The Case for a Fractional CSO: Executive Sustainability Leadership Without the Full-Time Cost
A Fractional CSO gives organisations access to executive-level sustainability expertise without a full-time commitment. Sustainability expectations are rising. Investors, customers, employees, regulators, and stakeholders expect credible progress, clear reporting, and stronger sustainability leadership. Many businesses understand this shift. They see the need for ESG strategy, reporting, and governance. But they face a practical constraint. They do not have the budget, or the immediate need, for a full-time Chief Sustainability Officer (CSO), or at least someone with the deep experience to be able to accomplish such a broad range of projects (and understand how it fits with the business strategy). A Fractional CSO closes that gap. It gives businesses access to senior sustainability leadership without committing to a full-time hire. This allows businesses to move forward with structure and clarity without incurring fixed costs or long recruitment cycles. What does a Fractional CSO do? A fractional executive is an experienced professional who works with a business on a part-time or project basis. Instead of being employed full-time, they are engaged for the hours they work or the outcomes they deliver. This gives businesses access to executive and often C-suite level expertise without the cost and long-term commitment of a permanent hire. Fractional executives often work across multiple organisations. This also allows them to bring insights from different industries and operating environments into each engagement. At its core, the role focuses on helping organisations define, structure, and execute sustainability initiatives in line with broader business objectives. This typically includes: So the engagement of a Fractional CSO adapts to the business needs, and their involvement can be scaled up or down as needed. Because Scope 1 sits entirely within a company’s own operations, it is the most straightforward to measure and the most immediate to act on. What to look for in a Fractional CSO: skills and expertise Not every sustainability consultant is suited to an executive position. A Fractional CSO needs to operate at the same level as any senior leader in the business, someone who can sit alongside a chief executive officer and other senior executives, not just advise from the sidelines. That means technical expertise across ESG criteria, regulatory compliance, and sustainability projects, paired with the interpersonal skills to engage diverse stakeholders, from the board to external stakeholders like investors and regulators. Strategic thinking matters as much as subject knowledge. The role isn’t limited to reporting on relevant risks or tracking sustainability issues in isolation, it’s about integrating sustainability into how the business actually makes decisions. A good Fractional CSO connects environmental impact and social responsibility to commercial outcomes, playing a key role in shaping direction rather than simply documenting progress. The main benefits of a Fractional CSO A Fractional CSO gives businesses access to senior sustainability leadership without the cost, risk, or rigidity of a full-time hire. It allows organisations to move faster, align teams, strengthen reporting readiness, and build momentum across strategy, governance, and commercial outcomes. A Fractional CSO gives access to senior sustainability expertise without the cost of a full-time executive. Instead of paying a full salary, benefits, and recruitment costs, organisations engage the role based on hours or outcomes. This allows resources to be used more efficiently while still gaining C-suite level input. It also reduces financial exposure as there is no long-term commitment and engagement can adjust as needs change. Sustainability challenges often come with regulatory deadlines, stakeholder pressure, or transformation timelines. A Fractional CSO can start quickly. They can assess the situation, identify priorities, and move into execution without long onboarding periods. This contributes to faster progress on strategy, reporting readiness, and implementation. Sustainability does not sit in one department. It cuts across the organisation. A Fractional CSO aligns leadership around a shared direction. They connect sustainability to finance, risk, operations, and marketing. This creates consistency. Decisions follow a clear framework and priorities stay visible across teams. A Fractional CSO helps organisations identify ESG risks, prepare for regulatory change, and build the structures needed for compliance. They support reporting and disclosures by defining what needs to be measured, establishing data collection processes, and aligning outputs to recognised frameworks. A CSO also ensures information is consistent, decision-ready, and suitable for investor and regulatory scrutiny. This turns sustainability performance into clear, structured reporting that stakeholders can understand and trust. An important role of a Fractional CSO is to strengthen communication with stakeholders. That typically means translating complex sustainability data into clear insights. They also build internal capability. Through coaching, training, and structured frameworks, they help teams understand and execute sustainability initiatives. This creates the momentum organisations need to move forward with confidence and consistency. When a Fractional CSO makes sense A Fractional CSO may be most effective where focused, senior sustainability leadership can accelerate progress but full-time capacity is not required. It makes sense when ESG regulations are changing and require immediate attention. It may also fit during periods of transition, such as restructuring, acquisition, or growth, and when businesses are facing increased stakeholder expectations that need a structured response. Engaging a Fractional CSO also allows organisations to test CSO-level support before committing long term, and helps build internal capability for ongoing sustainability management. In these situations, a Fractional CSO provides targeted expertise without long-term commitment. How the role adapts across company size and sector There’s no single job description for a Fractional CSO, responsibilities vary depending on company size, sector, and how mature a business’s sustainability approach already is. A manufacturer managing a complex value chain and energy consumption across multiple sites has different needs to a services business focused mainly on governance and ESG reporting. Australian businesses in particular face a growing set of relevant regulations, and the right level of support depends on how exposed a business is to those requirements. For some organisations, this means a narrow, technical focus, improving energy efficiency, ensuring compliance, or preparing for a specific reporting deadline. For others, it means a broader mandate: embedding sustainability into company mission, culture, and long-term strategy across a diverse set of
Scope 1, 2 and 3 Emissions Explained: What They Mean and Why They Matter
