Global ESG Consultant Market size was USD 14.62 billion in 2024 and the market is projected to touch USD 47.62 billion by 2033, at a CAGR of 15.91% during the forecast period.

Global ESG Consultant refers to a company or person offering advisory services to organizations to adapt sustainable and responsible practices. These consultants help businesses overcome environmental concerns (such as minimizing carbon footprints), social concerns (including the welfare of employees and engaging with the community), and governance practices (such as ethical leadership and transparency). As businesses increasingly focus on sustainability and corporate responsibility, the demand for ESG consultants has grown significantly, driven by regulatory pressures, investor expectations, and consumer preference for socially responsible companies.

ESG consultants provide specific solutions for every company, thereby helping them adhere to global standards and enhance their overall sustainability performance. The services in the market range from strategy development, risk management, data analysis, and reporting. All these services are used by companies to enhance their reputation, attract socially conscious investors, and meet environmental regulations. This growth mirrors the larger trend of businesses moving towards responsible practices as the need for accountability in the corporate world increases. As sustainability becomes central to business strategy, the role of ESG consultants is expected to continue expanding.

ESG Consultant Report Scope and Segmentation.

Dynamic Insights

Environmental issues, like climate change, pollution, and resource depletion, have made a lot of awareness for businesses to act and change to sustainable practices. This has led to a high demand for ESG consultants to develop strategies for companies in line with environmental goals. Social factors such as diversity, labor rights, and involvement in communities have become prominent as stakeholders increasingly expect companies to show positive social impacts. Furthermore, issues of governance in terms of transparency, ethical leadership, and anti-corruption measures are fast becoming central to corporate strategies and therefore fuel the demand for professional guidance.

ESG consultancy services demand will be greatly influenced by both regulatory pressures and investor expectations. Governments around the world are placing more regulatory exigencies on environmental protection and social responsibility, hence compelling firms to achieve compliance. Investors have begun to focus more on companies with good ESG performance. This change of heart on investment is contributing to compelling more businesses to adopt ESG practices to ensure tremendous growth in the market. These drivers continue to grow corporate social responsibility, or CSR initiatives, and heighten the necessity of reputation management, thereby creating greater market growth. As businesses see the importance in sustainable and responsible operations, it is likely to continue demanding a high level of ESG consultancy, as markets evolve to support both challenges and opportunities within this global business context.

Drivers Insights

• Increasing Regulatory Pressures

Companies around the globe face increased pressure as governments globally put in more rigorous environmental and social regulations, leading to higher expectations for adherence to new legislation and standards. With this has emerged a new trend of growing demands for ESG consultants because they help companies address complex compliance needs. For instance, tighter carbon emission regulations and labor rights standards necessitate a company to pursue sustainable activities while enhancing internal governance structures. ESG consultants help businesses stay ahead of the regulatory changes by meeting both local and international standards. Therefore, this driver is powerful in industries such as manufacturing, energy, and finance wherein the regulatory bodies are very close to scrutinizing environmental impacts and governing corporate governance.

• Rising Consumer and Investor Awareness

Due to increasing awareness from consumers and investors about sustainability and social issues, the pressure on companies to adopt more transparent and responsible practices is mounting. Customers are increasingly choosing brands that adhere to their values and ideals, and investors prefer companies with high ESG performance. ESG consultants help businesses understand their current sustainability positions, discover areas that need improvement, and devise strategies for attracting socially responsible investors and consumers. The changing trend in consumer behavior and expectations of investors has boosted the ESG consulting market growth as businesses try to create long-term trust and enhance their public image.

Restraints Insights

• High Costs for Small Businesses

One of the major challenges faced by small and medium-sized enterprises (SMEs) in adopting ESG practices is the cost. Implementing sustainability strategies and achieving ESG compliance often require significant investments in technology, research, and consultancy services. Many SMEs may find these services expensive and may struggle to afford them, limiting their ability to participate in the growing ESG trend. While large corporations may have the financial resources to invest in these services, smaller businesses often face budget constraints, hindering widespread adoption of ESG consulting.

