ESG Advisory

Independent verification of sustainability disclosures while meeting regulatory and stakeholder expectations 

 Organisations are under growing pressure to demonstrate that their ESG disclosures are accurate and independently verified. Internally reported ESG data is increasingly questioned by investors and regulators, while inconsistent methodologies and controls across ESG metrics make it difficult to build credibility with stakeholders. LR Advisory Assurance addresses that gap, ensuring objectivity and credibility in every engagement, and mitigating reputational risk. 

Robust international alignment 

LR Advisory conducts ESG assurance in line with globally recognised standards including ISAE 3410 and AA1000AS, validating the accuracy of ESG data as well as the robustness of governance systems, internal controls and reporting processes that underpin it. Our approach is risk-based and evidence-based, drawing on management interviews, process walkthroughs, site visits and detailed data testing, tailored to the level of assurance required, limited or reasonable, and focused on enhancing both compliance and long-term reporting quality. 

For organisations not yet ready for full assurance, we also offer gap assessments and pre-assurance readiness reviews, helping clients understand what needs to be in place before an assurance engagement begins. 

Our ESG Assurance service typically delivers: 

• Independent assurance of ESG reports and sustainability disclosures
• Limited and reasonable assurance engagements aligned with global standards
• Verification of ESG key performance indicators (KPIs), metrics and underlying data systems
• Gap assessments and pre-assurance readiness reviews
• Clear, transparent assurance statements to support stakeholder confidence
• Strengthening of internal controls, data quality and auditability, with practical recommendations for improvement
• Embedding continuous improvement in ESG reporting systems 

Proven capability 

We have delivered ESG assurance for Saudi Aramco Total Refining and Petrochemical Company (SATORP) for three consecutive years, verified against ISO 14064-3 and API methodology. Our capability spans ESG report assurance, greenhouse gas (GHG) emissions verification, data and control assessments and Environmental and Social Due Diligence. We also partner with Vysus Group for broader and specialised assurance engagements. 

Credible carbon strategies that reduce value chain emissions and support net-zero commitments 

As net-zero commitments intensify, organisations face growing pressure to demonstrate credible progress on residual emissions. The carbon markets landscape is complex and evolving, with significant risk of greenwashing where carbon claims are not supported by robust accounting, additionality and verification. Many organisations also lack visibility and control over emissions within their value chains, making it difficult to identify where insetting opportunities exist. LR Advisory works with organisations to build the accounting frameworks and governance structures that make value chain emission reductions credible and verifiable. 

Insetting, offsetting and Book and Claim 

Carbon insetting involves implementing projects that reduce or avoid emissions within the value chain — for example through the use of low-carbon marine fuels such as biofuels, e-methanol or green ammonia, upgrading vessel efficiency or optimising port and operational practices.  

This is distinct from carbon offsetting, which mitigates emissions elsewhere through tradable emission certificates. LR Advisory helps organisations understand and apply both approaches credibly. Before developing the insetting model or accounting framework, we define boundaries and establish baseline emissions across value chains, identifying and prioritising high-impact decarbonisation opportunities. 

A key mechanism LR Advisory supports is Book and Claim (B&C), a robust accounting framework that enables the distribution of greenhouse gas (GHG) savings across stakeholders in the value chain, allowing them to reduce their Scope 3 emissions.  

B&C separates physical and environmental attributes, helping organisations monetise their sustainability efforts and align with broader regulatory and industry requirements. We also integrate carbon strategies into the organisation's broader ESG and climate frameworks, ensuring insetting and offsetting activity is coherent with wider sustainability commitments. 

Our service typically delivers: 

• Carbon insetting models and Book and Claim (B&C) frameworks
• Advisory on carbon offsetting strategies and credit selection
• Identification of insetting opportunities across operations and supply chains
• Design of governance structures and carbon accounting methodologies
• Independent assessment and verification of B&C systems and carbon projects
• Support with carbon disclosures, claims and reporting
• Net-zero and carbon neutrality planning 

Proven capability 

LR Advisory has developed a B&C framework and tool for Trafigura and Yang Ming Marine Transport Corporation. Our capability spans insetting strategy development, offset project assessment and due diligence, carbon market advisory and net-zero planning, with a strong understanding of voluntary carbon markets and standards. 

Turn climate risk exposure into strategic advantage and credible disclosure 

As regulatory expectations and investor scrutiny intensify, organisations face growing pressure to understand and disclose their exposure to climate-related risks. Physical risks such as extreme weather events and sea level rise, alongside transition risks such as carbon pricing and changing market conditions, can each have material financial consequences.  

Many organisations lack the internal frameworks to identify and quantify these exposures in a way that supports credible decision-making. LR Advisory helps organisations assess their climate risk exposure, build resilience strategies and produce disclosures that meet regulatory and investor expectations. 

