Enjoy this post from the SSC Archives.
In today’s marketplace, sustainability consulting is a catch-all term, used to describe multiple professions. It is important for readers to pay careful attention when an author predicts the growth of the “sustainability consulting industry” since it can be defined in so many ways.
We believe that many of the firms that claim to offer sustainability consulting services are, in fact, offering something quite different. Sometimes it is a narrower subset of services (like energy auditing); in other cases it is simply traditional services (like public relations) focused on sustainability initiatives.
So how do we define sustainability consulting?
In general, organizations purporting to offer sustainability consulting services fall into the following broad categories.
Sustainability Strategy: these consulting firms provide planning and strategy services—usually for an entire organization or division. Sustainability strategy firms help businesses use sustainability as a lens through which to make good business decisions. Their goal is to help clients innovate, gain competitive advantage, satisfy stakeholders (especially customers), and empower employees to integrate sustainability into their day-to-day jobs. This type of firm usually has staff with extensive training in management, business administration, organizational development, and/or change management. Example: Strategic Sustainability Consulting.
Technical Support: these firms focus on one or more technical aspects of sustainability, such as green building design and construction, renewable energy and energy efficiency, waste diversion and recycling, and water and wastewater services. Rather than help the company integrate sustainability into its overall business decision-making processes, these firms tend to tackle discrete projects within a facility or division. Their staff generally has engineering or other technical degrees. Example: ERM.
Testing, Auditing and Verification: these firms provide third-party review of sustainability data—either on a corporate/facility level or a product level—and may provide assurance, auditing, or verification services. A firm in this category may exclusively cater to sustainability data (e.g. third-party assurance of a sustainability report), but will often provide non-sustainability services as well (e.g. third-party assurance of annual reports). Example: UL Environment.
Visioning and Facilitation: these firms focus on the “big picture” of sustainability, working with clients to brainstorm and create new mental models for companies, communities, and societies. These firms tend to be smaller and more radical, since the market for their services is smaller and their goal is to push the boundary of “business as usual.” The principals of these firms come from a variety of backgrounds, but often have training in facilitation techniques like Open Space, World Café, and the Art of Hosting. Example: The Natural Step.
Sustainability Marketing: these firms help clients tell their sustainability story. They range from public relations firms to graphic designers, and have varying involvement in the crafting of the story versus the delivery of the message. Staff at these firms usually has marketing, advertising, design and communications degrees. Many smaller firms in this category will focus exclusively on sustainability marketing, but larger companies will often have only one division devoted to sustainability and focus most of its effort on other communication areas. Example: J. Ottman Consulting.
Sustainability Software: one of the fastest growing areas of the sustainability marketplace is the development and sales of sustainability software—including carbon accounting, EHS management, and sustainability reporting platforms. Many of these companies offer some kind of consulting support, but it is generally related to the set-up and implementation of the sustainability software. While there is some overlap between this category and the Technical Support category, we distinguish the two because the Technical Support companies generally provide a service (e.g. an energy audit) while Sustainability Software companies generally sell a distinct product. Example: Credit360.
Check out our past blog “State of the Sustainability Consulting Industry” to learn more on the background for these findings.