You cannot manage what you cannot measure. For businesses serious about climate action, the Greenhouse Gas Protocol provides the framework to do both, organising all greenhouse gas emissions into three scopes that together cover a company’s full climate impact. Here is what each scope means, why all three matter, and how understanding them positions your organisation to manage risk, meet compliance obligations, and build a sustainability strategy that creates lasting business value. Scope 1 Emissions and the Framework That Defines Them The Greenhouse Gas Protocol Corporate Standard organises all emissions a business is responsible for into three scopes, providing organisations with a consistent and credible basis for measurement. Scope 1 is where most start: direct GHG emissions from sources the organisation owns or controls. These fall into four categories: Because Scope 1 sits entirely within a company’s own operations, it is the most straightforward to measure and the most immediate to act on. Scope 2 Emissions: What Your Energy Bills Are Really Costing the Climate Every time your business draws from the grid, someone else burns fuel to generate it. Scope 2 emissions come from purchased electricity, steam, heat, or cooling and while they physically occur at the power station, they are attributed to the organisation consuming the energy. The GHG Protocol Scope 2 Guidance sets out how organisations measure and report these figures consistently. For most businesses, purchased electricity is the biggest Scope 2 source. The greater the reliance on fossil-fuel-generated energy, the higher the figure. Switching to renewables and improving energy efficiency are the most direct ways to bring it down. Scope 3 Emissions: Where Most of Your Climate Impact Actually Lives Scope 3 covers all other indirect emissions across a company’s value chain. It is often the largest category and the hardest to control, but it is also where the biggest opportunities to reduce emissions sit. The GHG Protocol Corporate Value Chain (Scope 3) Standard provides the methodology organisations use to account for and report these emissions. Upstream emissions Are tied to everything that happens before goods or services reach your business: Downstream emissions Are tied to everything that happens after your products leave: For most organisations, Scope 3 is not just the largest emissions category, it is the one with the most untapped potential. Businesses with complex supply chains or sold products with high energy consumption during use will almost always find their greatest reduction opportunities here. Measuring All Three Scopes: Why Partial Reporting Is Not Enough The three scopes are mutually exclusive within a single inventory, meaning there is no double-counting. Together they cover everything: Many organisations start with Scope 1 and 2 because they are simpler to quantify. But stopping there means leaving the largest share of emissions unaccounted for and the greatest reduction opportunities untapped. An organisation’s power to drive change does not stop at its front door. Measuring and influencing emissions across the full value chain is where meaningful impact happens. A complete inventory covers all three scopes, and building one means defining the organisational boundary and systematically gathering fuel records, energy bills, fleet data, travel logs, and supply chain data. The GHG Protocol’s 15 Scope 3 categories provide the framework to make that process manageable. Scope 1, 2 and 3 Reduction Targets: Where Compliance Meets Competitive Advantage Addressing only Scope 1 and 2 leaves the majority of a company’s climate impact unmanaged. Real progress requires action across all three: Investors, regulators, and customers increasingly expect targets across all three scopes. The Science Based Targets initiative requires Scope 3 targets where those emissions represent 40% or more of total emissions, a threshold most companies exceed. In Australia, mandatory climate-related financial disclosures commenced 1 January 2025 under the Corporations Act 2001, with requirements extending to additional entities through to 2027. Compliance is the floor, not the ceiling. Organisations that go beyond minimum obligations and build a credible, full-scope emissions strategy are the ones that will attract investment, retain customers, and lead their industries. Learn how TGA helps businesses move from compliance to opportunity. Let’s Turn Your Emissions Data into a Strategy At The Growth Activists, we help Australian businesses measure their full emissions footprint, build credible inventories, and turn strategy into real progress across all three scopes. Whether you are just starting out or strengthening an existing approach, we are ready to move with you. Get in touch today to find out how we can support your carbon and climate strategy.
What Is ESG In Business?
Businesses today operate in a landscape where long-term success is measured by more than financial performance alone. Investors, customers, employees, and regulators are increasingly focused on not just what organisations do, but how they do it, and how they manage their environmental, social, and governance responsibilities. ESG stands for Environmental, Social, and Governance, three interconnected pillars that reflect how a business creates both qualitative and quantitative value, ultimately improving the bottom line. More than a reporting framework, ESG is a strategic approach to building resilient, purpose-driven organisations that are equipped to lead in an inclusive and regenerative economy. ESG Principles in Practice: Building a Comprehensive ESG Strategy Now that we have covered what ESG is and why it matters, here is how organisations translate that understanding into a strategy that drives real impact. Understanding ESG principles is one thing. Embedding them into business operations is another. A comprehensive ESG Strategy starts with materiality, identifying the ESG issues most relevant to the organisation, its stakeholders, and its industry. A manufacturing business may prioritise greenhouse gas emissions and energy efficiency, while a professional services firm may focus on governance, ethics, and workforce wellbeing. According to the IBM Institute for Business Value, organisations that embed sustainability into their operations had a 16% higher rate of revenue growth and were 52% more likely to outperform their peers on profitability. From there, organisations should: When organisations move from strategy to action, ESG becomes a platform for building resilience, driving sustainable growth, and strengthening organisational credibility. What Are ESG Factors? To fully understand what ESG means in practice, it helps to look at each pillar individually. ESG factors are the measurable criteria used to assess a company’s sustainability performance, risks, and long-term resilience. Together, these ESG dimensions provide a broader view of how organisations create long-term value (rather than just profit) while managing risk and responsibility. Understanding these factors is the first step toward building a business that is not just sustainable on paper, but genuinely resilient and ready to turn purpose into lasting impact. Why Is ESG Important for Businesses? Understanding what ESG is, is only part of the picture. Knowing why it matters is what drives organisations to act. Strong ESG performance can improve access to capital, as investors and sustainable funds increasingly use ESG criteria to guide investment decisions. Businesses with clear ESG commitments are often seen as better positioned for long-term resilience and value creation because they have considered short, medium, and long-term scenarios. Evidence also shows they are given a higher financial value during M&A deals, with a study in the International Journal of Finance & Economics finding that strong ESG performance consistently enhances bid premiums in corporate transactions. ESG also plays an important role in risk management. From climate-related disruptions to governance failures and reputational risks, organisations that proactively address ESG factors are better equipped to identify and manage potential challenges before they escalate. Understanding your exposure across Carbon and Climate and Supply Chain and Responsible Sourcing is a critical first step. At the same time, stakeholder