Understanding exposure and building strategy 

LR Advisory begins with a scoping exercise to understand the client's operations and exposure. We then identify and assess physical and transition risks using climate scenarios, map risks across the value chain and evaluate potential financial impacts.  

Our work is grounded in the frameworks organisations need to meet, including ISSB, CSRD and EU Taxonomy, and our insights are used to support both resilience planning and ESG disclosures. 

Where physical risks are the primary concern, we assess exposure across assets and operations, from extreme weather impacts to supply chain vulnerability.  

Where transition risks take precedence, we evaluate how carbon pricing trajectories and evolving regulatory requirements may affect business models and asset values. Our outputs are designed to feed into strategy and risk governance. 

We also support the development of climate strategies and decarbonisation roadmaps aligned with net-zero targets and science-based approaches, helping clients integrate climate considerations into long-term planning and enterprise risk management frameworks. 

Our climate strategy and risk assessments service typically delivers: 

• Climate risk and vulnerability assessments covering physical and transition risks
• Scenario analysis including 1.5°C, 2°C and 4°C pathways
• Physical and transition risk registers
• Financial exposure estimates and mitigation plans
• Climate strategy and decarbonisation roadmaps
• Target-setting support, including alignment with the Science Based Targets initiative (SBTi)
• Integration of climate risks into enterprise risk management frameworks
• Climate-related disclosures and reporting support across TCFD, ISSB and CSRD. 

Proven capability 

LR Advisory has experience working with organisations across sectors in the development of climate strategies and climate risk assessments.  

Our capability combines a strong understanding of global climate frameworks and evolving regulatory expectations with practical experience assessing physical and transition risks, enabling climate-related disclosures and developing actionable climate strategies aligned with long-term business planning and resilience objectives. 

Streamline and automate your ESG data management and reporting 

ESG data is often fragmented across systems and geographies, making consistent and accurate reporting a significant operational challenge. Manual collection processes introduce errors and limit auditability, while the absence of real-time visibility into ESG performance makes it difficult to respond to the growing volume of disclosure requests from investors and regulators.  

LR Advisory helps organisations cut through that complexity, replacing fragmented manual processes with integrated, automated ESG data systems that are accurate and auditable. 

Technology underpinned by ESG expertise 

LR Advisory supports clients in streamlining and automating ESG data management through digital solutions. Working with external technology partners, we help deploy advanced ESG platforms that enable automated data capture, centralised repositories and real-time dashboards.  

Our digital systems are underpinned by the right ESG frameworks, strategy and governance, ensuring technology serves the reporting requirement. 

Our approach is diagnostic-led, beginning with an assessment of current systems, data flows and gaps, followed by tailored technology recommendations based on the client's needs and maturity. Implementation is phased to ensure minimal disruption to operations, with a focus on scalability and integration with existing enterprise systems. 

Our service typically delivers: 

• Assessment of current ESG data landscape and system maturity
• Selection and implementation support for ESG digital tools and platforms
• Design of ESG data architecture and reporting workflows
• Automation of ESG data collection, validation and consolidation
• Development of dashboards and reporting outputs aligned with frameworks
• Integration of ESG data into existing enterprise systems
• Automated materiality assessments, KPI tracking and disclosure preparation
• Training and change management to embed digital ESG processes across the organisation
• Continuous improvement and optimisation of ESG digital systems 

Proven capability 

LR Advisory has developed a proof of concept with external technology partners and is positioned to deliver ESG digitalisation projects for clients. Our capability spans ESG data management and architecture, process automation and optimisation, and dashboarding and reporting tools, combined with deep ESG expertise and a strong understanding of maritime industry reporting requirements. 

Meeting the growing demand for transparent, verified emissions reporting 

 Accurate GHG accounting is central to an organisation's climate response, yet many organisations face inconsistent methodologies and significant gaps in Scope 3 coverage that make their GHG disclosures difficult to defend. Regulatory frameworks including the Corporate Sustainability Reporting Directive (CSRD), the EU Emissions Trading System (EU ETS) and the Carbon Border Adjustment Mechanism (CBAM) are increasing disclosure obligations.  

LR Advisory helps organisations produce GHG emissions disclosures that are accurate, credible and aligned with global standards and stakeholder expectations. 

From inventory to verification 

LR Advisory's approach begins with a scoping and boundary-setting phase to define organisational and operational boundaries, working closely with client teams across technical and procurement functions to gather and validate data.  

Robust methodologies are applied throughout, with detailed data checks to ensure accuracy and completeness. Our approach is flexible and tailored to the client's sector and reporting maturity, with support for the automation of GHG data management where needed. 

