The numerous ESG-related disclosure regulations that have been introduced around the world have spurred many companies to create a new role of ESG controller. Regulations such as the European Union’s Corporate Sustainability Reporting Directive, the U.S. Securities and Exchange Commission’s climate disclosure rule and California’s corporate accountability act are shifting ESG reporting from voluntary to mandatory, and these mandatory disclosures require third-party assurance, similar to financial disclosures to regulators and investors.
Financial controllers are responsible for producing accurate financial disclosures to comply with disclosure regulations that the company is subject to across jurisdictions. Thus ESG controllers are responsible for producing accurate ESG disclosures that comply with emerging regulatory disclosure requirements.
SOX and third party assurance
Unsurprisingly, companies look for candidates who have experience building and managing processes compliant with the Sarbanes-Oxley Act, or SOX, which requires that publicly traded companies doing business in the United States establish internal controls to meet financial reporting standards so that investors have confidence in the financial disclosures put out by companies.
Many of the new ESG disclosure regulations include a requirement for independent third-party assurance of the processes and methodologies used by the company to collect and report ESG data, also known as limited assurance.
Regulations such as CSRD will require companies to obtain limited assurance of its ESG disclosures from independent third parties for 2025-2027 and, starting in 2028, reasonable assurance — meaning that they will need to be reviewed as a standard similar to that of an audit that determines that they are materially correct. With this in mind, many companies look for candidates with:
- Previous audit experience, preferably with one of the Big 4 (Deloitte, EY, KPMG and PwC) auditing firms
- Experience, or at minimum exposure to, the most commonly used ESG reporting standards and frameworks, such as GRI, TCFD and SASB
- An understanding of ESG regulations
- A certified public accountant (CPA) license
Not just CO2-intensive industries
Companies that hire ESG controllers are not limited to carbon-intensive industries such as energy, because companies across sectors are increasingly subject to ESG disclosure regulations. Technology companies Google and Pure Storage, financial services companies Citi and Mastercard, and industrial players Honeywell and Rockwell Automation have all hired ESG controllers or made internal promotions to establish the position.
Every month, there are new job postings from companies looking for an ESG controller. Check out these current openings:
Read More: What companies are looking for when hiring ESG controllers