Alasdair Green

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.

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.

AAB’s new division will support businesses of all sizes to integrate sustainability principles into their operations and so comply with these legal requirements.

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.

Explaining the rationale underpinning the establishment of the new division, Aberdeen-based Alasdair Green, ESG partner at AAB Group, said: “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 six times more.

“These businesses not only mitigate risk, but also stand to gain a competitive edge by fostering long-term resilience and value creation.”

He continued: “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 hold credentials from Cambridge University, Chartered Accountants Ireland and the Institute of Chartered Accountants in England and Wales (ICAEW). 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.”