• Lack of Standardized Metrics

Another key restraint in the ESG consulting market is that there is no widely agreed-on metric of ESG performance. What represents good environmental, social, and governance practices in one region and one industry can differ significantly from others. Therefore, consultants will not be able to provide uniform, comparable advice to clients in light of different standards for what counts as good ESG performance. Businesses will also find it difficult to assess their performance and monitor progress and improvement over time without clear, standardized benchmarks. This uncertainty may slow the adoption of ESG practices and diminish the effectiveness of consulting services.

Opportunities Insights

• Growth in Corporate Social Responsibility (CSR) Initiatives

With the increasing emphasis on sustainability and social impact, there is a significant opportunity for ESG consultants to assist businesses in developing robust CSR strategies. Many companies are looking to enhance their reputations and demonstrate their commitment to ethical and responsible operations. ESG consultants can help these businesses design CSR programs that align with their core values and meet the expectations of stakeholders, including employees, customers, and communities. As businesses realize the value of CSR in building brand loyalty and consumer trust, the demand for expert consultancy services is expected to grow.

Segment Analysis

• By Service Type

The ESG consulting market is categorized into different service types that are designed to serve the various business needs. Strategy Development enables businesses to align their operations with long-term sustainability goals by developing specific ESG strategies. Compliance & Reporting ensures businesses meet regulatory requirements and report their ESG activities accurately to stakeholders. Risk Management focuses on identifying and mitigating potential ESG-related risks, helping companies avoid legal, reputational, and operational challenges. Data Analytics & Insights: The company uses advanced technologies to collect and analyze ESG data to provide actionable insights for better decision-making. Sustainability Assessment & Auditing: The company assesses the current ESG performance of a company and identifies areas of improvement. Stakeholder Engagement: Engage with key stakeholders, including employees, customers, investors, and the community, to align ESG initiatives with their expectations and values.

• By End-User Industry

ESG consulting demand ranges across several industries, with specific needs and challenges in each. Corporate Enterprises require holistic strategies to integrate ESG factors into their business models and improve market positioning. The Government & Public Sector requires ESG consulting to ensure that public policies are aligned with sustainability goals and legal standards. NGOs are interested in social issues and rely on ESG consultants to help devise and implement strategies that enhance their impact. Financial Institutions are becoming increasingly interested in the integration of ESG criteria in investment and lending practices, so consultants have to assess risks and opportunities. Energy & Utilities companies are under severe regulatory pressure to reduce their carbon footprint and switch to sustainable energy, so consultants play a vital role in achieving compliance and ensuring operational efficiency. Manufacturing & Industrial sectors need specialized advisory services to help them implement green manufacturing processes and reduce environmental impacts, making ESG consultants the key players in these industries.

• By Consulting Engagement Model

ESG consulting services are offered through various engagement models depending on the client's needs and budget. Project-Based consulting is the best for business with specific, time-bound ESG objectives such as compliance with a new regulation or a sustainability audit. Retainer-Based services involve ongoing ESG support in which consultants work with businesses over an extended period to develop long-term strategies and ensure continuous improvement in ESG performance. Advisory & One-Time Consulting usually happens when businesses require advice from experts regarding a specific problem or challenge such as a merger or a change in governance policies.

• By Firm Size

The ESG consulting market caters to businesses of all sizes, with different needs and challenges. Large Enterprises require sophisticated and all-inclusive ESG strategies that help them manage their large-scale operations and align with global sustainability standards. They have the necessary resources to invest in long-term, specialized ESG initiatives and demand detailed reporting and performance tracking. On the other hand, SMEs may not have much in terms of resources but are still aware of the need to adopt sustainable practices. ESG consultants help SMEs develop cost-effective and scalable ESG strategies that can help them achieve regulatory compliance without putting too much strain on their finances. SMEs usually look for cheaper, flexible consulting services, such as project-based or advisory consulting, to achieve their sustainability objectives.

• By Service Delivery Mode

ESG consulting services can be delivered in a variety of modes depending on the preference and operational needs of the client. On-Site Consulting means that consultants are working directly with businesses at their physical locations to provide hands-on support, workshops, and customized solutions. This delivery mode provides for in-depth assessments and allows for direct collaboration between consultants and business teams. Virtual/Remote Consulting has become popular, especially after the COVID-19 pandemic, as it is flexible and cost-effective. Consultants can offer their services by holding virtual meetings, online workshops, and analyzing data remotely, which makes this an attractive choice for businesses that do not require on-site visits or are located in remote areas. Both delivery modes allow businesses to choose the most convenient and efficient way of receiving ESG consulting services according to their needs, resources, and geographical constraints.

