Australian accounting firms face a profound shift as mandatory climate-related disclosures under AASB S2 take effect, with phased implementation now well underway in 2026. What began as a compliance obligation for large entities is evolving into a broader opportunity for accountants to move beyond traditional financial reporting and into strategic advisory roles focused on sustainability risks, opportunities, and stakeholder expectations.
This transition reflects growing recognition that accountants, with their expertise in data integrity, risk assessment, governance, and assurance, are ideally positioned to guide businesses through the complexities of sustainability integration. As regulations expand and stakeholders demand greater transparency, firms that embrace this change can strengthen client relationships and contribute to long-term value creation.
The Drivers Behind the Evolving Role
The introduction of mandatory climate disclosures has accelerated the need for accountants to expand their scope. Professional bodies have responded by embedding sustainability into professional development and education frameworks. For instance, Chartered Accountants Australia and New Zealand (CA ANZ) has emphasised that accountants play a central part in reporting, assurance, strategy, and governance related to sustainability, noting that it is now integrated into core competencies alongside taxation and assurance.
Similarly, CPA Australia offers a range of ESG-focused courses and micro-credentials to help members upskill in areas such as ESG fundamentals, IFRS-aligned sustainability standards, greenhouse gas accounting, and leadership in sustainability strategy. These initiatives highlight how the profession is adapting to ensure accountants can address emerging demands effectively.
Industry trends indicate that many firms are seeing increased requests from clients for assistance with identifying climate-related risks, preparing transition plans, and aligning financial strategies with sustainability goals. This shift moves accountants from reactive compliance support to proactive advisory, where they help clients navigate material sustainability issues that could impact cash flows, access to finance, or overall resilience.
Key Areas Where Accountants Add Strategic Value
In practice, this expanded role involves several interconnected areas that build on core accounting skills. Accountants are increasingly involved in assessing how climate-related risks and opportunities affect business models and value chains, often drawing on scenario analysis to evaluate resilience under different warming pathways. This requires integrating non-financial data with financial metrics to provide a more holistic view of performance and prospects.
Another focus is on governance and risk management processes. Accountants help establish frameworks to identify, prioritise, and monitor sustainability matters, ensuring these align with overall enterprise risk management. For example, they might advise on embedding climate considerations into board oversight, internal controls, or remuneration policies to reflect long-term sustainability performance.
Metrics and targets represent a particularly practical area for advisory input. Accountants assist with measuring and disclosing greenhouse gas emissions across scopes, setting science-based targets, and tracking progress. This often involves improving data quality and systems to support credible reporting, which in turn builds stakeholder trust and supports informed decision-making.
Furthermore, as assurance requirements phase in, accountants contribute to building robust processes that ensure disclosures are reliable and verifiable, reducing risks such as greenwashing and enhancing credibility with investors and regulators.
Practical Steps to Build ESG Advisory Capabilities
Firm owners and partners can take deliberate steps to position their practices for this evolution. Start by assessing current client needs through targeted discussions about sustainability pressures, such as supply chain expectations or financing requirements tied to ESG performance. This helps identify where advisory services could add the most value.
Invest in targeted professional development. Engage with resources from CA ANZ and CPA Australia, including playbooks, micro-courses, and community initiatives focused on sustainability reporting. These provide practical guidance on integrating ESG considerations into everyday practice.
Build internal expertise gradually. Consider designating team members to lead on sustainability topics, encouraging them to participate in relevant webinars, communities of practice, or elective modules in professional programs. This creates a knowledge base that can be shared across the firm.
Explore tools and processes to streamline data collection and analysis. Many firms find that enhancing workflows for non-financial metrics complements existing financial systems, making it easier to deliver integrated insights to clients.
Finally, view this as an opportunity to differentiate services. By offering guidance on how sustainability links to financial outcomes, accountants become indispensable partners in helping clients achieve resilient, forward-looking strategies.
Some firms address capacity constraints by exploring offshore support to handle routine compliance tasks, freeing onshore professionals to focus on higher-value advisory work such as sustainability strategy and risk assessment. For more details on preparing for such arrangements, see our guide on how to prepare for accounting outsourcing or the BOSS Outsourced Accounting FAQ.
Sources
CA ANZ Sustainability Playbook (2025).
CPA Australia ESG and sustainability CPD courses and resources (2025–2026).
CA ANZ Sustainability at CA ANZ strategy and community initiatives (2025–2030).
AASB S2 Climate-related Disclosures standard (2024).
Industry trends from Accountants Daily and related publications (2025–2026).
Frequently Asked Questions
Why are accountants well-suited to lead on ESG advisory?
Accountants already handle data integrity, risk evaluation, governance, and assurance, skills that directly apply to assessing and reporting sustainability risks and opportunities, positioning them to provide integrated strategic guidance.
What professional development options exist for upskilling in sustainability?
CA ANZ and CPA Australia offer playbooks, micro-credentials, courses on ESG fundamentals, greenhouse gas accounting, and dedicated electives, along with communities of practice to build practical expertise.
How does the role differ from traditional compliance work?
Traditional compliance focuses on meeting reporting obligations, while advisory extends to strategic analysis of sustainability impacts on business models, financial resilience, and decision-making for long-term value.
Is ESG advisory only relevant for large firms or clients?
No, as mandatory requirements phase in and stakeholder expectations grow, mid-sized and smaller practices increasingly support clients with supply chain or financing needs tied to sustainability performance.
What first steps can a firm take to expand into this area?
Begin with client conversations on sustainability pressures, pursue targeted CPD from professional bodies, build team knowledge, and integrate relevant tools to support data-driven advisory services.