expectations continue to rise. Customers, employees, investors, and communities increasingly expect businesses to operate responsibly, accountably, and ethically. Building a structured approach to Stakeholder Engagement helps organisations strengthen trust, engagement, and brand reputation over time. Regulatory requirements are also evolving rapidly, with mandatory ESG disclosures now expanding across Australia, the EU, UK, US, Canada, Japan, and beyond. Organisations that integrate ESG into their operations today will be better prepared for future compliance and reporting obligations. ESG Reporting and ESG Frameworks Once you understand what ESG means, the next step is understanding how organisations communicate their ESG performance formally. Transparent ESG reporting helps organisations communicate their performance, metrics, and progress to stakeholders, investors, and regulators. Choosing the right framework is a strategic decision that shapes how your organisation builds credibility and meets evolving disclosure obligations. Learn more about how TGA supports businesses with Reporting and Compliance. Several globally recognised frameworks guide ESG disclosure: A strong ESG strategy aligns with recognised reporting frameworks to ensure disclosures are credible, consistent, and transparent, turning compliance into a platform for continuous improvement. How to Implement ESG in Business Once you understand what ESG is, the next step is knowing how to put it into practice. Implementing ESG requires a structured approach aligned with your strategy, stakeholders, and long-term objectives. Start by assessing your current practices with an ESG Audit and Gap Analysis, then develop a clear ESG strategy that reflects your business goals and level of ambition. Engage leadership, employees, investors, and partners early to build alignment and accountability. Embed ESG into daily operations, governance structures, and decision-making, and track progress through ongoing monitoring and transparent reporting. ESG works best as a whole-of-organisation commitment. Building internal capability through ESG Education ensures your team is equipped to drive meaningful, lasting change from within. Take the Next Step Toward Sustainable Business ESG has become a strategic imperative that influences investment decisions, regulatory obligations, stakeholder relationships, and long-term value creation. At The Growth Activists, we support courageous organisations in turning ESG ambition into practical action. From ESG strategy and reporting frameworks to B Corp Certification, we work alongside businesses to integrate sustainability into everything they do. If you are ready to become a genuine force for good, get in touch with The Growth Activists today.
ESG in 2026: The 5 things you need to get right
ESG is noisy right now. Not because it is going away, but because it is growing up. The expectations are sharpening. The commercial stakes are rising. And the work is moving from sustainability teams into finance, risk, procurement, operations and the boardroom. Here we unpack the five priorities shaping ESG in 2026, and the moves organisations can make now to stay ahead. Economic Essentials The economic case has shifted. The question leaders are asking is no longer what is the cost of transition. It is what is the cost of delay. Deloitte Access Economics modelling shows that transitioning to net zero by 2050 adds $435 billion to Australia’s GDP^. The same modelling cites a $370 billion GDP boost under a 75% emissions reduction target by 2035, with Australia $500 billion better off by 2050. Then there is the capital signal. Responsible investment and sustainable finance are scaling quickly. Current estimates are that the sustainable finance market was about USD 754 billion in 2024 and could reach about USD 2.59 trillion by 2030*, with around 23% annual growth through 2030. What it means is simple. Capital is increasingly pricing performance, not promises. What to do now Regulation Rising Mandatory reporting is not just more work. It is a reset of accountability. Sustainability reporting is already mainstream for the world’s largest companies, with 96% of the G250 reporting, and more than 300 new global regulations introduced since 2019. The direction of travel is clear, even as some jurisdictions adjust timelines and scope. In Australia, mandatory climate reporting under the Corporations Act commenced from 1 January 2025 for the largest organisations, with a phased rollout beginning with $500 million plus entities as the first cohort. The hardest part is not finding the data. It is building governance and capability so disclosures are credible, consistent and ready for assurance. What to do now Systemic Synthesis Fragmented ESG activity will not survive 2026. Systems will. Only 6% of businesses have full traceability in their supply chains. That means most organisations still do not have clear visibility into what is happening at the start of their value chain. At the same time, procurement is tightening. 81% of global trade professionals now use ESG criteria as a primary filter when selecting suppliers. ESG data is becoming a gatekeeper for revenue. This is why the concept of systemic synthesis matters. Instead of collecting ESG data in fragments for different demands, organisations need to stitch it into a single intelligence system that can serve multiple needs across reporting, due diligence, procurement, customer transparency and innovation. Digital Product Passports are one clear example of where this is heading. They have been scheduled to become mandatory in the EU for batteries and textiles from 2027, moving provenance from static documentation to machine readable cradle to grave transparency. They also open circular opportunities like resale authentication, repair enablement and even royalties on second hand transactions. What to do now Value Velocity This is where ESG flips from defence to growth. 2026 is a tipping point where ESG must move from cost of compliance to a rapid driver of value. Market leaders are using sustainability as a performance engine, strengthening enterprise value, winning procurement, and building trust that translates into commercial momentum. Governance maturity is part of the valuation signal now. Recent evidence proves that two thirds of dealmakers pay premiums~ for strong ESG governance, with valuation uplifts of up to 10% when governance resilience can be proven. This is why we challenge teams to do more than report. We want ESG to be embedded and bankable, and we want it to show up in how the business is run. What to do now Transformative Tech AI can be a strategic enabler for ESG. It can process large datasets, support real time monitoring, and make Scope 3 work more manageable. It can also free teams from retrospective reporting so they can spend more time on strategy and transformation. But AI only helps if governance leads. Setting up the guardrails that matter most: accuracy, data ethics and ownership, bias, auditability, and the energy-consumption realities of advanced technology in the context of decarbonisation goals. The opportunity is real. The risk is also real. The organisations that lead will treat AI as part of ESG governance, not separate from it. What to do now Capability is the multiplier ESG training is still fragmented, especially for people outside finance. If you want ESG to stick, build capability across finance, procurement, operations, marketing and sales, not only within the sustainability team. If 2026 is the year ESG becomes normal business, the work is not doing more. It is doing it smarter, with stronger governance, better systems, and clearer value. Contact us to find out what this might look like for your organisation.
