens, you can build a meaningful diversity program, enhance employee health and make lasting changes in your community.
And by building a strong governance foundation, you can diversify your board, enhance business ethics, increase stakeholder transparency and protect privacy.
These are a sampling of the many benefits of a strong, customized program that will help your organization reach the sustainability goals that matter most.
Explore our solutions
We understand the complexities organizations face regarding ESG strategy, compliance requirements and stakeholder pressures. We'll meet you where you are. Through an industry-forward lens, we help organizations manage risk, innovate, and create and protect value through detailed execution of ESG initiatives.
- Sustainability strategy and transformation
- ESG risk and materiality
- Climate risk and impact
- ESG reporting readiness
- ESG assurance
- Energy transition
Sustainability strategy and transformation
As stakeholders continue to demand more environmentally and socially responsible products and services, organizations are expected to respond. Your organization’s ESG program needs to be aligned with the overall business strategy and mimic what is material to the firm. Where is your organization on the ESG journey? We can help assess, strategize and execute.
- Education and training: provide ESG education and training to key stakeholders (i.e., board members and executive leaders)
- Strategy development: define ESG-related vision and goals and discuss how they align with organization strategy and purpose with cross-functional organization leaders
- Current state assessment: perform benchmarking, assess current policies, baseline metrics and measurement systems
- Maturity assessment: evaluate your ESG program maturity including readiness to comply with current and forthcoming regulatory requirements
- Governance structure development: develop ESG governance structure, risk management processes and procedure documents and reporting cadence to address climate-related risks
- ESG roadmap development: create an ESG action plan aligned with your organization's priorities and regulatory requirements
ESG risk and materiality
Today, organizations can face many emerging risks, including operational, transitional, climate-related, compliance/regulatory and financial, which can create significant challenges if not addressed. In the context of your organization’s operations and strategic plans, performing an ESG risk assessment can identify environmental, social and governance elements while incorporating the associated materiality and reporting requirements (e.g., SASB/GRI), as applicable. Be proactive, stay ahead of the competition and ensure your organization is set up for success.
To do so, we will:
- Utilize surveys, interviews and workshops with stakeholders to identify and assess ESG elements
- Prioritize ESG elements and develop mitigation and action plans
- Communicate results through an assessment report and assist with the development of your reporting capability
- Assist with the integration of ESG into enterprise risk management governance and oversight processes
Climate risk and impact
Organizations are facing regulatory, reputational and financial risks due to an increase in climate transparency requirements. Take action to identify climate-related risks and potential impacts to your organization and develop a risk mitigation plan to help you comply with material regulatory requirements.
We’ll assist by:
- Administering questionnaires, performing interviews and hosting workshops to identify and assess climate-related risks and their associated potential and real impacts
- Developing risk responses and opportunity plans considering your organization’s risk tolerance and strategic priorities
ESG reporting readiness
There is increased stakeholder pressure on organizations to report on ESG metrics, which requires input from various departments within an organization, including operations, HR, legal, IT, risk and compliance. Because of the cross-functional nature of ESG reporting, data collection, consolidation, analysis and management are often difficult and time-consuming tasks. Our specialists understand your industry and data management needs. We’ll work together to gather your ESG data, analyze the metrics to help guide ESG priorities and track progress.
- Greenhouse gas (GHG) emission reporting: assist with data gathering and report preparation for carbon accounting and reporting GHG emissions (scope 1, 2 and 3) utilizing the GHG protocol to comply with regulatory requirements (e.g., SEC, FAR, CSRD, SFRD, ISSB), as applicable
- Data validation: assist with reporting preparation including data validation to comply with selected frameworks, metrics and reporting requirements
- SOX and internal controls: identify and design internal controls over sustainability and ESG reporting to comply with regulatory requirements (e.g. SEC, FAR, CSRD, SFRD, ISSB), as applicable
- Metrics, targets and analysis: establish key performance indicators (KPIs) and collect relevant data to measure, monitor and track progress against sustainability goals
- Technology solutions: evaluate technology solutions for ESG and sustainability reporting (e.g., ESG reporting, data management and GHG/carbon accounting)
- ESG and sustainability report development: develop report templates, outlines and content for internal and external reporting
ESG assurance
After investing significant resources into sustainability reporting, ensure your data is accurate and in compliance with regulatory requirements, and mitigate the risk of greenwashing accusations with third-party assurance.
- Independent reporting assurance: Provide independent assurance of Corporate Social Responsibility (CSR) reports, GHG emissions, and sustainability/ESG reporting and data
- Internal audit alliance: Integrate ESG risks into your internal audit plan and assist with the evaluation of related risks and internal audits
Energy transition
Regulatory changes, decarbonization initiatives, environmental and consumer activism and new technologies are driving the global shift and demand for sustainable business. We can help your organization stay ahead by strategizing and taking action on your energy transition commitments.