Regional Analysis

Market in North America is mature, and the U.S. leads the market in North America because of the stringent environmental regulations, high demand for corporate social responsibility, and significant investor interest in sustainable business practices. A robust financial sector that emphasizes ESG factors in investment decisions also supports growth in ESG consulting services. Europe follows closely, as the European Union's Green Deal and other sustainability initiatives push companies to meet the stringent climate goals set up, thereby boosting the demand for ESG consulting services. With a country-wise emphasis on sustainable corporate practices by nations like the U.K., Germany, and France, the EU is leading a conscious market.

In Asia-Pacific, ESG consulting is in great demand due to the increasing stress on carbon emissions and social issues in countries like China, India, and Japan. ESG standards are increasingly adopted in this region by emerging markets as foreign investments begin to respond to sustainable factors. Businesses in the same region are also nudged to observe sustainable business practices by a growing middle class and increased environmental consciousness. In addition, Latin America and the MEA region have also been observing growth in the ESG consulting market, although at a lesser pace. Increasing focus on the issues of deforestation, water scarcity, and poverty alleviation in Latin America has led multinational corporations operating within the region to take more interest in ESG strategies. ESG consulting is gaining ground in oil-dependent economies in the MEA region, where diversification and environmental sustainability are on the rise, especially in the energy and utilities sectors.

Competitive Landscape

Large global consulting firms, such as McKinsey & Company, Boston Consulting Group (BCG), and Deloitte, are the major players in the market. These firms provide ESG services from strategy development to compliance, risk management, and reporting. These firms have huge resources, extensive global networks, and industry expertise, allowing them to service large enterprises across a wide range of industries. These firms help businesses integrate sustainability into their operations while managing associated risks. In addition, firms such as KPMG, Ernst & Young (EY), and PwC also have dedicated ESG practices, significantly contributing to market competition by providing specialized consulting services to businesses looking to align with evolving regulatory standards.

In addition to the global consulting giants, there are hundreds of niche and boutique ESG consulting firms specializing in sustainability-only services. Examples include Sustainalytics, CDP (Carbon Disclosure Project), and EcoAct, which have deep expertise in particular areas of ESG, including carbon footprint analysis, sustainability reporting, and climate risk assessments. They tend to cater to clients seeking focused expertise in specific aspects of ESG performance. Another factor that also has led to the entry of new competition, firms like Trucost and MSCI which are providing data-driven insights and analytics for improving the ESG metrics of companies, have witnessed increased demand from multiple industries and remain fluid and competitive in such a scenario as large firms pursue scalability and worldwide reach while small specialized firms make themselves stand apart by providing solutions and deep-rooted knowledge within specific industries.

List of Key Players:

• Bain & Company, Inc.
• Deloitte
• McKinsey & Company
• EY
• KPMG
• Accenture
• Boston Consulting Group
• TATA Consultancy Services Limited
• PA Knowledge Limited
• DSS Sustainable Solutions  

Recent Developments:

• On July 1, 2024, Envoria, a prominent provider of ESG solutions, announced its partnership with Vodafone Business. Together, they have launched the Vodafone Business ESG Navigator, a cutting-edge SaaS solution powered by Envoria’s advanced reporting software. This new offering will help Vodafone Business customers efficiently meet their sustainability needs, particularly in alignment with the upcoming Corporate Sustainability Reporting Directive (CSRD), set to take effect in 2025.

Global ESG Consultant Report Segmentation:

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Global ESG Consultant size and forecast: To identify and estimate the market size for global ESG Consultant market segmented By Service Type, By End-User Industry, By Consulting Engagement Model, By Firm Size, By Service Delivery Mode, and by region. Also, to understand the consumption/ demand created by consumers between 2025 and 2033.
• Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global ESG Consultant
• Market Influencing Factors: To find out the factors which are affecting the market of global ESG Consultant among consumers.
• Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.