Navigating ESG Strategies
A practical guide for businesses to build and implement ESG strategies that align with stakeholder expectations, regulatory demands, and long-term commercial goals.
New B Corp Standards: What the new standards mean for businesses
B Lab has introduced new standards for B Corp certification that represent a significant shift for businesses that prioritise purpose over profit while driving commercial value. For many businesses, B Corp certification has always been more than a badge. It’s a framework for aligning strategy, operations, and culture to drive commercial value while demonstrating good impact for people and the planet. B Lab was founded in 2006 with the mission to create standards, policies, tools, and programs to help organisations drive high standards of social and environmental performance, accountability, and transparency. The certification was set up to drive a shift towards conscious capitalism, enabling for-profit businesses with a governance framework that considers all stakeholders, including the environment, in everyday decisions and strategic planning. B Lab’s certification standards have continuously evolved since 2006, with version six released in January 2019. In 2020, B Lab launched a comprehensive multi-year review of the version six standards with the goal of implementing new certification standards designed to raise expectations, strengthen credibility, and align the certification more closely with global ESG regulations. The result is a new B Corp certification framework (Version 7) released in April 2025, with full transition by September 2026. This represents a significant shift in the B Corp certification process. As the leading B Consultancy in Australia and New Zealand, with six B Lab-trained consultants, The Growth Activists helps businesses turn certification into commercial value under these new standards. What’s Changing? From Points to Performance Under the previous B Corp model, certification was based on a points system. Businesses could score across five impact areas: Workers Suppliers Community Governance Environment A total of at least 80 points out of a possible 200 was required to submit for certification. This allowed flexibility. Companies could excel in one area, boosting points, whilst in another area they may score less. This showed organisations where they needed to focus on impact improvement. Over time, that flexibility led to growing concerns about inconsistency, credibility, and greenwashing. For example, a company might score highly on employee engagement while having less climate action or supply chain oversight. The system rewarded overall scores, not balanced performance. In response, B Lab launched the multi-year review to implement new certification standards designed to raise expectations, strengthen credibility, and align the certification more closely with global ESG regulations. The result is an updated framework that has moved the B Corp certification process from a focus on flexibility to balanced accountability. The updated standards are clearer, more consistent, and better suited to distinguishing businesses that genuinely prioritise purpose over profit and can demonstrate it in practice across all aspects of the business. Rather than the points-based system, which is being phased out, under the new standards, every business must meet clearly defined minimum performance requirements across seven core Impact Topics. It is no longer enough to lead in one or several areas. Certification now depends on meeting the bar in every category. The 7 New B Corp Impact Topics Under the new standards, every business must meet clearly defined minimum performance requirements across seven core Impact Topics, including: Purpose & Stakeholder Governance: Ensures the business is legally accountable to all stakeholders, not just shareholders, and integrates purpose into its mission, governance, and oversight structures. This is about ensuring your business makes decisions that benefit everyone it affects, not just the people who own it. Fair Work : Requires businesses to create safe, fair, and respectful workplaces by supporting worker voice, ensuring strong employment practices, and promoting equitable compensation and conditions. In other words, businesses have a responsibility to treat workers well, pay them fairly, and give them a real say in the workplace. Climate Action: Requires businesses to measure and reduce their greenhouse gas emissions, and develop plans to transition to a low-carbon future. It’s a key part of an organisation’s plan to reduce its carbon footprint and become a positive force in the fight against climate change. Circularity & Environmental Stewardship: Promotes responsible use of materials, waste reduction, and the design of circular business models that minimise environmental impact. At its core, circularity is about businesses finding ways to use resources wisely, create less waste, and keep materials in use for longer. Justice, Equity, Diversity & Inclusion: Encourages the creation of equitable systems and inclusive cultures through leadership accountability, representation, and fair opportunity practices. Simply put, businesses have a responsibility to make sure everyone gets a fair go without facing discrimination. Human Rights: Mandates that companies identify, prevent, and address risks of human rights harm within their operations and supply chains. This is all about businesses protecting the human rights of all people involved throughout the entire manufacturing process from beginning to end. Government Affairs & Collective Action: Encourages companies to engage ethically in public policy, contribute to industry progress, and collaborate with peers, partners, and communities to drive systemic change for good. The goal is to build community, speak up for change, and find ways to work with other organisations to drive common good. Supporting B Corp Certification: A Collaborative Approach The new standards come with higher expectations, and businesses will need to show that positive impact is embedded across all operations and decision-making. For many companies, this has raised an important strategic question: How to meet the requirements in a way that supports their broader commercial goals, brand reputation, and long-term direction. At The Growth Activists, we’ve designed our collaborative B Corp certification process around this critical focus. Some are looking to ensure compliance with B Corp standards. Others want to integrate impact more deeply into operations and use certification to compete more effectively in their sector. And some are ready to lead in the ESG space by setting ambitious targets, driving innovation, and reshaping industry expectations. We help businesses make an intentional choice about where they want to sit on the spectrum, and why. That decision then informs every aspect of the roadmap we build together, from how we phase the work and the resourcing required, to the
