Why third-party ESG expertise is essential

Every decision a company makes today, from sourcing materials to managing people and data, leaves a lasting trace. ESG is about understanding those impacts and ensuring they contribute positively to society, the planet, and long-term business resilience.

Disclaimer: DNV is an independent third-party consulting company and, naturally, brings the perspective from its experience providing external assurance and advisory services. Nonetheless, this article aims to reflect more broadly on the genuine need and value of engaging external expertise to achieve credible, efficient, and meaningful Environmental, social, and governance (ESG) progress.

Striking that balance can be challenging. Behind every sustainability claim are complex systems, evolving regulations, and the expectations of people who care deeply about what companies stand for. Independent expertise helps turn those ambitions into measurable, credible outcomes. 

The reality is, taking on everything alone can be challenging and costly. ESG transformation is complex, dynamic, and deeply interconnected, making it difficult for any single company or department to manage effectively, especially when ESG isn’t their area of expertise or when sustainability resources are limited.

ESG is complex and rapidly evolving
ESG topics are no longer peripheral – they are integral to how companies operate and compete. Yet, ESG spans an enormous scope: climate risk, supply chain transparency, human rights, diversity, data privacy, circular economy, regulatory compliance, and more.

Adding to the complexity, the regulatory and disclosure landscape is changing at unprecedented speed. Frameworks such as the CSRD, IFRS S1/S2, EU Taxonomy, and CBAM are redefining how organizations measure, manage, and report sustainability performance. Meanwhile, investors, customers, and employees expect verifiable, comparable, and transparent data.

Keeping pace requires dedicated and continuously updated expertise, something difficult for even the most sophisticated organizations to maintain internally.

No company can be an expert in everything
Even organizations with mature sustainability functions can find it challenging to cover this full spectrum internally. Relying solely on internal resources sometimes lead to bottlenecks, knowledge gaps, and slower progress, especially when ESG teams are stretched thin by growing reporting requirements and stakeholder expectations.

External consultants often have the advantage of having faced similar challenges before, across industries and geographies. They understand the broader value chain, have developed tested methodologies, and can help you avoid blind spots and wrong turns. Being “greenfield” and trying to invent everything from scratch may slow you down, expose you to risks, and cost more than if you had sought external expertise from the start.

Just as you’d call on a mechanic to fix your car or a doctor to set a broken bone, ESG transformation benefits from experts with the right tools and experience. ESG should be no different.

Credibility and trust require independence
Trust is the currency of ESG. Regulators, investors, and the public are increasingly discerning of unverified sustainability claims. Self-assessment is no longer sufficient.

Independent third-party verification provides assurance that reported data is accurate, methodologies are robust, and progress is genuine. This external validation not only satisfies legal and investor expectations but also strengthens internal governance by introducing objectivity and accountability.

Organizations that embrace independent assurance early are better positioned to withstand scrutiny and differentiate themselves as credible leaders in their industry.

Managing risk and liability
The implications of mismanaging ESG are growing more significant. Boards and executives face growing legal and reputational risks from inaccurate reporting, non-compliance, or unsubstantiated claims.

Third-party experts help organizations identify blind spots, from incomplete emissions data to overlooked human rights risks, and ensure alignment with the latest standards and regulations. Their role in benchmarking and validation reduces exposure to regulatory challenges, investor concerns, and reputational risks,, while enhancing the integrity of decision-making.

Holistic thinking is key
Sustainability and ESG require holistic thinking. Adopting an integrated approach is instrumental to achieving sustainability performance. Assigning ESG topics to isolated departments risks can lead to fragmented execution and missed interdependencies.

External experts are well placed to facilitate collaboration across functions, provide a helicopter view of risks and opportunities, and help organizations think strategically beyond daily duties and departmental boundaries. This outside-in perspective ensures systemic ESG risks are addressed comprehensively – not in isolation.

Empowering people, not overburdening them
Assigning non-experts to take on sustainability and ESG responsibilities outside of their training can create challenges and unintended consequences. It distracts them from their core responsibilities, jeopardizes delivery in other areas, and increases the risk of stress or burnout.

Some employees are indeed motivated by new sustainability challenges, but they should be supported, not left alone. Working alongside competent and experienced external partners provides confidence, knowledge transfer, and learning opportunities that help both individuals and organizations succeed sustainably.

Efficiency and strategic focus
Building ESG capability internally from scratch can be slow, fragmented, and costly. Experienced external partners bring proven methodologies, tools, and benchmarks, enabling companies to move faster, avoid rework, and deliver measurable results.

By outsourcing complex analyses, reporting preparation, or assurance to specialists, internal teams can focus on strategic priorities and execution, not just compliance mechanics. This partnership model ensures ESG initiatives are both effective and efficient.

Unlocking value and innovation
Third-party advisors do more than ensure compliance – they help uncover opportunities for growth. Through cross-industry insights and comparative benchmarking, they identify where sustainability can drive innovation, cost savings, and competitive advantage.

They also facilitate stakeholder engagement, double materiality assessments, and scenario planning, supporting companies in embedding ESG deeply into strategy and operations. When leveraged effectively, external expertise becomes a catalyst for long-term value creation and resilience.

The changing ESG landscape: From reporting to real impact
ESG reporting is shifting from a “tick-box” exercise to a strategic business discipline. Companies are expected not only to disclose data but to demonstrate measurable progress, credible governance, and authentic commitment.

Third-party involvement is becoming essential in this new reality, ensuring that disclosures are reliable, comparable, and aligned with emerging international standards. Organizations that partner with independent experts are better equipped to navigate complexity, mitigate risk, and turn ESG commitments into tangible business outcomes.

Partner with trusted ESG experts
Building credible ESG performance is a shared journey – one that calls for transparency, courage, and collaboration. No organization can master it alone, and no standard or framework can capture the full depth of your impact.

At DNV, we see our role not just as verifiers or advisors, but as partners helping you turn ambition into measurable impact, ensuring your ESG story is not only compliant, but meaningful.

You don’t try to do it all yourself - doing so can often cost more, take longer, and deliver less. Let’s work together to build trust, resilience, and real-world impact.

11/27/2025 10:42:00 AM