- Energy transition services: develop the strategy and roadmap with a lens to enterprise program management
- Net zero strategy: develop the pathway, process and reporting to meet net zero commitments for your clean energy transition
- Renewable energy solutions: identify optimal development structures and understand the requirements from concept to completion for both developers and distributors
- Ever.green: leverage the leading clean energy project funding and tax credit marketplace to buy and sell tax credits that are vetted, secure and compliant with regulatory requirements
Guiding insights
Proposed FAR amendment would increase GHG emissions reporting requirements for federal contractors
The proposed amendment to the Federal Acquisition Regulation (FAR) will increase the transparency of climate-related information reported by federal contractors. Significant and major contractors will be required to disclose scope 1 and scope 2 GHG emissions with additional requirements for major contractors.
Is your internal audit function ready for ESG?
As the environmental, social and governance (ESG) landscape evolves, internal audit’s role is adapting to address emerging risk areas within an organization.
Aligning ESG risks with existing ERM program key for creating value, attracting talent
A successful environmental, social and governance (ESG) strategy should build on your existing enterprise risk management (ERM) program and align with an organization’s strategic initiatives and priorities.
Jump-start your sustainability road map with an ESG maturity assessment
Before building a strategic and intentional sustainability roadmap, an organization must assess the current state of ESG maturity against four levels – initial, growth, operational and transformationalHow to prepare for the proposed SEC climate change disclosure
As organizations await the final SEC climate change disclosure ruling, there are three steps to take to prepare for these requirements, while keeping ESG governance, strategy risk management and targets in mind. Are you prepared?
Supreme Court’s West Virginia v. EPA decision limits regulatory power of the agency
The Supreme Court decision in the case of West Virginia v. the Environmental Protection Agency (EPA) limits the power of the EPA. The EPA does not have the power to enforce regulations limiting companies’ carbon emissions unless it obtains explicit authorization from Congress to do so.
SEC votes to propose much-anticipated rule requiring climate disclosures
The SEC voted to proceed with a much-anticipated rule proposal that includes mandatory climate related disclosures, with wide-ranging impacts to domestic and foreign registrants.
SEC 2021 exam priorities: climate change, ESG and cybersecurity
The 2021 SEC examination priorities, affecting all SEC-regulated firms, emphasize climate change and environmental, social and governance (ESG)-related risks, and cybersecurity.
ESG issues: to report or not to report?
Securities and Exchange Commission (SEC) Chairman Jay Clayton recently said that public companies shouldn’t be required to disclose information concerning environmental, social and governance (ESG) matters in their financial statements using a standardized format.
How ESG can shape an organization's sustainability
A strong ESG program can help shape an organization’s sustainability by reducing costs, managing and mitigating risks, and attracting and retaining talent. Understand why organizations are falling short on their sustainability journeys and how you can kick-start your ESG program with a few simple steps.
Baker Tilly achieves approved verifier status for green bonds in the U.S.
Have you explored green bonds as a means to broaden an investment pool and advance sustainability initiatives? As an Approved Verifier certified by the Climate Bonds Initiative, we help governments and companies secure financing through green bonds for projects that address climate change.
Media mentions
"At Baker Tilly, building a sustainable future is who we are at our core. Our talented professionals are dedicated to developing and guiding our clients on their ESG journey now, for tomorrow."Theresa Meiners, ESG Practice Leader
Client stories
Controlled Thermal Resources builds a foundation to align ESG strategy with business strategy
Controlled Thermal Resource (CTR) proactively aligned sustainable business goals to an ESG strategy, resulting in a strong foundation for the company’s future state ESG disclosures.
Private equity firm packages existing initiatives to build ESG strategy
Private equity firm serving middle-market businesses builds an ESG strategy by evaluating existing initiatives and prioritizing topics relevant to investors.
Manufacturing and kitchen design company begins their ESG journey
Food service business manufacturing and service provider creates an ESG policy and framework to meet critical stakeholder needs and to streamline and enhance RFP submissions.
Metlakatla Indian Community keeps the lights on and replenishes resources by restructuring their utility
The Metlakatla Indian Community in southern Alaska faced the prospect of the lights going out due to climate change, loss of industry and outdated, inflexible management protocols. Learn how Baker Tilly’s tribal services team mitigated the immediate crisis and developed a new management structure to better equip future generations to face the energy challenges ahead.
Seneca Nation continues quest for energy independence
The Seneca Nation sought Baker Tilly’s tribal energy consultants for development of a strategic energy plan. Learn how the Nation is making strides toward sustainable energy independence, utilizing green energy and existing fossil resources to develop their community and protect future generations.
Baker Tilly imprints – 2022 annual report
ESG is not a checkbox for Baker Tilly
To us, ESG means erasing the boundaries between company, client, community and planet. It means understanding how our organization can do its part to help nurture a more connected world.
We intend to dedicate ourselves to making a difference inside and outside our organization. Our impact will be traceable through our footprints and fingerprints and will leave a legacy that will last Beyond Tomorrow.
Learn more about Baker Tilly’s ESG program – what we impact