Global ESG and Sustainability Advisory market analysis and insights

The global ESG and Sustainability Advisory market estimated at US$12.4 billion in the year 2024, is projected to reach a revised size of US$63.6 billion by 2030, growing at a CAGR of 22.7% over the analysis period 2024-2030. Demand is increasing from organizations, big and small, around the globe including governments, corporates and investment firms.

Pressure from investors, consumers, regulators and other stakeholders is driving the prioritization of Sustainability & ESG strategies. Structural factors are creating a necessity to implement sustainable operations to ensure resilience and longevity.

The opportunity to drive additional value, rather than just protect it, through a Sustainability & ESG strategy is encouraging emphasis. Businesses are looking to consultancies for support in embedding Sustainability & ESG strategies into their long-term growth plans.

Sustainable finance and the ESG agenda are now key decision-making criteria for asset managers in allocating funds and investments. “Impact” or “Purpose” investing is increasing year on year, with over 25% of European AuM forecast to be allocated to ESG funds by 2025.

The rapid evolution and breadth of possible solutions has led to a very fragmented market with many new entrants. Consolidation is becoming increasingly important to consultancy businesses looking to expand service line / geographic capability.

ESG and sustainability advisory market key trends

The ESG and sustainability advisory market is characterized by several key trends that are shaping the industry landscape. One prominent trend is the increasing integration of ESG factors into investment decision-making. Asset owners and managers are placing greater emphasis on ESG criteria when evaluating investment opportunities, driving the demand for ESG advisory services to assess and enhance the ESG performance of portfolio companies.

Another key trend is the growing importance of ESG reporting and disclosure. Companies are under pressure to disclose comprehensive ESG information to stakeholders, including investors, regulators, and the public. ESG advisory firms play a critical role in assisting companies in developing robust ESG reporting frameworks, conducting materiality assessments, and aligning disclosures with global reporting standards such as GRI and SASB. Reporting and disclosure segment is projected to record a 26.4% CAGR and reach $5.3 billion by the end of the analysis period.

Supply-chain management and procurement, materiality assessments, sustainable investing and finance, and climate risk and adaptation services are predicted to lead the demand for sustainability consultancy services by 2030. Growth in the Climate change and energy segment is readjusted to a revised 23.8% CAGR for the next 7-year period.

ESG and sustainability advisory market regional insights

The ESG and sustainability advisory market in the U.S. is estimated at US$3.4 billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$9 billion by the year 2030 trailing a CAGR of 24.2% over the analysis period 2024-2030. The Japanese and Canadian markets are forecast to grow at CAGRs of 21.3% and 19.8% respectively over the 2024-2030 period. Within Europe, Germany is forecast to grow at approximately 22.5% CAGR.

In the global Energy & Utilities segment, US, Canada, Japan, China and Europe will drive the 20.3% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$3.8 billion in the year 2024 will reach a projected size of US$7.7 billion by the year 2030. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$5.9 billion by the year 2030, while Latin America will expand at a 17.3% CAGR over the analysis period.

Key players

Key players profiled in the report include Antea Group; Arcadis NV; Boston Consulting Group; Deloitte; Ernst & Young; Inogen Alliance; Jacobs; KPMG; McKinsey & Group; Mott MacDonald; Ramboll Group A/S; RSK Group; Stantec & Cardno; Tetra Tech Inc.; Woodard & Curran; WSP Global Inc. among others.

Global ESG and sustainability advisory market scope

• By service line
  • Strategy and planning services
  • Reporting and disclosure
  • Stakeholder engagement
  • Environmental management & due diligence
  • Climate change and energy
  • Impact assessment and sustainable development
  • Water and waste management
  • Supply chain sustainability
  • Others

• By organization size
  • Large enterprises
  • Small and medium enterprises (SMEs)

• By end use industry
  • Banking, financial services & insurance (BFSI)
  • Manufacturing & industrial
  • Energy & utilities
  • Healthcare & life science
  • IT and Telcom
  • Consumer goods & retail
  • Real estate & construction
  • Transportation & logistics
  • Public services
  • Others

• By region
  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East and Africa

The research report  provides a comprehensive review of market trends, market growth drivers, PEST Analysis, Market growth inhibitors, and strategic industry activities and SWOT Analysis of key players in the market.

The report provides market estimates and forecast for geographic markets such as the North America (US, Canada, Mexico and Rest of North America), South America (Brazil, Argentina and Rest of South America), Europe (Germany, France, U.K., Russia, Italy, Spain, Sweden, Netherlands, Poland, Austria, Norway, Switzerland, Denmark and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Taiwan, India, Australia and Rest of Asia-Pacific), Middle East (Iran, Turkey, Kuwait, UAE, Israel and Rest of Middle East) & Africa.