[On-Demand] Inside the Role of the ESG Controller

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Webinar Q&A

Career Path and Qualifications for ESG Controllers

What is the ideal professional background for an ESG Controller?
- The ideal background typically includes experience in financial reporting or auditing, as ESG controllers often rely on skills like process documentation, internal controls, and governance structures. Many ESG controllers, like Trevor Dunaway and Tashan Goble, started as financial controllers or auditors and transitioned into the ESG space, building upon their foundational knowledge of regulatory compliance and controls.
Can someone without experience in Finance or Accounting transition into the ESG Controller role?
- Yes, but it might be more challenging. Sustainability professionals could transition into ESG controller roles if they gain the necessary skills in governance, regulatory reporting, and internal controls. According to Amy Beers, sustainability professionals may not have extensive experience with accounting and reporting standards, which are crucial in the ESG controller role. Finance professionals, with their experience implementing new standards and working in regulatory environments, are naturally better positioned for this role. That said, we have witnessed scenarios of ESG and sustainability experts transitioning into the accounting/controller roles. One does not need to be a CPA.
Are there specific certifications or qualifications required to become an ESG Controller?
- Key qualifications include:
  - Experience in regulatory reporting and assurance.
  - Knowledge of governance structures and the ability to set and implement policies.
  - Analytical and technical skills to navigate ESG standards, such as the Greenhouse Gas Protocol and emerging regulations like the ESRS or California climate laws.
  - Strong communication and cross-functional collaboration skills to engage stakeholders like HR, legal, IT, and sustainability teams.
Are there resources or training programs can help ESG experts transition to ESG Controller roles?
- Practical Resources: The Greenhouse Gas Protocol and interpretive guides like KPMG's ESRS Handbook were frequently cited as indispensable resources.
- Training Programs: AICPA’s sustainability-focused programs, including their partnership with Persefoni, offer climate workshops and guidance on sustainability assurance standards.
- Networking: Engaging with peers, auditors, and regulators is invaluable for exchanging insights and solutions in this evolving space.

What advice would you give to someone looking to pivot into an ESG Controller role?
- 1. Talk with current ESG Controllers, auditors, regulators, or folks in a similar role to learn more about their work and perspectives.
- 2. Law firms, Big 4 firms, and others have excellent summaries for necessary learning.
- 3. Actually sit down to read the regulations! While there are not a lot of courses out there, reading the GHG Protocol, the ESRSs, and other regulations is an invaluable learning experience."

Organizational Structure and Reporting Lines

At what level in an organization does the ESG Controller sit (Manager, Director, VP)?
- The level at which an ESG Controller sits within an organization—whether as a Manager, Director, or VP—varies based on the company’s size, organizational structure, and ESG maturity.
Who does the ESG Controller typically report to—Finance, Accounting, or Sustainability?
- Since ESG data is increasingly being treated like financial data, we are seeing ESG Controllers sitting within the Finance team and working closely with the accounting, Risk, and Sustainability teams.
How does the ESG Controller interact with other teams in the organization?
- ESG Controllers collaborate with a wide range of teams, including:
  - ESG/Sustainability Teams: ESG Controllers help translate sustainability goals into measurable targets and ensure that these align with regulatory reporting requirements.
  - EHS: ESG Controllers collaborate to ensure EHS metrics, such as waste, water, and energy usage, are accurately captured and integrated into ESG reports. They align on regulatory overlaps, such as EPA disclosures or occupational safety metrics that may be material for ESG reporting.
  - Risk Management: ESG Controllers help integrate climate-related and other ESG risks into the broader enterprise risk management framework. They provide data and insights to quantify risks, such as the financial impacts of regulatory non-compliance or supply chain disruptions due to climate change.
  - HR and Benefits: ESG Controllers work with HR to gather and report metrics such as employee demographics, turnover rates, and DEI statistics for ESG disclosures. They also support disclosures related to social metrics, such as pay equity or workforce wellbeing.
  - Legal and Compliance: ESG Controllers collaborate closely with legal teams to interpret and implement regulations like CSRD, SEC climate disclosures, or California climate laws.
  - IT and Data Teams: These teams work together to ensure the integration of data from various sources (e.g., procurement, operations, HR) into a unified ESG reporting framework. IT teams also support the implementation of ESG software tools and address infrastructure challenges related to delays, costs, or scalability.
What is the relationship between ESG Controllers, Chief Sustainability Officers, and Sustainability/ESG directors?
- Trevor and Theshan describe this as a true partnership with CSOs and related roles. With regulatory compliance and accounting demands increasing, ESG Controllers can work with CSOs to manage the collection and reporting of reliable data while the CSOs can, for example, pursue decarbonization or other goals.