Our service typically delivers: 

• GHG emissions inventory covering Scope 1, 2 and 3
• Scope 3 screening and calculation support
• GHG reporting aligned with the GHG Protocol and ISO 14064
• Independent limited and reasonable assurance engagements
• Verification or assurance statement for internal or third-party use
• Pre-verification gap assessments and readiness reviews
• Emissions reduction strategy and decarbonisation roadmap
• Recommendations to strengthen GHG data processes and controls. 

Proven capability 

LR Advisory has provided GHG assurance statements for Saudi Aramco Total Refining and Petrochemical Company (SATORP) for three consecutive years.  

GHG reporting has also been delivered as part of broader ESG engagements for clients including Asyad Shipping and Chowgule and Company. Our capability spans Scope 1, 2 and 3 emissions verification, GHG inventory assessments, data and control reviews and pre-assurance readiness, combining technical depth with sector-specific knowledge across maritime and energy. 

Evaluate environmental impacts across the lifecycle and drive informed, sustainable decisions 

Life Cycle Assessment (LCA) is a methodology used to evaluate the environmental impacts of a product, asset or process across its entire lifecycle, from raw material extraction to end-of-life disposal. In the maritime and energy sectors, this covers emissions, resource use and environmental burdens of ships, fuels, infrastructure and operations.  

Regulators, investors and customers increasingly expect organisations to demonstrate what their products and supply chains contribute across the entire value chain, and approvals and financing increasingly require evidence of environmental risk management and compliance. LR Advisory supports clients in turning LCA findings into a credible basis for design decisions and long-term emissions tracking. 

Assessment built around your operations 

LR Advisory works closely with clients to define the goal and scope of the LCA, compile a life cycle inventory (LCI), and assess environmental impacts using recognised tools and databases.  

Our assessments follow ISO 14040/44 standards and can support EU Taxonomy, IMO and GLEC-aligned disclosures. Our approach is practical and sector-specific, built around the realities of maritime operations, and our delivery models are flexible. We can build custom Excel-based models, conduct full assessments or collaborate with other consultants to validate LCA results. 

Our LCA service typically delivers: 

• Cradle-to-grave and cradle-to-gate Life Cycle Assessments
• Product carbon footprint (PCF) calculations
• Identification of environmental hotspots and improvement opportunities
• Comparative assessments between products or scenarios
• Support for Environmental Product Declarations (EPDs)
• Integration of LCA results into sustainability strategy and reporting. 

Proven capability 

LR Advisory conducted a cradle-to-grave LCA for Knutsen and KSOE covering an LNG carrier, and has delivered LCAs for ship dismantling and recycling processes across different geographies for CMA CGM. 

Embedding ESG into procurement practices and supplier relationships across the value chain 

Supply chains are increasingly in focus for regulators, investors and customers demanding greater transparency on ESG performance. Many organisations have limited visibility into supplier practices and upstream impacts, and complex global supply chains with inconsistent ESG standards make it difficult to monitor Scope 3 emissions and supplier performance.  

Regulatory requirements are also tightening, with frameworks including the EU Due Diligence Directive (EU DDD) and Corporate Sustainability Reporting Directive (CSRD) placing direct obligations on organisations to address supply chain ESG risks. LR Advisory delivers practical, scalable sustainable procurement solutions for complex global supply chains, reducing ESG risk and building transparency across the value chain. 

From risk to responsible sourcing 

LR Advisory's approach begins with a diagnostic of current procurement practices and supply chain risks, followed by supply chain mapping, supplier segmentation and ESG risk assessment to identify key hotspots and high-impact supplier segments. We then develop tailored policies, tools and processes, engage directly with suppliers to build capacity and establish ongoing monitoring, reporting and improvement processes. 

For more advanced clients, we support the development of traceability systems, lifecycle data integration and alignment with ISO 20400 and Corporate Sustainability Reporting Directive (CSRD) requirements. We also help link supply chain performance to net-zero targets including alignment with the Science Based Targets initiative (SBTi) and circularity goals. 

Our sustainable procurement and supply chain service typically delivers: 

• Sustainable procurement strategies and policies 

• Supplier ESG risk assessments and segmentation
• Design and implementation of supplier codes of conduct
• Supplier engagement, training and capacity building
• Integration of ESG criteria into procurement processes and systems
• Advisory on Scope 3 emissions measurement and supplier data collection
• Traceability systems and lifecycle data integration for advanced clients
• Alignment with ISO 20400 and CSRD supply chain requirements. 

Proven capability 

LR Advisory has experience supporting organisations across sectors in supply chain sustainability, with capability spanning sustainable procurement strategy, supplier assessment and monitoring, ESG risk management and Scope 3 and supply chain emissions. We have developed supplier screening criteria as part of ESG strategy engagements for Asyad Shipping and Chowgule and Company. 