What is an ESG Consultant? Insights from The Growth Activists’ ESG Expert, Kirsty Simmonds
Organisations are increasingly recognising the business value and commercial advantages of strong ESG (Environmental, Social, and Governance) practices. Good ESG is no longer a “nice to have,” it’s a strategic necessity that shapes business resilience, unlocks market opportunities, and strengthens stakeholder trust. Yet, while the importance of ESG is clear, many businesses lack the in-house expertise to make it happen. This is where ESG consultants step in. They provide the clarity, data-driven insights, and tailored solutions needed to embed ESG into business strategy, ensuring compliance, mitigating risks, and driving long-term value creation. ESG consulting goes beyond regulatory checklists—it delivers measurable impact, aligns organisations with global standards, and positions them for sustainable growth. What is an ESG Consultant? An ESG consultant helps organisations integrate environmental, social, and governance principles into their operations and decision-making. According to Kirsty Simmonds, ESG Practice Lead and B Consultant at The Growth Activists, “An ESG consultant advises on practices across a spectrum—from meeting mandatory ESG reporting standards to implementing global best practices. Where an organisation chooses to sit on this spectrum is a strategic decision.” She adds, “Our role includes sustainability reporting, ESG data analysis, risk assessments, and materiality assessments to identify focus areas. We assist organisations with strategy development, compliance, and operational improvements that align with business priorities and stakeholder expectations.” Kirsty and her team at The Growth Activists are experienced sustainability and ESG consultants who blend deep expertise with a strong commercial focus. They integrate business and ESG strategy practices to create strategies that drive both positive impact and long-term value creation. Their advice is always commercially realistic and forward-thinking, recognising that a sustainable business must also be a successful one. Common ESG Services: Education & Training: From boardroom briefings to operational upskilling, building ESG knowledge across teams. Analysis & Benchmarking: ESG maturity assessments, performance benchmarking, and risk management reviews. Materiality Assessments: Identifying ESG factors that matter most to your business and stakeholders. Strategy Development: Aligning ESG initiatives with business strategy and measurable KPIs. Operational Support: Carbon accounting, reducing greenhouse gas emissions, embedding sustainable practices, and enhancing governance. Certification & Reporting: Support with ESG reporting standards such as GRI, B Corp, UN PRI, and integrated reporting. Stakeholder Engagement & Communications: Building trust, delivering thought leadership, and transparent sustainability reporting. What is an ESG Consultation? An ESG consultation typically starts with data collection and an assessment of a company’s current approach to sustainability. This includes identifying areas of risk and opportunity, aligning with ESG reporting frameworks such as the Global Reporting Initiative (GRI) or Task Force on Climate-related Financial Disclosures (TCFD), or regulatory requirements such as Mandatory Climate Reporting,and providing strategic guidance to evolve practices, comply, excel, and even troubleshoot problems. At The Growth Activists, ESG consulting follows a structured three-step approach to ensure each step is data-rich and informed by the previous step: Audit and Plan: Benchmark ESG performance across environmental impact, social responsibility, and governance using tools like the B Impact Assessment. Operationalise Improvements: Develop ESG strategy, embed sustainability efforts, and set measurable targets. This includes ESG policy design, risk mitigation, and compliance with regulatory requirements. Embed and Engage: Drive community engagement, integrate ESG reporting standards, and prepare for climate-related financial disclosures. “We simultaneously embed stakeholder engagement practices within the business, because this is essential for good practice and optimal impact (including for positive financial impact for the business). Increasingly, our approach includes preparation for regulatory reporting, in particular new Mandatory Climate Reporting in Australia, and preparing businesses that must provide data for their customers’ regulatory reporting in other countries, especially the EU where reporting is broader and deeper than in Australia,” Kirsty notes. Top sustainability and ESG consulting firms deliver an integrated approach that leads to measurable improvements in ESG performance. Is ESG Consulting a Good Career? With climate change and sustainable practices dominating boardroom agendas, ESG consulting has emerged as one of the fastest-growing professions worldwide. Driven by climate change legislation, mandatory ESG reporting, and modern slavery regulations, demand for ESG specialists continues to surge, making their role essential for a sustainable future. According to industry reports, ESG roles have grown sharply due to investor demand, employees’ expectations for responsible business practices, regulatory shifts, and a corporate focus on sustainability. ESG consulting provides dynamic, meaningful work in areas like policy development, risk management, and ESG software implementation—making it a truly rewarding and impactful career. “It is a great career if you are driven by making an impact, because this is a role in which you can have a clear, measurable impact while focusing on a subset of ESG that you love most,” Kirsty shares. How Much Does an ESG Consultant Cost in Australia? Salary expectations vary widely while consulting firms offer competitive packages based on experience and specialisation. Kirsty advises: “Be clear with the work environment and culture that suits you, where you can do your best work and focus on that. If you enjoy your work, your colleagues and your environment, it carries a ‘value’ far higher than a financial figure.” Essential Skills Required to Become an ESG Consultant The ESG consulting field requires a unique blend of skills, including: ESG data analysis and sustainability strategy development Familiarity with ESG reporting standards and regulatory frameworks Expertise in risk assessments and policy development Ability to align ESG considerations with business priorities and capital markets expectations Strong communication and stakeholder engagement Specialisations such as climate change mitigation, environmental management, and decarbonisation strategies are increasingly valuable. Measuring the Impact of ESG Strategies A sustainability and ESG consultant uses both qualitative and quantitative metrics to track progress. This may include: Environmental: Reduction in carbon emissions and greenhouse gas emissions, progress in carbon accounting. Social: Modern slavery risk mitigation, workforce wellbeing, and community engagement initiatives. Governance: Improved compliance, transparency in reporting, and stronger governance structures. Kirsty summarises: “A good test is to imagine the damage that can be done, which is not difficult to think of scenarios, then impact can be measured by doing the opposite to mitigate, remediate or prevent.” By reporting on
