A Closer Look at the Key Trends in Sustainability Consulting

Split reporting from advisory, going niche or going big and digitalizing the standardized and repetitive work are some of the major trends in sustainability consulting.

FREMONT, CA: The sustainability consulting industry is fast evolving to meet the increased demand for sustainable business strategies. Sustainability consultants are useful partners, providing experience and direction in navigating the complexities of sustainability concerns and possibilities.

Significant trends in sustainability consulting are listed below:

Split reporting from advisory: As the need for sustainability data develops, consulting firms recognize the need to distinguish reporting and advisory services. Reporting entails gathering, analyzing, and disclosing information about environmental impacts, carbon emissions, and sustainability performance. It demands knowledge of data management, measurements, and reporting frameworks. Advisory services, on the other hand, assist clients to design and implement climate change policies and initiatives. Consultants in this position analyze policy and regulatory landscapes, identify risks and opportunities, and provide suggestions for sustainable practices. Reporting and advisory services require a distinct business model. Reporting is often more recurring than advisory services, enabling recurring revenue. In addition, reporting services are easier to automate with software technology than advisory services.

Finally, various employee profiles can provide reporting and advisory services. Advisory roles often demand specific and in-depth expertise and experience, whereas more generalist and junior profiles can undertake reporting. In short, reporting services are a commodity, whereas advisory services are not. Consulting firms that distinguish between reporting and advisory functions may provide specific experience in each area, assuring accurate and trustworthy sustainability reporting while also providing strategic recommendations for climate action.

Go niche or go huge: With climate change becoming a top priority for businesses, sustainability consulting services face a competitive market. Many new players enter the sustainability consulting market, ranging from small boutique firms in adjacent industries, such as engineering or environmental consultancies, to the big-4 consultancies. To stand out, consultants are increasingly focusing on specific areas of expertise. This focus can be on an industry, such as agriculture, a function, such as project management, or a topic, such as low-carbon freight transportation. As a result, consultants can gain specialized knowledge and provide unique solutions to clients. This strategy enables consultants to become renowned experts in their chosen sector, offering in-depth insights and tailored advice.

On the other hand, some organizations take a broader strategy, offering comprehensive services to clients across industries, including services other than sustainability, such as standard business consultancy. These companies serve organizations that demand comprehensive business strategies by providing diverse services. To excel in a competitive market, consultants must establish themselves as trusted advisors with significant expertise, whether they pursue a specialty or comprehensive strategy.