Sustainability Consulting and ESG Advisory Services Market Size, Share, Growth, and Industry Analysis, By Type (Strategy and Planning; Technical Support; Testing, Auditing and Verification & Sustainability Marketing), By Application (Chemicals; Building and Construction; Agriculture, Food and Beverage & Mining, Oil and Gas), and Regional Insights and Forecast to 2033

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SUSTAINABILITY CONSULTING AND ESG ADVISORY SERVICES MARKET OVERVIEW

The global sustainability consulting and esg advisory services market stood at approximately USD 17.63 billion in 2024 and is set to rise to USD 20.01 billion in 2025, maintaining a strong growth trajectory to reach USD 48.57 billion by 2033, at a CAGR of about 13.5%.

The Sustainability Consulting and ESG Advisory Services Market is aimed at bringing organizations to adopt sustainable solutions and achieve ESG requirements. These services assist in the management of business activities by increasing organization productivity, meeting legal requirements, and promoting social accountability. The market appears driven by increasing demand for ethics and transparency, especially in business operations, to influence sustainable corporate strategies. It encompasses consulting companies covering such services as the assessment of the environmental effects and risks or the minimization of carbon footprints and ESG report production.

COVID-19 IMPACT

"Sustainability Consulting and ESG Advisory Services Industry Had a Positive Effect Due to Sustainability Priorities during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic has boosted sustainability consulting and ESG advisory services demands since companies sought resilience, sustainability, and accountability. The issues exposed during the financial crisis resulted in various organizations practicing environmental and social governance. Consequently, there was change in the market; there was increased focus on ESG reports and climate risk. This has resulted in a drastic increase in the number of post-consultancy consulting firms associated with the post-pandemic business models.

LATEST TREND

"Market growth driven by climate risk management"

The latest trend identified in the sustainability consulting and ESG advisory services market is the focus on climate risk management and carbon footprint reduction. Corporations are paying more attention to the insight on how they can manage their business with a view to implementing sustainable development goals worldwide. This trend is thus enhancing the need for advisory services that can help with carbon neutral and net zero projects. Since firms are increasingly considering the long-term costs of doing business, there is growing demand for environmental consulting services.

SUSTAINABILITY CONSULTING AND ESG ADVISORY SERVICES MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Strategy and Planning; Technical Support; Testing, Auditing and Verification & Sustainability Marketing

• Strategy and Planning: This segment is dedicated to working with organizations to integrate the subject of sustainability and focus on ESG objectives. Consultants therefore help organizations determine areas that need to be measured and establish quantifiable goals. This service helps companies to be in an excellent place to meet the set legal and social demands of customers.

• Technical Support: In this market, technical support is required for the executive support of sustainable undertakings, for instance, the use of renewable energy and waste management policies. It comprises recommending appropriate technologies for containing energy usage and environmental effects. Specialists in this area assist business entities in using the technology that results in sustainable development.

• Testing, Auditing & Verification: This segment offers the assessment of the compliance practices in the environment for sustainability issues. Another is assurance services to authenticate the ESG disclosure and sustainability reports of companies that are independent. That is, such services assist the businesses in achieving transparency and, therefore, specific stakeholders’ confidence.

• Sustainability Marketing: Sustainability marketing services help firms communicate their sustainability and ESG programs. It involves the generation of ways of presenting sustainability gains to customers, investors, and society in general. Marketing thus assists organizations in achieving their objectives of improving their brand images and promoting their sustainability and corporate social responsibility policies.

By Application

Based on application, the global market can be categorized into Chemicals; Building and Construction; Agriculture, Food and Beverage & Mining, Oil and Gas

• Chemicals: In the chemicals sector, sustainability consulting enables organizations to minimize their project risks whilst creating an environmentally safe environment. An example of ESG advisory services is that they offer companies a wide range of advice on how to follow green chemistry principles and statutory requirements. This is helpful in making sure that the chemical manufacturers enhance their operation productivity while at the same time reducing their emission of carbon.

• Building & Construction: Sustainability consulting in the building and construction industry involves tips on how to make designs energy efficient and using environmentally friendly products. ESG advisory services provide solutions for firms to design and manage sustainable projects from conception to implementation. These services enable affording emissions decreases and contributing to the formation of a sustainable urban system.

• Agriculture, Food & Beverage: ESG advisory for agricultural food and beverage focus areas include sustainability in farming, minimizing waste, and avoiding water wastage. Consultancies offer companies recommendations on attaining product source transparency and equitable employment policies. They also assist in fulfilling the consumer pull for sustainable products and climate-smart farming.

