Covering the UK and Ireland, the team of five headed up by ESG partner Alasdair Green have extensive expertise in this increasingly important field, including a trained B Corp certification leader. The plan is to expand the team to 15 staff in the next six months.

An increasing number of businesses will have to report and be audited on their carbon footprint as part of the Streamlined Energy and Carbon Reporting regulation (SECR) in the UK and Corporate Sustainability Reporting Directive (CSRD) in the EU, with a risk of fines for non-compliance.

The ESG team will provide businesses with comprehensive assessments of their ESG risks and opportunities, including materiality assessments which identify positive and negative social and environmental impacts. They will also offer strategic guidance and transparent reporting through carbon footprint software.

AAB Group is ranked 20th in the Top 75 Firms survey and reported fee income of £77.1m for year end March 2023, up from £44m the previous year, after a significant private equity investment in 2021 from August Equity to fast-track ambitious growth plans. The group now has over 1,000 staff and over the last three years has made a number of significant mergers and acquisitions including Scottish based French Duncan.

Explaining the rationale underpinning the establishment of the new division, ESG partner Alasdair Green said: ‘In today’s rapidly changing business landscape, ESG factors are becoming increasingly important considerations for investors, regulators, and consumers.

‘It has been consistently highlighted that companies performing strongly across all three factors of ESG have been shown to be more profitable, with one study finding up to six times more. These businesses not only mitigate risk, but also stand to gain a competitive edge by fostering long-term resilience and value creation.

‘Our ESG proposition is designed to support businesses in embracing sustainability as a core component of their operations, driving positive outcomes for both society and the bottom line.

‘ESG is considered a key growth area within AAB Group, with plans including further recruitment, team development and training.’

AAB Group stressed that better ESG compliance can contribute to better recruitment and greater retention of talent, access to finance, cost savings, increased profitability and retention of contracts, as well as acquiring new business.

Aveen McShane, ESG director at AAB Group added: ‘Our clients realise that by commencing their sustainability journey, they will not only drive profits, but they will become more resilient, adaptable and avoid the real risk of being left behind.

‘We are here to support forward-thinking businesses with our five-stage pathway. Our goal is to build resilient and future-proof organisations that can meet today’s needs, without endangering those of future generations.’