To find out more, contact Advisory@lr.org or visit lr.org/advisory

Build a clear, credible ESG strategy and the reporting framework to support it 

Many organisations know they need to act on ESG but struggle to identify what's most material to their business and embed it meaningfully into strategy and operations. Fragmented data and the absence of integrated systems make consistent, efficient reporting hard to sustain. LR Advisory structures that process from the ground up, turning fragmented ESG activity into a coherent, repeatable programme that works for the organisation and stands up to external scrutiny. 

Structured for your starting point 

Our ESG Assessment Framework acknowledges current ESG maturity, bridging the gap to desired levels through a bespoke strategy. Engagement is organised across four areas:  

• Governance
• ESG Focus Areas and Strategy
• Impact and Risk Management
• Metrics and Targets. 

This ensures every engagement addresses not just what to report, but how ESG is embedded into the organisation's decision-making, strategy and performance management.  

Our ESG Reporting and Strategy engagements are built around a double materiality assessment, identifying what matters most to each client’s business from both an impact and a financial risk perspective, and using that to drive every decision that follows, from strategy to key performance indicators (KPIs) through to report structure. 

Many clients return at year two or three, when stakeholder expectations have risen and the original report no longer meets the bar.  

Our reporting and strategy service typically delivers: 

• End-to-end ESG strategy development
• Materiality assessment workshops with internal and external stakeholders to identify priority ESG topics
• ESG roadmap with defined KPIs, targets and implementation plans
• ESG reporting aligned with leading global frameworks including Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), International Sustainability Standards Board (ISSB), Corporate Sustainability Reporting Directive (CSRD), Voluntary Sustainability Management for Enterprise (VSME) and EU Taxonomy
• Advisory on ESG data management, automation and system integration
• Embedding ESG into operations through clear governance and performance tracking
• Ongoing support to build internal capability and sustain reporting over time. 

Proven capability 

LR Advisory has been delivering ESG strategy and reporting engagements across the maritime sector since 2021, with multi-year engagements now in place across several clients. We have supported shipping groups, shipbuilders, ferry operators and port operators in aligning with GRI, SASB, CSRD and ISSB, and have conducted environmental and social due diligence for multilateral development banks. We are recognised as a voluntary external reviewer under the ICMA External Review Guidelines and as an independent verifier for GHG data with accredited expertise in ISO 14064 and the GHG Protocol.  

Structuring sustainable finance instruments that align with your ESG strategy and meet lender expectations 

Access to sustainable finance is increasingly tied to the credibility of an organisation's ESG commitments. Green bonds, sustainability-linked loans (SLLs), transition finance and blended finance all require clearly defined key performance indicators (KPIs),  

Sustainability Performance Targets (SPTs) and independently verified ESG data. Many organisations lack the internal capability to structure these instruments effectively, and unclear KPIs or disclosures carry a real risk of greenwashing claims. LR Advisory helps organisations align their sustainability strategy with the right financing structures and meet the expectations of lenders and investors. 

Strategy meets financing 

LR Advisory supports clients in developing Sustainability-Linked Financing Frameworks, defining KPIs and SPTs and ensuring alignment with global standards including those of the International Capital Market Association (ICMA), the Loan Market Association (LMA) and the Science Based Targets initiative (SBTi). Where lenders require Environmental and Social Due Diligence (ESDD), we conduct structured assessments in line with lender requirements, identifying risks and gaps and supporting clients in meeting the conditions of their financing arrangements. 

Our approach begins with an assessment of the alignment between the organisation's sustainability strategy and its financing objectives, identifying the most suitable instruments based on business needs. We then develop tailored frameworks with clearly defined KPIs and SPTs, conduct ESDD where required and support preparation of disclosures and verification documentation throughout. 

Our sustainable finance service typically delivers: 

• Sustainability-Linked Financing Frameworks aligned with ICMA, LMA and SBTi standards
• Advisory on green bonds, SLLs, transition finance and blended finance instruments
• Definition of KPIs and Sustainability Performance Targets (SPTs)
• Environmental and Social Due Diligence (ESDD) aligned with lender requirements
• Second Party Opinion (SPO) and verification statements
• Preparation of investor-aligned ESG disclosures
• Independent review and support for sustainable finance transactions
• Integrating ESG considerations into investment decisions and capital planning. 

Proven capability 

LR Advisory has a track record of developing sustainable finance frameworks and supporting ESG-linked transactions with multilateral organisations including the International Finance Corporation (IFC), Asian Development Bank (ADB) and Afreximbank. LR Advisory is also recognised as a voluntary external reviewer in alignment with the ICMA External Review Guidelines