In this podcast episode, find out how the ESG Centre of Excellence can help BC businesses integrate ESG and attract investment with guidance, resources, and tailored support. Part of our Coffee Chats with CPABC podcast series.
With ESG no longer a ‘nice to have’ given reporting requirements and data requests from investors, customers, and financial institutions, CPAs are in a unique position to report on key data, as well as connect clients to resources that will help them navigate the changing ESG environment. One such resource is the ESG Centre of Excellence, which was established as a support and resource hub to help attract ESG-conscious investment to BC while also assisting businesses to develop and export ESG-aligned goods and services.
I recently had the chance to chat with the Centre’s executive director Kevin Butterworth, who outlines how the organization helps BC businesses integrate ESG and attract investment with guidance, resources, and tailored support.
Lori: Could you tell us a bit about why the Centre was launched and the work it’s focused on?
Kevin: Recognizing that investors and consumers, both abroad and at home, are becoming increasingly ESG conscious, the provincial government saw the need to support businesses to grow and adapt in this new economic environment. We see numerous reports of companies with strong ESG practices and reporting enjoying better financial performance, enhanced reputation, and greater resiliency to risk. For example, BC-based TELUS has strong ESG commitments and is ranked second-most sustainable Canadian company by Time Magazine.
We’ve also seen that the commercial finance sector is increasingly equating climate risk directly with fiscal risk. At the same time, BC’s small-and-medium-sized enterprises, which make up 98% of BC companies, are not keeping up with evolving ESG demands. We worry that they risk losing their place in the supply chain and their competitive edge for investment.
Lori: For businesses that have yet to begin integrating ESG into their operations, could you give us an overview of what this journey can look like?
Kevin: Embedding ESG practices in a company’s operations can look different for each business depending on their size, sector, and where they’re starting from. But generally, we break it down into three key stages. The first stage is understanding ESG, which means learning what ESG is all about and why it matters – whether it’s to attract more customers, meet stakeholder expectations, or ensure your place in the supply chain.
Second is implementing ESG. This is where companies begin to put their knowledge into action. They might already be doing some ESG-related activities without even realizing it—things like recycling, using energy-efficient machinery, or having diversity and inclusion policies in place. But at this stage, businesses are building more structured and intentional strategies around those activities. This could involve formalizing their sustainability practices, improving governance structures, or developing stronger community engagement initiatives.
The final stage is reporting on ESG. This is where transparency and accountability come into play. Once businesses have set their ESG strategy and begun implementing it, they need to measure their progress and report it consistently. This involves defining clear metrics, setting benchmarks, collecting reliable data, and communicating ESG performance to stakeholders. For many businesses, this stage requires setting up new systems or adopting third-party standards to ensure that the data is credible and comparable. The Centre provides tools and resources for businesses at each stage of their journey to offer the support they need to move forward.
Lori: What support can the Centre provide to help business owners strengthen their operation through ESG practices?
Kevin: We offer, free of charge, a range of support to help businesses integrate ESG practices effectively, starting with personalized guidance from an ESG advisor. One-on-one consultations are available for BC businesses to speak directly with someone who can help them navigate the ESG landscape.
A lot of business owners may feel overwhelmed by the term “ESG,” but the good news is—many are already undertaking ESG-related or adjacent activities, even if they don’t realize it. For example, a small retailer might already have a recycling program in place, follow net-zero policies, or prioritize diversity and equity in hiring practices. We can help businesses identify what to focus on and which ESG factors are most relevant for their specific situation. We know it’s impossible for small and medium-sized businesses to tackle every ESG issue, so we’ll help them prioritize the ones that will make the biggest impact on their business and stakeholders.
To guide them, the Centre offers tools like the Material Topic Identification Guide—which helps businesses determine which ESG topics matter most to them, based on their industry and goals. Of course, implementing ESG practices is just one part of the puzzle. Having a clear strategy or plan to guide those efforts is just as important. That’s why we offer an ESG Strategy Development Workbook, which covers key areas like materiality, visioning, gap analysis, and goal setting, which gives businesses a roadmap to integrate ESG practices meaningfully into their operations.
Lori: Can the Centre offer support in preparing for reporting requirements?
Kevin: Most definitely. It’s easy to feel overwhelmed by the sheer number of global standards and frameworks. The good news is that there’s a growing trend toward harmonizing these international sustainability standards. More and more countries, including Canada, are moving toward the development of climate and sustainability disclosures.
As a result, this shift is affecting businesses across our country—not just those that may be required to report due to operations in disclosure-mandatory locations, but also those in the supply chains for larger corporations. That said, change will take time. Many ESG standards are still voluntary, and there are some industry-specific or legally mandated reporting requirements in place, especially for smaller businesses. For some companies, ESG reporting might even be driven by procurement needs or buyer demands within supply chains. We can guide businesses on the specific reporting requirements they need to focus on and help them prepare for future mandates as they arise. We also offer an ESG Reporting Playbook which walks businesses through the ‘why’ and ‘how’ of ESG reporting.
Lori: We all know that businesses will need data to report on ESG as well as meet stakeholder requests, so can the Centre help businesses meet ESG data requests?
Kevin: After a business identifies what metrics are important to them, the Centre can offer guidance on where to find this data. For some metrics, such as energy usage, waste, and wastewater, you can find data through utility bills and internal reports. HR and payroll can provide data on hiring practices and pay equity. The Centre has developed an ESG Data Gap Analysis Tool to determine gaps in data. Businesses often face difficulties when trying to benchmark against industry peers or other industries. Our suggestion is for businesses to do the best they can with the information they currently have and build on that over the longer-term.
Lori: What other key points would you highlight for CPAs and their clients?
Kevin: As climate risks and sustainability challenges become increasingly linked to financial risks, we’re seeing a growing convergence between the two. We’re increasingly seeing ESG or sustainability data being incorporated directly into annual reports alongside financial information, rather than being presented as separate standalone reports. Finance teams, including accountants, are no longer reporting solely on the financials—they are also responsible for understanding and reporting on ESG factors that could have a direct or indirect impact on the business’s financial performance.
For CPAs, this is a shift and it’s also an opportunity. Traditionally, financial reporting has been the core focus, but now there's rising pressure to capture, measure, and report on ESG-related data, such as a company’s energy efficiency, supply chain sustainability, and diversity and inclusion metrics—each of which can affect financial outcomes like costs, reputational risks, or long-term value. For CPAs, ESG reporting often requires data from various parts of the organization, not just finance. CPAs who are active in this space will need to take a more holistic, cross-functional approach to gather and analyze the data.
Finance departments are also increasingly being asked to quantify the financial impacts of ESG initiatives. For instance, how do sustainability efforts like energy savings or waste reduction directly impact the bottom line? Or how do climate-related risks—like potential regulatory changes or shifts in consumer behavior—affect the company’s financial future? These are questions that finance professionals, including CPAs, will need to be able to answer.
Lori: If listeners would like to connect with the Centre, what’s the first step they should take?
Kevin: Just reach out! Visit our website and fill out the “contact us” form or drop us an email. Once you get in touch, we’ll answer any questions you have and help you get started with an ESG self-assessment. This tool helps you evaluate where your business stands in terms of ESG practices and maturity, so you know exactly where to focus next. Whether you’re just starting out or looking to refine your existing efforts, we’re here to support companies every step of the way.
For more insight, check out CPABC’s collection of ESG articles and podcasts.
Lori Mathison, FCPA, FCGA, LLB, is the president & CEO of CPABC.