Why Governance Matters More Than Ever
“The fashion industry is increasingly targeted as needing major reform to bring it into the circular economy world.” This article was first published on The Fifth Estate, Australia’s leading online news source for sustainability and ESG in the built environment. As I conclude my term as acting Independent chair of Seamless, Australia’s clothing stewardship scheme, I’m reminded more than ever of the vital role governance plays in shaping a future that honours both present realities and long-term objectives. Seamless is Australia’s clothing stewardship scheme and the world’s first circular product stewardship scheme. It aims to make Australian clothing circular by 2030 and significantly reduce the 222,000 tonnes of clothing that currently go to Australian landfills each year. We help Australians choose, enjoy and recycle clothing more responsibly by working together with retailers and key stakeholders so that people and nature thrive. We are building a critical mass for collective progress, with nearly 60 brands and retailers registered as stewards, and more than 110 supporter organisations across the clothing value chain. In these complex and often turbulent times, balancing today’s needs with tomorrow’s aspirations is not simply a duty, but a strategic imperative demanding the attention of every Director across every Board. Governance, at its core, establishes the rules, practices and processes that ensure accountability, transparency, and ethical behaviour in the pursuit of an organisation’s objectives. It’s the framework that guides decision-making and ensures things are run well. At Seamless, robust governance is foundational for ensuring sound and sustainable financial stewardship as we pursue our purpose. It becomes even more critical when we consider our specific stakeholder deliverables – the essential environmental and social benefits we are obligated to create for the natural world and its inhabitants, and which can only be fully achieved through industry-wide participation. There’s no denying that almost every sector, including apparel, faces significant headwinds. Some of these are impeding how our economy can be reshaped into one that thrives whilst generating value for a broader group of stakeholders. The term “poly-crises” hardly seems sufficient. The majority of Australians are confronted by a cost-of-living crisis squeezing discretionary spending. As a result, ultra-fast fashion continues to grow relentlessly, gobbling up mainstream fashion market share, as financially constrained consumers trade down. The anti-ESG agenda of the new US administration has been embraced by some corners of the Australian business community. Growing geopolitical unrest and the economic threat posed by trade wars loom large. And the politicisation of critical social and environmental issues by select segments of the media diminishes the importance and respect these matters urgently deserve. Yet, amidst this, positive disruptors are emerging. The growth of the clothing resale, rental, and repair markets is rapidly accelerating, with the global resale market growing at double the rate of new fashion sales, according to ThredUp. Global regulatory shifts, including the EU Green Deal and its many directives, are accelerating the adoption of circularity, transparency and consumer empowerment. China’s emergence as a clean energy superpower is setting the pace for other global economies. Australia’s mandatory climate reporting signals a growing national commitment to embedding environmental accountability within our economy, incentivising sustainable practices across all sectors, including clothing. These forces, both negative and positive, require a strong and steady strategic response. We must double down on our commitment to build better systems that prioritise human and environmental wellbeing without compromising financial rigour. Now more than ever, it is imperative to reframe ESG not as a short-term expense but as a long-term investment. To do this, directors need to be confident that operational teams can demonstrate to stakeholders and shareholders that sustainable transformation drives immediate returns and long-term resilience. It has been my observation that truly competitive businesses build resilience to these risks and leverage material issues like sustainability as a core driver of motivation, innovation and growth – “good” can, and must, be good for business. The responsible organisations that have joined Seamless recognise that the benefits of best-in-class sustainability practice are leading to stronger employee engagement, greater industry collaboration, commercially sustainable innovation, improved access to capital, and deeper customer loyalty. These outcomes are measurable and essential. I shared these sentiments in the first episode of the Seamless Leadership podcast, and many executive leaders who also featured in the podcast series shared similar workplace realities. I believe that governance is not just a framework; it is the foundation of vision, resilience, and legacy. So, my counsel on strategic action for directors and decision-makers undertaking purposeful transformation is to: Maintain fortitude for the moral obligation: We must articulate the business case behind every initiative, whether driven by risk or opportunity, and demonstrate the economic value creation in sustainable transformation – yet we must also acknowledge the profound moral obligations inherent in these issues and summon the courage to champion them. Elevate governance: The “g” in ESG is more critical than ever. Strong governance frameworks embed sustainability into strategy, protect against short-termism, and uphold trust with your most critical stakeholders, starting with employees and extending to customers. Backtracking on commitments risks eroding stakeholder trust and causing lasting reputational damage, outweighing any fleeting gains. Harness stakeholder purpose: In directorship, actively seek to contribute to a larger, lasting purpose. Embrace connection and collaboration with other purpose-driven leaders and critical stakeholders to fuel your optimism and drive the action needed to tackle the complex and interconnected systemic challenges facing our organisations and our industry.
