Sustainability consulting has emerged from the need to provide requisite knowledge to facilitate informed decision making in this area. However, sustainability which was once a vague concept, often coated by layers of ambiguity, particularly when it came to the role of consultancy has become the special knowledge vehicle to drive understanding, accountability and clarity.
As the EU and other governments prioritise the need for genuine transformation to green energy, accountability and transparency have become keynotes in global political discourse, creating the urgent need for knowledgeable guidance on material topics.
At the moment, companies are currently mobilizing to better understand what type of data needs to be collected, so they can identify their current gaps in terms of knowledge and capacity, but also more importantly to explore where the opportunities lie. It is expected that other geographical markets will follow the EU in tightening legislation on standardizing performance data and eliminating green-washing. As a result, more significant sustainability related conversations are now being held in boardrooms all over the world.
The tasks of the sustainability consultant
Sustainability consultants provide strategies and resources to navigate the increasingly complex world of sustainable operations. But what does a day in the life of a sustainability consultant look like? What challenges do they face, and what insights do they offer? The role of sustainability consultants has been more on providing advice on corrective actions depending on the company’s strategy. They also provide regular updates on sustainability-related information relevant to their client’s operations. In most cases, they engage in regular meetings with their clients to assess performance related to energy efficiency and carbon accounting.
However, the reality remains that sustainability is an evolving landscape with a lot of setbacks in collecting reliable data to support the net zero targets outlined by businesses to meet the approved Science-based targets by 2030 and 2050. Furthermore, the sustainability space is facing challenges caused by scandals in the carbon offset schemes coupled with many misconceptions about sustainability which need to be addressed.
Amid the obscure environmental concept, many businesses are still in the resistance stage making it difficult for them to make the shift to embrace sustainability practices. Even, sustainability practitioners find it challenging to understand that sustainable changes should be deep rooted in making an environmental impact and positive social change, not just driven by marketing key performance indicators. It is usually a giant stride for business to strike a balance between long-term non-tangible factors driven by sustainability and short-term immediate financial gains.
Sustainability consulting as a clear career path for the future
The role of a sustainability consultant is indeed an exciting career path, one that is shaping the world of tomorrow. As we’ve seen, the role of a sustainability consultant is multifaceted, challenging, and immensely rewarding. The industry is growing rapidly, offering immense opportunities for those interested in making a real impact on the future of our planet.
As the climate crisis unfolds, the role of sustainability consultants will be more important than ever because sustainability consultants help businesses become lenient to our environment, reducing their costs and improving their efficiency in the process. More businesses worldwide are taking real action in the de-carbonization of their operations by outlining and working to meet their net-zero strategies by 2030 and 2050 respectively.
Below here are the factors that motivate businesses to increasingly adopt more sustainable practices in the way they do business. Let’s delve into each one:
Changing investor decisions
Investors are increasingly factoring environmental, social, and governance (ESG) criteria into their investment decisions. They recognize that sustainable companies are often better positioned for long-term success because they are proactive in managing risks related to climate change, social issues, and governance. This perspective is driven by the understanding that sustainability can influence financial performance, risk management, and company reputation. As a result, investors may apply pressure on companies to improve their sustainability practices through direct engagement, shareholder resolutions, and the integration of ESG criteria into investment analysis. Companies responding to this pressure aim to attract and retain investment by demonstrating commitment to sustainability.
Consumer concern for climate change
Modern consumers are more informed and concerned about the environmental and social impacts of the products they purchase. This awareness has led to a demand for more sustainable, ethically produced goods and services. Companies face pressure from consumers to not only minimize their environmental footprint but also to engage in fair labor practices and contribute positively to the communities in which they operate. In response, businesses are adopting more transparent and sustainable practices, such as using eco-friendly materials, reducing waste, and ensuring fair labor conditions, to meet consumer expectations and drive brand loyalty.
Resiliency of value chains
Value chain resilience refers to the demand for sustainable practices within a company’s supply chain—from suppliers to distributors. This can be driven by several factors, including regulatory requirements, customer demands, and the sustainability goals of the companies within the chain. Companies may require their suppliers to adhere to certain environmental and social standards, and these requirements can cascade down the supply chain, leading to broader adoption of sustainable practices. Similarly, companies might be pushed by their business customers to prove their sustainability credentials to become or remain part of the value chain. This interconnectedness means that sustainability efforts in one part of the chain can influence practices throughout.
Regulatory Pressures
Governments and international bodies are implementing stricter regulations on environmental protection, labor rights, and corporate governance. This regulatory pressure compels companies to adopt sustainable practices to comply with laws and standards. Failure to comply can result in fines, legal action, and damage to a company’s reputation. Moreover, anticipation of future regulations can also motivate companies to adopt forward-looking sustainability practices. By exceeding current regulatory requirements, companies can position themselves as industry leaders in sustainability, potentially influencing the development of future regulations.
In summary, these pressures are not isolated but often interlinked, creating a comprehensive external environment that encourages or necessitates the adoption of sustainability practices. Companies responding effectively to these pressures can benefit from improved reputation, operational efficiencies, and a stronger competitive position.