At a glance
- ESG is increasingly a key consideration even for the smallest businesses.
- It’s particularly important in terms of finance.
- Accountants can act as advisers on reporting, securing capital, and planning for risk through an ESG lens.
With the World Economic Forum’s Global Risks Report 2024 ranking climate action failure, extreme weather and biodiversity loss among the top five long-term risks, businesses must prioritise environmental, social and governance (ESG).
Many small businesses, however, have not had the bandwidth to pay ESG much attention, believing it to be a nice-to-have rather than a must-have. An ID Crypt Global survey of UK business owners showed that just 19% are aware of what ESG is and only 12% are implementing formal practices.
On Friday 30 May, the IFA will host a webinar with Dr. Rahul Jain, Deputy Program Leader BSc Hons Accounting and Finance at De Montfort University Dubai. He will outline how the integration of ESG principles is reshaping financial decision-making, investment strategies and risk management.
As a sustainability professional in the United Arab Emirates (UAE), Jain has witnessed an evolution in how people view ESG, not just as a moral choice but as a key part of business strategy that affects profits, risk and success.
We spoke with him about how accountants, particularly those advising small to medium-sized enterprises (SMEs), can respond.
ESG is integral to financial performance and risk assessment
Embedding sustainability in financial decision-making can have benefits above simply showing off ESG credentials. It can improve risk management, attract investors and strengthen brand reputation and customer retention.
Global regulations, shifting investor expectations and market forces are driving the transition towards sustainable finance. Jain cites an example of the UAE’s Net Zero 2050 Strategic Initiative, the first such commitment in the Middle East, which positions sustainability at the heart of national economic policy.
Jain says: “The message is clear: ESG is no longer a ‘soft’ discipline. It’s an investment strategy, a governance model, a climate adaptation tool, and a socio-economic enabler. ESG is reshaping how industries operate, how regulators legislate, and how investors allocate capital.
“The result is a maturing ecosystem where sustainability is synonymous with profitability, resilience, and global competitiveness.”
How can small firms respond to shifting investor and client expectations?
Jain says that as ESG principles become a core part of how businesses manage finance, accountants are increasingly relied upon.
“Sustainability is no longer the domain of CSR officers or environmental scientists alone,” he says. “A quieter revolution is taking place—inside boardrooms, balance sheets, and business models—led by a profession you might not expect: accountants.”
SMEs that work with their accountants to leverage sustainability will see improvements in profitability, attract investment, and build brand value. Jain believes there are five key ways accountants are helping businesses align with a low-carbon future.
1. Turn ESG ambitions into business strategy
Firstly, accountants translate sustainability goals into measurable, budgeted actions.
One example is modelling the cost of installing solar panels vs. energy savings. If a small business wants to install solar panels, an accountant can compare the cost with potential energy savings and tax breaks to see if the investment makes sense.
They can also quantify water usage, waste reduction, or emissions in monetary terms, and help leaders assess the financial impact of climate risks such as rising energy prices or future carbon taxes.
“The transformation unfolding is not just environmental or economic – it’s professional. Accountants are no longer simply historians of financial performance. They are becoming navigators of the sustainable future.”
Dr. Rahul Jain, Deputy Program Leader, De Montfort University Dubai
2. Support ESG reporting and disclosure
Accountants can prepare sustainability reports aligned with global standards such as the Global Reporting Initiative (GRI) or the International Sustainability Standards Board (ISSB). They can also verify ESG data for investor and regulator confidence, and guide SMEs through first-time ESG reporting.
This kind of reporting is a critical step for SMEs hoping to become part of larger government or corporate supply chains, where ESG performance is now key for selecting suppliers.
3. Unlock green capital
Whether it’s a green loan or climate-focused venture capital funding, access to capital increasingly depends on clear, credible ESG performance.
Accountants should help businesses track ESG key performance indicators tied to financial incentives, prepare ESG disclosures required by banks or investors and demonstrate improvements over time. This is crucial for performance-based financing.
Jain gives the example of a logistics firm in Sharjah that secured a reduced-interest green loan from a regional bank after demonstrating a 15% cut in fleet emissions. The figures were all verified by its accountant.
4. Manage ESG risks before they escalate
Accountants play an important role in enterprise risk management (ERM), especially sustainability. They can help assess supply chain risks from climate disruptions or forced labour law, and identify exposure to future regulatory changes, such as carbon pricing or mandatory ESG reporting.
They can also flag governance risks, whether that’s lack of board diversity or cybersecurity vulnerabilities.
5. Educate and empower businesses
Finally, accountants have a role in educating businesses. They can run ESG-readiness assessments, introduce clients to simple tools for emissions tracking or waste auditing and explain how sustainability links directly to business resilience, brand value and long-term profitability.
ESG knowledge is increasingly essential for accountants to provide relevant, future-focused advisory services.
“The transformation unfolding is not just environmental or economic – it’s professional,” says Jain. “Accountants are no longer simply historians of financial performance. They are becoming navigators of the sustainable future – helping businesses cut emissions, attract green capital, and thrive in a fast-changing world.”
“As we look ahead to 2030 and beyond, ESG will continue to be the scaffolding upon which we build a net-zero, knowledge-driven, and inclusive economy. We, as sustainability professionals, are at the helm of that transformation.”
Register here for the free IFA UAE webinar, The evolving role of sustainability in finance, on Friday 30 May. 2:30 PM – 3:30 PM UAE Time| 11.30am – 12.30pm UK time.
