Believe it or not, it wasn’t long ago that Sustainability Consulting barely existed. Now, not only is it a global business, but in a few short years over a billion dollars will be spent on it:
“Ten years ago, the sustainability consulting market didn’t exist as a separate category of consulting work” commented Yaowen Ma, Verdantix Analyst and author of the report. “That’s not true anymore. In 2015, large corporations will spend $877 million on management consulting advice relating to sustainability reporting, energy efficiency, sustainability risk assessment, sustainability strategy, sustainable supply chains and product sustainability.”
The independent research firm Verdantix interviewed 260 heads of sustainability in 13 countries across 21 industries and financial data from 5,662 firms.
It paints a picture of a sector in reasonable health, predicting sustainability spend by the world’s largest firms will continue to grow at four per cent a year through to 2020. Supply chain and resource management, energy management, and risk and compliance engagements will continue to dominate consultancy spending, accounting for about two thirds of the market.
Meanwhile, a number of areas are expected to exceed the baseline growth, as companies respond to new environmental regulatory requirements and a growing number of firms seek to emulate the likes of Apple, Unilever and IKEA by adopting company-wide sustainability strategies. Similarly, the market could see pent-up demand in China and India unleashed, given the two emerging superpowers currently account for just 19 per cent of global sustainability consultancy spending.
Interested in seeing what Sustainability Consulting is all about? Contact SLM today!