Modern Slavery Risks and Compliance: What Boards and Executives Need to Know
Modern Slavery is the umbrella term spanning illegal acts that remove people’s freedom. The United Nations defines modern slavery as “an umbrella term covering practices such as forced labour, debt bondage, forced marriage, and human trafficking. Essentially, it refers to situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, deception, and/or abuse of power.” Despite being illegal globally, modern slavery persists in all regions of the world, including Australia. Globally, Modern Slavery is Increasing not Decreasing Modern slavery is a gross violation of human rights. Global authority, Walk Free Foundation based in Australia, calculates that 50 million people worldwide are trapped in modern slavery, with an estimated 41,000 of them in Australia. This is a 10 million increase on the numbers estimated in 2016. Forced Labour is the Most Prevalent Problem which Makes it a Business Issue 28 million – nearly two-thirds of all cases are forced labour cases, linked to global supply chains, impacting workers across a diverse range of sectors and at every stage of production. Past reports from Walk Free revealed that a horrifying 12% of those in forced labour are children. Walk Free Global Slavery Index 20231 identifies the top five high risk sectors are electronics, garments, palm oil, solar panels and textiles. With such high % related to labour practices there is a significant responsibility on businesses to identify and fight it. This involves actively identifying, preventing, and mitigating slavery risks within operations and supply networks. By thoroughly investigating and addressing issues, businesses not only protect vulnerable populations but also set a positive example for their stakeholders, contributing to wider societal efforts against modern slavery. Modern Slavery Legislation and Reporting The Commonwealth Modern Slavery Act 2018 came into effect on 1 January 2019. The legislation introduced an annual Modern Slavery Reporting Requirement for large businesses and entities operating in Australia that generate more than A$100 million in annual consolidated revenue. “The dual aim of the Act is to increase business and government awareness of these modern slavery risks, and support entities to identify, report and address the risks.”2 Attorney General’s Department A Review After Three Years Resulted in 30 Recommended Improvements Similar to the UK Modern Slavery Act process, Australia’s Modern Slavery Act 2018 was reviewed after three years in practice, to identify what works and what needs to be improved. In 2023, Professor John McMillan, AO, led the review with support from the Attorney-General’s Department. The objective was to assess the effectiveness of the Act in its first three years of operation.IFRS S1: Sets out overall disclosure requirements for sustainability-related financial information. Hundreds of Submissions Received The Review invited submissions, receiving 136 written submissions from domestic and international stakeholders, 30 responses to the online questionnaire and 496 responses to the online survey for reporting entities. This delivered extensive feedback provided valuable insights into the Act’s strengths, weaknesses, and areas for improvement. Review Recommendations The review made 30 recommendations to the Australian Government. An Australian Anti-Slavery Commissioner will be Appointed The appointment of the Australian Anti-Slavery Commissioner is the first direct implementation of a key recommendation from the 2023 Modern Slavery Act review. The Government is currently in the process of selecting the inaugural Commissioner. Responsibilities of the Commissioner: A Blend of Compliance, Education and Advocacy The Commissioner’s role will be to ensure compliance with the Act’s requirements by businesses and government agencies, raise awareness by educating the public, businesses, and government about modern slavery and its impacts, and advocacy by representing the interests of victims of modern slavery and advocating for their rights and support. The government will provide updates on its progress in implementing some of the remaining recommendations in the coming months and years. This could include legislative changes, policy updates, and additional resources allocated to combating modern slavery. Other Recommendations: Expand Scope of Legislation, Due Diligence and Reporting Quality Lower the Revenue Threshold from $100 million to $50 Million to Include More Organisations The review proposed reducing the reporting threshold from $100 million to $50 million significantly expanding the number of companies required to report. The proposed reduced reporting threshold would include specific guidance for small and medium-sized enterprises to meet their reporting requirements. Tighten Due Diligence The most substantial recommendation is to impose a mandatory due diligence obligation on reporting entities. This would require companies to assess and address modern slavery risks within their supply chains. Introduce Guidance to High Risk Sectors and Penalties for Inadequate Reporting A further recommendation is to introduce penalties for non-compliance or inaccurate reporting to strengthen enforcement. And providing tailored guidance for industries or sectors with a higher risk of modern slavery, such as agriculture and garment manufacturing, was also recommended. What Does this Mean for Boards and Executives? Recognise that Good Practice Enhances Business Value Many businesses view compliance with the Modern Slavery Act as an additional expense or a burden. However, reframing compliance with the regulations as a strategic, business practice improvement and value creating investment can deliver qualitative and quantitative benefits. Adopt an Impact, Risk and Opportunities Mindset Purposeful Boards and executives can approach Modern Slavery reporting obligations through the lenses of impact, risks and opportunities, in the same way that they approach environmental and other social responsibilities. Success Comes from a Two-part Response: Systems and Culture Walk Free estimates that $468 billion of goods imported by G20 countries are at risk of modern slavery. Systems This means modern slavery can exist in any business or supply chain, regardless of industry or location. By assuming that risks exist, you can adopt a thorough and vigilant approach to combating modern slavery. This means diligently examining every aspect of your supply chain, including direct suppliers (Tier 1) and their suppliers (from Tiers 2 to Tiers 5-6 including importers, exporters and trading companies). Culture Integrating anti-slavery measures with your company’s core values and ESG strategies underscores the importance of the issue. This alignment ensures that the fight against modern slavery
Maximising Impact: How External Consultants Drive Sustainability Initiatives Forward
