In line with the global imperative for decarbonisation, Environmental, Social and Governance (ESG) reporting legislation is ramping up around the world. In the last year ESG reporting changes have been written into EU regulations and will be written into UK regulations over the next three years, impacting a range of businesses from larger companies through to SMEs.

In a bid to support businesses of all sizes to integrate sustainability principles into their operations and so comply with these legal requirements, AAB Group has announced the launch of their (ESG) division.

An increasing number of businesses will have to report and be audited on their carbon footprint as part of the Streamlined Energy and Carbon Reporting regulation (SECR) in the UK and Corporate Sustainability Reporting Directive (CSRD) in the EU, with a risk of fines for non-compliance.

However, in addition to compliance, businesses stand to gain a number of competitive advantages by taking action to establish this framework for measuring and reporting on ESG topics, potentially including: greater attraction and retention of talent, access to finance, cost savings, increased profitability and retention of contracts, as well as acquiring new business.

Alasdair Green, ESG Partner at AAB Group explained the rationale underpinning the establishment of the new division, “In today’s rapidly changing business landscape, ESG factors are becoming increasingly important considerations for investors, regulators, and consumers. It has been consistently highlighted that companies performing strongly across all three factors of ESG have been shown to be more profitable, with one study finding up to 6 times more. These businesses not only mitigate risk, but also stand to gain a competitive edge by fostering long-term resilience and value creation.

“At AAB Group, we recognise the critical role that businesses play in addressing pressing global challenges, such as climate change and social inequality. Our ESG proposition is designed to support businesses in embracing sustainability as a core component of their operations, driving positive outcomes for both society and the bottom line.

“We are extremely proud to offer this proposition, which not only complements our existing portfolio of business and professional services, but also adds significant value to our clients, both established and new. ESG is considered a key growth area within AAB Group, with plans including further recruitment, team development and training.”

Based across the UK and Island of Ireland, AAB Group’s ESG team have extensive expertise in this increasingly important field, and hold credentials from Cambridge University, Chartered Accountants Ireland and the Institute of Accountants in England and Wales. With a trained B Leader on the team, AAB can also support companies pursuing B Corp certification.

Aveen McShane, ESG Director at AAB Group added: “Our clients realise that by commencing their sustainability journey, they will not only drive profits, but they will become more resilient, adaptable and avoid the real risk of being left behind. We are here to support forward-thinking businesses with our five-stage pathway.  Our goal is to build resilient and future-proof organisations that can meet today’s needs, without endangering those of future generations.”

AAB Group’s ESG service offering is designed to assist businesses in navigating the complexities of sustainable business practices by offering:

• Stakeholder Engagement: To provide businesses with comprehensive assessments of their ESG risks and opportunities, AAB can conduct materiality assessments which identify positive and negative social and environmental impacts.
• Strategic guidance: With a team of experienced ESG specialists, AAB offers tailored guidance and strategic recommendations to help businesses align their ESG policies with their broader business objectives. The AAB experts provide practical insights to foster meaningful change.
• Transparent reporting: AAB’s reporting tools, including carbon footprint software, enable businesses to track and communicate progress towards sustainability goals effectively. By setting transparent and standardised metrics, businesses can enhance accountability and build trust with stakeholders.

For more information about AAB Group’s ESG service offering and its benefits for businesses, visit www.aab.uk/business/ESG