As companies prepare to comply with emerging sustainability reporting requirements, some finance teams are bringing in a new member to share the workload—the ESG controller.

According to Kristen Sullivan, an audit and assurance partner at Deloitte & Touche, this role has begun to appear over the past year or two at large companies and some mid-sized or even private firms that see the business opportunity in providing higher-quality, auditable data in environmental, social, and governance (ESG) reports.

The ESG controller's responsibility is to introduce and establish a set of controls and a systematic approach for how companies obtain ESG-related data and prepare disclosures, ensuring the entire process is more controlled and systematic than in the era of voluntary sustainability reporting. Sullivan also leads this Big Four accounting firm's sustainability and ESG services division.

"As regulation advances and board obligations strengthen, discussions and updates between audit committees and financial control teams about confidence in internal controls over reporting have significantly increased in frequency," Sullivan said.

Depending on the company structure, the ESG controller typically reports to the corporate controller or the chief financial officer (CFO). They usually hold credentials such as certified public accountant (CPA) or certified management accountant (CMA), along with additional background in estimation methods and proxy data—skills often needed for sustainability reporting data such as greenhouse gas emissions or kilowatt-hours.

Currently,more than 50 Fortune 100 companieshave an ESG controller role, a position that "barely existed two years ago," according to a Trellis report, which cited Mastercard ESG controller Tarynn Zenk as part of that group. More companies may be following suit.Gap Inc. is hiringan ESG controller, according to a listing on job platform Indeed, with a salary range of $112,100 to $148,500. Gap did not immediately respond to a request for comment.

The U.S. Securities and Exchange Commission's (SEC) climate risk disclosure rule passed in March is pushing companies such as payment firm Corpay todouble down on ESG reporting strategies, although the rule has been stayed by a court, CFO Dive previously reported.

Hiring an ESG controller is just one part of the measures and structural changes companies are taking to prepare for the anticipated increase in global, regional, and local disclosure requirements.

For example, the share of companies where the chief sustainability officer (CSO) is responsible for ESG disclosures has risen from 42% in December 2022 to55%, although 47% of companies still rely on the CFO for these duties, according to Deloitte's 2024 sustainability action report released this summer. Additionally, more than half of companies have established cross-functional ESG working groups, up from 21% in March 2022.

The report also noted that, beyond hiring, other common measures companies are taking to support greenhouse gas emissions measurement include establishing oversight through disclosure committee reviews and accelerating reporting timelines. The report surveyed 300 executives at public companies in January.

"What we're seeing... is a very clear and consistent intensified focus on preparing for the shift from a voluntary to a regulatory environment," Sullivan said.