Verdantix Benchmark Reveals Four Leaders In ESG & Sustainability Consulting
London – January 6, 2022. Four consultancy firms – ERM, EY, PwC and WSP – lead the market for ESG & Sustainability consulting, reflecting the highly competitive and rapidly growing nature of the sector. Using its proprietary Green Quadrant methodology, independent research firm Verdantix assessed the capabilities of fifteen ESG and Sustainability consultancy firms on their ability to fulfil customer demands to meet regulatory requirements and develop strategies to integrate sustainability into the business.
“The ESG & Sustainability market is undergoing a major transformation as firms grapple with increasing stakeholder demands and a greater understanding of the perils of lack of action on sustainability,” commented Kim Knickle, Research Director. “With more than 18 sustainability consulting acquisitions occurring within the last two years, businesses need help deciphering which consulting firm is best suited for their needs.”
The Verdantix report, “Green Quadrant: ESG & Sustainability Consulting 2022”, provides prospective buyers of ESG and Sustainability consultancy services with detailed analysis to speed up vendor selection decisions. Key findings include:
- ERM, EY, PwC and WSP stand out as the market-leading providers of ESG & Sustainability consulting services.
- The ESG & Sustainability consulting market is still evolving, with all of the firms benchmarked in this study in a strong position to drive growth in the sector. We also see a significant opportunity for other market entrants.
- Firms such as Deloitte, EY, KPMG and PwC are building on extensive experience in financial accounting and regulatory services to provide leading ESG reporting & target-setting services to clients.
- Average Mergers & Acquisitions (M&A) ESG due diligence scores were very low - just 1.3/3.0 across the 15 consultancy firms, signalling a significant opportunity for consulting firms with existing M&A practices to develop an ESG due diligence offering.
- Heritage firms specialising in engineering and environmental professional services such as AECOM, Arcadis, ERM, Jacobs and WSP have utilised strong in-house expertise and digital tools to establish competitive offerings in operational resource transformation and environmental & resource management services for clients.
- ESG & Sustainability consulting firms need to continue to invest in high-quality talent and conduct digital innovation to scale and maintain competitive offerings in the market.
“The heterogenous ESG market forces have widened the ESG and Sustainability consulting service landscape, leading to the emergence of a diverse range of sub-segment leaders - with eight different firms demonstrating market-leading capabilities in at least one sub-sector.” commented Sam Renshaw, Industry Analyst. “Consultancy firms face a choice between specializing in a segment of the market or attempting to provide a holistic service across the multiple sub-segments”