• Mining, Oil & Gas: In the mining, oil and gas industry, sustainability consulting practices are aimed at limiting negative environmental impact, increasing the efficiency of resource use, and conforming to legal requirements. Risk management can be supported by ESG advisory services in view of the integration of sustainability in the context of extraction and processing operations. This helps these industries move from the old, less responsible ways of doing things to the new, more responsible ways.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Market growth driven by global environmental policies"

Governments around the globe are enacting environmental policies, thus forcing organizations to become environmentally conscious. This has increased the Sustainability Consulting and ESG Advisory Services Market Growth to avoid noncompliance. SMEs look for advice to control their impact on the environment, reduce liabilities, and avert penalties.

"Market growth driven by consumer sustainability demand"

Sustainability has recently become an urgent issue among consumers who practice ‘green’ purchase intentions, thus exerting pressure on firms to go green. ESG advisory services enable organizations to run their activities in a way that is compatible with clients’ demands. Such a trend helps brands improve the visibility of their actions and make sustainability part of their business strategy for sustainable future development.

Restraining Factor

"Market growth limited by high costs for SMEs"

Purchased services for sustainability consulting and ESG advisory are costly, and this tends to strain SMEs with thin wallets. The specificity of the approach that requires the creation of unique solutions that would meet the needs of different fields may also discourage organizations from trying to obtain such services. This financial and operating cost can be a constraining factor to the growth within the market.

Opportunity

"Market growth driven by regulatory compliance and climate change"

The increasing focus on regulatory compliance and climate change is expected to create a great opportunity for the sustainability consulting and ESG advisory services market. With world governments and companies adopting the sustainable practices’ legislation, organizations need consultants who will help them meet those legal conditions. It increases the need for ESG advisory services and drives the market in response to this trend.

Challenge

"Market growth constrained by lack of standardized guidelines"

One major issue present in the sustainability consulting and ESG advisory services market is the absence of worldwide standard guidelines for ESG disclosure. This creates conflicts on how companies can follow numerous rules in different regions. Furthermore, it becomes challenging and costly to implement sustainable practices, hence discouraging organizations from getting advisory services, thereby constraining market development.

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SUSTAINABILITY CONSULTING AND ESG ADVISORY SERVICES MARKET REGIONAL INSIGHTS

• North America

"Market growth driven by North America's regulations"

North America continues to hold the largest Sustainability Consulting and ESG Advisory Services Market Share thanks to stringent rules and regulations and clients’ directives for sustainable activities. The United States Sustainability Consulting and ESG Advisory Services Market has a significant position, due to increasing corporate interest in ESG policies and increasing regulatory requirements, which have pushed market demand for advisory services of various industries.

• Europe

"Market growth driven by Europe's focus on sustainability"

Europe remains a key player in the market for sustainability consulting and ESG advisory services because of the progressive legal initiatives in the field of environmental protection and a critical focus on sustainable development. ESG advisory services are popular in the region because of the emphasis on delivering carbon neutrality and sustainable development goals. Sustainability has become an integral aspect of business across European countries, hence driving the market for sustainability solutions.

• Asia

"Market growth driven by Asia's sustainability initiatives"

Asia as a region contributes to the sustainability consulting and ESG advisory services market through rising industrialization and awareness rates of environmental sustainability. The growing trend towards sustainability, as evidenced by China, India, and Japan’s green programs and more sustainable development, is behind the demand for ESG services. Increasing corporate and environmental responsibilities, together with environmental legislation, are applying pressure for this market in the region. The shift towards sustainable business solutions is helping Asia to hasten the market’s growth.

KEY INDUSTRY PLAYERS

"Market growth driven by investment in new services"

The major stakeholders in the sustainability consulting and ESG advisory services market are continuously investing in new services that can solve sustainability problems involving the environment, society, and governance. They are needed for organizations with ESG due to their specialty in regulation, sustainability, and risks. End-user relations with companies within diverse markets also continue to widen their market demand while establishing new technologies.

List of Top Sustainability Consulting and ESG Advisory Services Companies

• McKinsey & Company (U.S.)
• EY (U.K.)
• KPMG (Netherlands)
• Bain & Company (U.S.)
• Deloitte (U.K.)

KEY INDUSTRY DEVELOPMENTS

September, 2023: KPMG announced the expansion of its sustainability consulting and ESG advisory services. The firm is expanding its sustainability offering to guide clients on ESG rules and regulations, climate change, and social impacts. These activities encompass the employment of sustainability professionals, innovation and enhancement of more tools and processes, and affiliations with other institutions. KPMG wants to achieve the establishment of full-spectrum sustainable solutions for clients aimed at the attainment of their ESG objectives and value.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.