Manual ESG processes such as spreadsheets, email chains, and late-night data consolidation are holding advisory firms back at a moment when clients demand more. Most firms aren’t ready for what is coming. 75% of companies globally lack the policies and systems needed for ESG assessments.
At the same time, less than a quarter of organizations say they have the technology to meet future sustainability reporting needs. In fact, 47% of companies still rely primarily on spreadsheets for ESG data management, even as automation becomes essential. If advisory firms want to stay competitive and ensure their output is accurate, strategic automation will be critical.
ESG automation uses artificial intelligence (AI) to streamline how advisory firms collect, analyze, and benchmark sustainability data. It shifts firms’ roles from data gatherers to strategic advisors, boosting credibility, reducing risk, and unlocking new insight. Here’s the roadmap.
The growing urgency for ESG automation in advisory firms
Advisory firms juggle client expectations, shifting regulations, and reputational risk. Regulations like the Corporate Sustainability Reporting Directive (CSRD) and standards like the International Sustainability Standards Board (ISSB) raise the bar on speed and accuracy.
Yet 81% of executives rank controls such as documentation, review, and certification among their top ESG reporting challenges. These are processes long established in financial reporting but still developing in ESG. So what’s an advisory firm to do?
They are tasked with delivering more (higher volumes, more accurate data, deeper insights) without expanding staffing. Enter AI-driven automation for ESG. Automation enables scale, consistency, and clarity, turning audits from painful compliance checks into ongoing strategic tools. If you currently conduct client ESG work manually, it’s time to step up.
Why manual ESG audits fall short
Manual ESG audits rely heavily on spreadsheets, email chains, and fragmented data pulled from multiple sources. This approach is resource-intensive and often leads to errors that undermine the value of advisory work.
The main challenges are:
- Multiple formats and inconsistent inputs: ESG information arrives in different templates and reporting styles, making it hard to reconcile.
- No easy benchmarking: Without standardized data, comparing a client’s disclosures to peers or industry norms becomes a manual, time-consuming task.
- Shifting frameworks that are not updated systematically: Voluntary guidelines and mandatory standards evolve quickly. Advisors who track them manually struggle to stay up to date.
- Routine tasks that drain team energy: Collecting, cleaning, and validating data eats up time that should go toward analysis and recommendations.
- Supporting clients with immature ESG practices: Many clients have little internal infrastructure for ESG, so advisors take on basic data-gathering roles.
These weaknesses lead to missed deadlines, poor comparability, and higher compliance risk. They also reduce client trust, as firms spend more time chasing data than providing insight. Advisors who continue to rely on manual processes are at risk of falling behind both client expectations and market standards.
Four benefits of AI-powered ESG solutions
Automation can transform advisory firms into strategic partners for ESG. Here are four benefits, supported by data.
1. Improve accuracy and speed
Manual entry leads to typos, misaligned figures, and flawed logic. Manual processes are time-consuming and error-prone, often delaying deadlines or resulting in inaccurate reporting. Instead, AI validates data, flags inconsistencies, and aligns disclosures with frameworks in real time. This cuts turnaround from weeks to hours and allows advisors to act before risks escalate.
2. Build client confidence
Automation creates credible audit trails. As regulation tightens, this matters. Many new regulations such as CSRD will mandate external assurance. For advisory firms, audit-ready reporting helps win trust and repeat business.
3. Support collaboration and client engagement
Shared dashboards consolidate progress in real time. Clients can see status, benchmarks, and gaps, transforming ESG work from a quarterly reporting task into an ongoing conversation.
4. Strengthen sustainability strategy
Automation supports consistency, enabling comparisons across business units and peers. Advisors can highlight carbon-intensive hotspots or diversity opportunities and tie them to financial or operational impact.
| Case study: How South Pole uses automation to simplify disclosures and drive action South Pole, a global climate consultancy, faces the same challenge as many advisory firms: helping clients navigate multiple, overlapping disclosure requirements. With regulations varying across regions, compliance can quickly become complicated. By leveraging Manifest Climate, South Pole streamlines disclosure gap assessments and peer benchmarking. Instead of relying on spreadsheets or PowerPoint decks, consultants use the platform to identify where clients fall short, compare performance to peers, and translate requirements into clear next steps.The result is greater efficiency and impact. Manual research that once slowed engagements is now automated, enabling South Pole to quickly establish client baselines and spend more time on strategy. The platform also creates a “home base” for climate data, ensuring progress is tracked consistently even as teams change or regulations evolve. As Harman Gill, Senior Managing Consultant and Climate Risk Lead, explains: “Manifest Climate is really the linchpin that helps consultants, sustainability teams, and policymakers get on the same page, which is a critical first step in driving action.” For advisory firms, South Pole’s experience shows how automation turns complex compliance into an opportunity for leadership, enabling consultants to both simplify disclosures and guide meaningful climate action. [READ MORE] |
How to automate ESG research and analysis for better decision making
The shift from manual to automated ESG work does not happen all at once. Firms need a structured approach to make sure automation aligns with client expectations and internal goals. Here’s a roadmap that advisory firms can follow.
