Service providers – including consulting, marketing, legal, and financial advisory firms – have relatively low direct greenhouse gas emissions through their operations. However, their most significant climate impact stems from the entities they serve and the projects they deliver. 

For example, a consulting firm advising on fossil fuel expansion contributes indirectly to increased emissions, while one supporting renewable energy deployment helps drive positive climate action. Through their advisory work, service companies can strongly shape entity strategies and projects, creating major opportunities to advance climate goals and systemic transformation across high-emitting industries.

The ESM helps firms assess their portfolios and business activities across two dimensions: the climate performance of entities and the climate impact of their work. This makes visible where services are accelerating climate solutions, reinforcing business‑as‑usual activities, or driving high‑emissions outcomes. By providing portfolio‑level insight, the ESM supports more informed entity selection and project prioritisation to understand and manage fiduciary risk exposure, build future-fit portfolios and demonstrate credible climate action.