ESG Consulting Firm Attalea Acquired By EY

ESG Consulting Firm Attalea Acquired By EY

In a move that will bolster its consulting capabilities in Europe, EY has acquired Attalea Partners, a Spanish ESG consulting firm that provides services to private equity funds and investee firms. The acquisition represents a strategic step in the ESG consulting competencies of EY’s Strategy and Transactions (SAT) function. With the incorporation of 11 professionals, this acquisition will enhance the function’s ability to provide clients with a broader range of services. As a quickly evolving and growing market, forecast to reach $16 billion by 2027 (Verdantix ESG And Sustainability Consulting: Market Size And Forecast 2021-2027), the ability to develop expertise to support clients’ broader ESG and sustainability needs is imperative to remain competitive.

EY scored very well in the ESG and sustainability consulting market, with key strengths and differentiators in programme strategy, climate change risk and governance performance management (Verdantix Green Quadrant: ESG & Sustainability Consulting 2022). The addition of Attalea Partners to EY will further enhance its capabilities, as Attalea specializes in ESG due diligence and strategy, action plans for investees, climate change strategy and support in complying with regulatory obligations. Despite mandatory disclosure regulations being a driving force for firms’ uptake of ESG consulting services, Verdantix predicts that investments in voluntary sustainability reporting will further increase demand (Market Insight: 10 Predictions For ESG & Sustainability In 2023).

EY’s acquisition adds to a string of significant M&A activity in the ESG consulting market. For example, Accenture has acquired five sustainability-focused firms over the past 12 months. Such acquisition activity reflects the competitive dynamics at play in the ESG and sustainability services sector, with businesses vying to become leaders in this expanding market. Key market drivers stimulating these acquisitions comprise demand for broader service offerings, expanding disclosure requests, a push to net zero economy, the need to integrate ESG in investment analytics, and increasing climate risks for physical assets.

For consultancies to take full advantage of the opportunity to boost their market share, partnerships with software vendors will play an increasingly important role – especially as voluntary and mandatory ESG reporting continues to impose new requirements (Strategic Focus: Open Ecosystem For Consulting Partnerships). Given that the ESG reporting software market is set to grow at a CAGR of 30% to reach $4.34 billion by 2027, software vendors should partner with consultancies to meet growing demand (Verdantix Market Size And Forecast: ESG Reporting Software Solutions 2021-2027). Similarly, software partners can help consultancies by improving data visibility for more consistent delivery, reducing the time of deployment for digital solutions, streamlining and digitizing data capture, and providing ongoing support to customers with implementation.

To learn more about ESG consulting, software providers and market trends read the full reports: Verdantix Global Corporate Survey 2022: ESG & Sustainability Services Brand Recognition, Verdantix Smart Innovators: Net Zero Consulting Providers, and Verdantix Smart Innovators: ESG Reporting And Data Management Software.