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Executive Summary

The past few months have stirred up a perfect storm in the sustainability landscape. In the US, President Donald Trump’s anti-ESG stance has resulted in the rollback of key sustainability measures, signalling a sharp policy shift. Meanwhile, in Europe, the EU’s Omnibus proposal aims to ease certain sustainability regulations, due to concerns over their impact on business competitiveness and economic growth. While these regulatory changes might seem like a move away from sustainability, they are only part of the picture. The interplay of the evolving policy and regulatory environment with growing investor pressure and shifting customer expectations is transforming the sustainability agenda in complex ways. In this report, we explore these rapidly changing dynamics and examine what they mean for the future of the sustainability services market. 

Table of contents

Shifting global dynamics are reshaping ESG and sustainability
In the US, opposition to ESG is intensifying, driven by political and regulatory changes
In Europe, the Omnibus proposal appears to throw an unexpected spanner in the works
Trends in the sustainability services market

Table of figures

Figure 1. Non-regulatory drivers of sustainability
Figure 2. Five key considerations for sustainability service providers in a changing market
Figure 3. ESG and sustainability consulting service lines
Figure 4. Trends in the sustainability services market, by service line

About the authors

Priyanka Bawa

Senior Analyst
Priyanka is a Senior Analyst in the Verdantix ESG & Sustainability practice. Her current research focuses on ESG and sustainability consulting services and social aspects of ESG regulations, reporting and disclosures. Prior to joining Verdantix, Priyanka led diversity, equity and inclusion (DE&I) research in the legal and environment sectors. She holds a DPhil in Social Policy from the University of Oxford.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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