Identify time-consuming, low-margin tasks
Start by mapping where your team spends the most time. Common bottlenecks include compiling disclosures from different departments, reconciling inconsistent client data, and creating custom reports from scratch. These are repetitive, low-value tasks that automation can handle quickly and accurately. Knowing which processes drain resources helps prioritize where to begin.
Define your ideal solution
Before selecting tools, firms should clarify their requirements. Speed, accuracy, scalability, and integration across client accounts are all essential. The ultimate goal is not just faster reporting, but better insights for clients. A clear set of requirements also makes it easier to compare solutions side by side.
Evaluate platforms
When assessing ESG tools, focus on three things: data coverage, flexibility with evolving frameworks, and the ability to generate actionable insights. For example, a strong platform should be able to map disclosures to CSRD, ISSB, or TCFD automatically, and provide benchmarking against industry peers. Platforms like Manifest Climate combine audit-ready data validation with insights that advisors can use to guide client strategy.
Pilot, test, expand
The best approach is to start small. Roll out automation in one business unit, client account, or reporting cycle, then test the outputs for accuracy and usability. Share results with your team and clients to build confidence. Once the pilot proves successful, expand the system to more projects. This phased rollout reduces risk and helps staff adapt to new workflows.
Commit to continuous improvement
Automation is not a one-off project. Regulations and standards evolve, and so should your processes. Advisory firms should gather feedback from clients and staff, monitor regulatory changes, and refine automation settings regularly. Continuous improvement ensures the firm remains compliant, efficient, and future-ready.
The importance of building a culture of audit readiness
Automation is only as effective as the culture that supports it. A culture of audit-readiness is one that prioritizes:
- Logging every disclosure with clear source documentation
- Capturing every change via audit trail
- Treating ESG audits as an ongoing process rather than a last-minute scramble
This mindset reduces compliance anxiety and reduces the inevitable burden of audits and rework. At the same time, audit readiness also encourages innovation. When systems are testable, teams adopt new tools and refine workflows, keeping ahead of regulations and client needs.
| Case study: How Gore Mutual Insurance automated ESG benchmarking A medium-sized Canadian insurer, Gore Mutual Insurance, faced the same hurdles advisory firms do: limited resources, rising disclosure demands (including OSFI B-15), and pressure for board-level assurance .Gaby Polanco Sorto, Vice President and Head of Purpose and Sustainability, recalled: “We were spending a considerable amount of time researching different levels of disclosures. All of that has historically been manual.” By adopting Manifest Climate, Gore Mutual reduced manual research time dramatically. What once took hours now happens in minutes. The platform benchmarked against bigger peers, spotlighted disclosure gaps, and freed up capacity for strategic thinking. Users pointed to ease of use and in-house ESG expertise as key. The result: executives and the board gained confidence in their climate strategy. As Polanco Sorto puts it: “That’s what executives want—the confidence that we’re on the right track. And that’s what Manifest Climate gives our team.” For advisory firms, Gore Mutual’s story underscores the roadmap in action. Automation drives efficiency, audit-readiness, and credibility. [READ MORE] |
Streamline audits and accelerate impact with Manifest Climate
Automation transforms ESG from a reporting burden into a competitive edge. With platforms like Manifest Climate, advisory firms can deliver faster insights, reduce compliance risk, and scale services without adding headcount. Audit-ready outputs give clients, boards, and regulators confidence in the integrity of their disclosures.
The strategic advantage is clear. Firms that automate move beyond compliance troubleshooting to become trusted ESG partners. They can benchmark clients against peers, link ESG performance to business outcomes, and provide the timely guidance that strengthens client relationships.
As regulations like CSRD and ISSB expand globally, firms that adopt automation today will be better prepared for tomorrow. Manifest Climate enables this shift by consolidating ESG inputs, aligning them with frameworks, and delivering decision-ready insights at speed.
Book a demo to see how Manifest Climate helps advisory teams build audit-ready, future-proof ESG services.
