Australian accounting firms are witnessing a clear shift as mandatory climate-related disclosures under AASB S2 create sustained demand for sustainability advice. Clients across Group 1, 2 and 3 entities now seek guidance not only on compliance but on how to integrate ESG considerations into strategy, risk management and long-term value creation. Firms that proactively build sustainable advisory capabilities can develop new revenue streams while strengthening client relationships in an evolving regulatory environment.
This transition from traditional compliance to strategic ESG advisory requires deliberate business development. By refining client conversations, designing targeted service packages and clearly differentiating their offerings, practices can capitalise on the opportunity while delivering genuine value to clients navigating the new mandates.
The Growing Opportunity for ESG Advisory Services
With phased reporting requirements now extending to mid-sized businesses from 2026 and 2027, client demand for advisory support continues to rise. CA ANZ’s 2025 Climate & Nature Survey shows that 58% of members view climate risks as material to their roles, and professional bodies report increasing requests for help with scenario analysis, transition planning and integrated reporting. CPA Australia similarly highlights sustainability as a key growth area, with many accountants upskilling through targeted micro-credentials to meet client expectations.
Firms that position themselves as trusted ESG advisors move beyond routine compliance work into higher-value strategic conversations. This evolution supports practice growth, improves retention of talented professionals seeking meaningful work, and aligns with broader industry trends toward advisory-led models.
Many practices are observing that clients who initially engaged for disclosure preparation often expand the relationship to include ongoing sustainability strategy and performance improvement.
Effective Client Conversations to Identify ESG Advisory Needs
Successful firms begin with structured, value-focused discussions rather than compliance checklists. Common approaches include asking targeted questions about current sustainability maturity, material climate risks, stakeholder expectations and long-term business goals. These conversations often reveal opportunities in areas such as supply-chain resilience, energy efficiency or sustainable finance readiness.
Accountants are increasingly framing discussions around the client’s strategic objectives — for example, how robust ESG practices might improve access to capital, strengthen supplier relationships or enhance brand reputation. By linking ESG to financial outcomes and competitive positioning, firms demonstrate clear advisory value from the outset.
Regular touchpoints, such as annual strategy reviews or post-reporting debriefs, help maintain momentum and uncover evolving needs as regulations and client expectations develop further.
Designing Practical ESG Advisory Service Packages
Leading practices are developing tiered service offerings that match different client maturity levels and budgets. Typical packages include foundational support such as materiality assessments and governance framework development, mid-tier services covering scenario analysis and transition planning, and advanced offerings focused on integrated reporting, assurance readiness and ongoing performance tracking.
Many firms bundle these with existing services — for instance, combining ESG risk reviews with annual financial planning or linking sustainability metrics to management reporting dashboards. This integrated approach reduces duplication for clients and creates natural upsell pathways as needs grow.
Flexible delivery models, including project-based engagements or retained advisory retainers, allow practices to scale support according to client size and complexity while maintaining predictable revenue.
Differentiation Strategies in a Competitive Market
In an increasingly crowded advisory space, successful firms differentiate through deep technical capability combined with practical business insight. Many invest in targeted professional development via the CA ANZ Sustainability Playbook and CPA Australia ESG programs, ensuring their teams can translate complex standards into actionable client strategies.
Clear differentiation also comes from sector specialisation, such as focusing on agriculture, manufacturing or professional services, where material ESG issues vary significantly. Transparent methodologies, documented case outcomes (without breaching confidentiality) and a collaborative approach with clients’ other advisors further strengthen positioning.
Firms that demonstrate measurable client outcomes — such as improved risk ratings, cost savings or enhanced stakeholder confidence — build stronger reputations and referral networks over time.
Embedding ESG Advisory into Long-Term Practice Growth
Building a sustainable advisory practice involves more than new service lines. It requires updating internal processes, training teams and aligning marketing messages to highlight strategic ESG expertise. Practices that integrate sustainability considerations into their own operations often find it easier to advise clients authentically.
Over time, this focus supports diversified revenue, attracts talent interested in purpose-driven work and positions the firm as a forward-thinking leader. As mandatory disclosures and stakeholder expectations continue to evolve, firms with established ESG advisory capabilities will be best placed to support clients and sustain profitable growth.
Sources
CA ANZ 2025 Climate & Nature Survey.
CA ANZ Sustainability Playbook (November 2025).
CPA Australia Sustainability (ESG) professional development resources and skills outlook (2025).
AASB S2 and phased mandatory climate disclosure requirements (2025–2027).
Frequently Asked Questions
How can accounting firms start offering ESG advisory services?
Firms typically begin by upskilling through resources such as the CA ANZ Sustainability Playbook and CPA Australia micro-credentials, then develop tiered service packages focused on materiality assessments, governance and scenario analysis to support clients under AASB S2.
What client conversations are most effective for identifying ESG advisory opportunities?
Structured discussions that link sustainability to the client’s strategic goals, financial performance and stakeholder expectations often uncover needs in risk management, transition planning and integrated reporting.
How should firms structure ESG advisory service packages?
Many practices offer foundational, mid-tier and advanced packages that can be bundled with existing compliance or advisory work, using flexible project or retainer models to match client size and maturity.
What differentiates successful ESG advisory practices?
Deep technical knowledge combined with sector-specific insight, clear methodologies, demonstrated client outcomes and authentic integration of sustainability into the firm’s own operations help practices stand out.
Does building ESG advisory capability support overall practice growth?
Yes. It creates diversified revenue streams, attracts purpose-driven talent, strengthens client relationships and positions the firm to support evolving regulatory and stakeholder expectations over the long term.