Responsibilities and Skills

What governance documentation is needed to pass a limited assurance audit for sustainability data points?
- We recommend an Inventory Management Plan. Here's more information on that: https://www.persefoni.com/blog/inventory-management-plan
Is calculating GHG emissions directly part of an ESG Controller’s responsibilities, or do they rely on other teams?
- ESG Controllers typically oversee the processes, controls, and audit readiness for GHG emissions data but often rely on teams like EHS or Sustainability to help measure and manage the data.
How is utility data reviewed as part of the Controls process?
- ESG Controllers can review utility data by collecting usage records (e.g., electricity, natural gas) from bills or meters and validating them for accuracy and consistency. Then, to get their emissions, they apply appropriate emission factors to convert energy usage into greenhouse gas emissions, and for this they can look to global guidance such as the GHG Protocol. Any anomalies or gaps in data are investigated to maintain reliability.
Should ESG Controllers lead the tracking of evolving regulatory requirements, or does this fall under compliance or legal teams?
- Usually, compliance or legal teams lead regulatory tracking, while ESG Controllers focus on implementing processes and ensuring reporting aligns with those requirements. It's a collaborative effort.
How do ESG Controllers balance technical ESG knowledge (e.g., GHG Protocol, biodiversity footprints) with leveraging internal sustainability or legal experts?
- ESG Controllers develop foundational knowledge of frameworks like the GHG Protocol but often rely on sustainability and legal teams for deeper expertise. They act as connectors to integrate insights and ensure alignment across functions.

Tools and Processes

Do ESG Controllers select the software tools for ESG data collection and reporting?
- ESG Controllers often collaborate with teams like sustainability, legal, IT, and procurement to select appropriate ESG data collection and reporting tools.
What tools are ESG Controllers using today?
- ESG Controllers use data collection and reporting platforms designed for carbon ESG metrics, often integrating with existing enterprise systems for seamless reporting.
How do ESG Controllers handle IT delays, costs, and infrastructure challenges?
- They work closely with IT to align ESG needs with existing systems, prioritize critical data flows, and minimize delays or budget overruns.
Are there programs to help non-CPAs learn controls like ICFR for assurance environments?
- Yes, programs like the COSO Internal Control Certificate or AICPA workshops provide foundational training for non-CPAs.

Practical Advice and Insights

What advice would you give for preparing for assurance and dealing with auditors?
- To prepare for assurance, establish clear processes, robust controls, and thorough documentation for all ESG data. Engage with auditors early to align on expectations and address potential gaps proactively. Focus on high-risk areas like emissions data or compliance metrics and maintain transparency by providing evidence and acknowledging areas needing improvement.
For startups and SMEs, where one person wears many hats, when does building the ESG Controller function make sense?
- Building an ESG Controller function makes sense when external stakeholders start demanding ESG disclosures, the complexity of data increases, or regulatory requirements become significant. Early on, one person can oversee ESG reporting with cross-departmental support, transitioning to a dedicated role as the company grows and ESG priorities expand.
What are the most significant barriers to internal capacity building around ESG, and how can they be addressed?
- Key barriers include a lack of awareness, siloed data, limited expertise in ESG standards, and resource constraints. These can be addressed by educating leadership on ESG benefits, centralizing data systems, investing in training programs, and starting small with the most material metrics before scaling efforts.

Industry Trends and Opportunities

Are ESG Controllers involved in a company’s value chain?
- Yes, ESG Controllers are closely involved with the scope 3 or value chain.

Thank you for your interest!