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By: Michaela Pogson
30 Jul 2026 7 min read
ESG and sustainability reporting isn’t just about compliance or doing the right thing. If it’s done right, it can strengthen financial health and long-term growth for small to medium-sized businesses. The challenge for these organisations is how to implement credible ESG and sustainability reporting with limited resources.
This is where an outsourced CFO can step in to add value, applying the same discipline and strategic insight to ESG and sustainability as they do to financial reporting. By integrating ESG into the finance function, smaller organisations can turn complex information into a strategic opportunity, improving data quality, decision-making and long-term business value.
Many smaller organisations struggle to gather accurate financial data, so integrating ESG and sustainability information might feel overwhelming. A CFO or finance transformation leader’s priority is to bring order and consistency to data collection. This involves setting up robust processes for capturing data and designating clear ownership of inputs and validation checkpoints, which can be applied to ESG and sustainability metrics in the same manner it has to traditional revenue and cashflow KPIs.
Strong internal controls help ensure sustainability data is reliable, audit-ready and less exposed to inaccurate or overstated claims. Finance leaders are well placed to apply financial reporting discipline to ESG and sustainability information, improving data integrity and credibility.
When carbon emissions, diversity metrics and other non-financial measures are treated with the same care as financial information, small to medium-sized businesses can trust their data and share it confidently with stakeholders.
An effective finance leader understands accurate and reliable data comes from robust processes. That’s why an outsourced CFO or finance transformation leader will start by reviewing the current workflows and controls. They map out how information flows today, assess whether those processes meet business needs, and identify gaps. They also ensure these processes are aligned with your overall business strategy and objectives. With that understanding, an outsourced CFO will design for a ‘future state’, where ESG and sustainability data considerations are woven into everyday operations.
For example, if reducing your carbon footprint is a strategic goal, integrating that target into procurement and operations processes will become part of how the business runs. The result is an ESG and sustainability program that isn’t separate from your financial management – but is a natural extension of it – reinforcing both sustainability and profitability objectives.
Another advantage of working with an outsourced CFO or finance transformation adviser as a small to medium-sized business is access to the latest financial, ESG and sustainability reporting tools.
They’re up to date on software and platforms that can automate data gathering, track sustainability KPIs, and generate insightful reports. Whether it’s specialised carbon accounting software or enhancements in your Enterprise Resource Planning system, the right technology can significantly lighten the load of ESG and sustainability reporting.
The trick is ensuring any new ESG and sustainability tool integrates smoothly with your existing systems and team workflows. The key is to focus on choosing solutions compatible with existing accounting software and data infrastructure so that sustainability metrics can be captured without disrupting operations.
By leveraging technology in a thoughtful way, an outsourced CFO helps organisations maintain accuracy and efficiency as they expand into ESG and sustainability measurement.
Collecting data is the first step – reporting is where data becomes insight.
An outsourced CFO can guide smaller organisations in implementing ESG and other non-financial metrics into their regular reporting cadence. While external reporting remains important for stakeholder requirements, the real value of ESG data is realised internally when key indicators are embedded in monthly management reports and dashboards alongside financial results.
As an example, real-time, integrated reporting means leadership can understand how energy efficiency efforts are reducing costs or how community initiatives are impacting employee engagement. This visibility turns ESG and sustainability data into a practical decision-making tool, applying the same level of scrutiny used in financial reporting.
Over time, this helps ensure that investments in ESG and sustainability are not only tracked but harnessed to drive better business outcomes.
Finance, ESG and sustainability should work together.
It makes strategic sense to develop them jointly because understanding a business’s financial drivers makes it easier to pinpoint relevant ESG and sustainability data points – and to see how sustainability initiatives contribute to financial success.
For example, if improving supply chain resilience is a financial priority, addressing the environmental and social practices of key suppliers can reduce risk and future costs. Effective waste reduction systems can help organisations avoid purchasing more materials than they need, improving efficiency across both upstream and downstream operations.
When finance leaders treat ESG and sustainability goals as part of the core business strategy it becomes a strong value driver. With finance teams are naturally focused on measurement and ROI, extending that mindset to ESG and sustainability can help the company set realistic targets and invest in projects that yield both social impact and financial returns.
This integrated approach creates a robust cycle: strong ESG and sustainability performance supports financial performance, which provides more capital and confidence to pursue further businesses initiatives. This integrated approach can uncover and address financial challenges that traditional reporting may miss.
An outsourced CFO, can assist with establishing processes that help with accurate and timely financial information so that small to medium-sized businesses have quality information that drives improved resource allocation, supporting sustainable growth.
While ESG and sustainability reporting may feel challenging for smaller businesses, the right financial leadership can help it become an opportunity to improve processes, transparency, and performance.
An outsourced CFO or finance transformation adviser acts as a bridge between sustainability ambitions and practical execution – ensuring that good intentions are backed by solid data, efficient systems, and alignment with the business’s goals.
The result is more than compliance: it’s a stronger, more resilient business that is better prepared for the future.
Article contributed to by Ryan Ferguson – Private Enterprise
From 1 July 2026, superannuation guarantee contributions must be paid on payday, with funds reaching employees’ accounts within 7 business days. This replaces the current quarterly payment cycle and means 15 months of super payments will be made in a 12-month period – a major shift in cash flow management.
In the evolving landscape of family businesses, the Rising Generation is stepping up with a fresh perspective and innovative strategies. One of the most significant shifts we are witnessing is the strategic use of financial data to drive business growth.
In this episode of Navigating the New Normal, Jace Gawne-Buckland, Partner and National Head of the Technology, Media & Telecommunications industry group, and Michael Pittendrigh, National Managing Partner, Consulting & Private Business Tax and Advisory discuss how an outsourced CFO model can complement an in-house finance function.