In today’s business landscape, sustainability has become a critical component of corporate strategy. Increasing pressure from stakeholders – including investors, consumers, and regulatory bodies – is driving companies to integrate Environmental, Social, and Governance (ESG) principles into their operations. However, navigating the complex terrain of sustainability requires expertise and resources that are often not readily available within an organisation. This is where external consultants are pivotal. They support Sustainability Managers in developing and executing effective ESG strategies and sustainability communications. Understanding the Need for External Expertise Sustainability is a multifaceted domain that encompasses environmental conservation, social responsibility, and corporate governance. Sustainability initiatives also often require cross-disciplinary collaboration that spans supply chain management, stakeholder engagement, and regulatory compliance. Crafting a robust ESG strategy demands a deep understanding of these intricacies and the ability to align sustainability goals with broader business objectives. External consultants bring specialised knowledge and experience to the table. They offer fresh perspectives and innovative solutions that internal teams may overlook, and contribute diverse skill sets and cross-industry insights. This enables Sustainability Managers to leverage a broader range of expertise in addressing complex challenges. A seasoned consultant’s breadth of client experience enables them to customise effective solutions, drawing from a toolbox of proven and adaptable strategies, thus reducing risk and optimising results for the organisation. Driving Strategic Alignment Sustainability Managers must ensure sustainability efforts are closely aligned with their organisation’s corporate strategy. That means ESG goals must be integrated seamlessly into business operations to maximise impact and drive long-term value creation. External consultants excel in helping organisations identify strategic priorities, assess risks and opportunities, and develop actionable plans to embed sustainability across all levels of the organisation. They conduct comprehensive audits and gap analyses to identify areas for improvement and recommend objective and data-informed strategies to address them. Whether implementing renewable energy solutions, enhancing diversity and inclusion practices, or optimising waste management processes, external consultants can accelerate progress towards sustainability targets while improving overall business performance. Navigating the Regulatory Landscape The regulatory landscape surrounding sustainability is constantly evolving. New laws and reporting requirements are emerging at national and international levels. Keeping abreast of these changes and ensuring compliance can be daunting for Sustainability Managers, especially in industries subject to stringent environmental and social regulations. External consultants specialising in sustainability regulations can provide invaluable support in interpreting complex legislation, navigating reporting frameworks such as GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board), and implementing robust governance structures to mitigate compliance risks. They help organisations proactively adapt their ESG strategies to meet evolving standards and stay ahead of regulatory developments. Addressing Resource Constraints and Accelerating Progress Sustainability Managers must commonly deal with resource constraints when tasked with driving ESG initiatives. Limited budgets, competing priorities, and staffing shortages can hinder the effective implementation of sustainability strategies. This may leave managers overwhelmed and unable to achieve desired outcomes. In these cases, external consultants offer a cost-effective solution. Many provide on-demand access to their specialised skills and resources without the overhead costs of hiring additional full-time staff. External consultants can act as an extension of the internal sustainability team, filling gaps in expertise and capacity as needed. Whether conducting in-depth research, analysing data, or managing stakeholder engagements, consultants can alleviate the burden on internal resources. This allows Sustainability Managers to focus on strategic decision-making and priority relationships and initiatives. Consultants experienced in working with diverse clients across industries can quickly adapt to each organisation’s unique needs and challenges. They can provide flexibility for Sustainability Managers operating in dynamic environments where agile responses and innovative solutions are needed to meet rapidly shifting priorities. Moreover, external consultants bring a crucial element of acceleration to the table. With their specialised expertise and focus, consultants can expedite the pace of ESG progress within businesses facing resource constraints. By leveraging their deep understanding of sustainability frameworks, regulations, and best practices, consultants can swiftly identify critical areas for improvement and implement targeted strategies to drive measurable impact. Enhancing Stakeholder Engagement Effective communication is essential for building trust, credibility and ownership around sustainability initiatives. External consultants can play a vital role in helping organisations craft compelling narratives, engage stakeholders, and communicate progress transparently. From developing sustainability reports and ESG disclosures, to designing stakeholder engagement programs and conducting materiality assessments, consultants can help Sustainability Managers articulate their sustainability story in a way that resonates with diverse audiences. Consultants are also often connected to valuable networks within the sustainability ecosystem, and can facilitate partnerships with NGOs, industry associations, and peer organisations. Companies can leverage these networks to amplify their impact, promote best practices, and drive collective action towards shared sustainability goals. Providing a Supportive Network for Sustainability Managers Navigating the complexities of sustainability initiatives within organisations can be a daunting task, particularly for Sustainability Managers who may feel isolated in their efforts. The role often entails balancing competing priorities, managing stakeholder expectations, and driving change across diverse functional areas, all while facing resistance from internal stakeholders already feeling stretched. External consultants serve as more than just advisors; they provide a valuable support network and forum for Sustainability Managers to seek advice, share experiences, and gain perspective from peers facing similar challenges. Peer Learning and Knowledge Sharing: External consultants can connect Sustainability Managers with other professionals in the field to facilitate peer-to-peer learning. Through workshops, roundtable discussions, and networking events, consultants can create a forum for sharing best practices, lessons learned, and innovative solutions to common sustainability challenges. This collaborative environment fosters a sense of camaraderie and solidarity among Sustainability Managers, and empowers them to learn from each other’s experiences and collectively drive progress towards shared sustainability goals. Access to Industry Insights and Trends: Keeping abreast of emerging sustainability trends, regulatory developments, and industry best practices is essential for effective decision-making and strategy development. External consultants offer access to a wealth of industry insights and market intelligence to provide Sustainability Managers with timely information and analysis to inform their initiatives. Staying informed about the latest trends and benchmarks helps Sustainability Managers