Beyond reporting—what are the next big growth opportunities for sustainability consulting?
Reporting and compliance have long been the bedrock of the sustainability consulting market. When clients find the maze of regulation and legislation difficult to navigate, they regularly turn to firms to simplify the process. Even in 2026, with bottom lines tightening, 24% of clients across the globe said that they would be spending on consulting firms to help with their response to regulation.
In the latest in our series of leadership market update articles on growth opportunities for professional services firms, this time we explore client demand in the sustainability market.
The UK government announced changes to sustainability reporting requirements at the end of September 2026. Though the changes have been described as a ‘modernisation’ of standards rather than a relaxation, 52% of UK clients stated in our 2026 Market Trends Sustainability report that they were going to be scaling back initiatives as a direct result of regulatory changes.
Given that regulatory support has been so foundational to sustainability consulting, the UK government’s decision to change its reporting requirements will be viewed by firms with some trepidation. However, the changes in the UK are representative of a global pivot from regulatory prominence, so this is not just a UK issue.
With regulations relaxing, bottom lines becoming increasingly sensitive in a tough economic marketplace, and geopolitical disturbances rendering clients increasingly risk-averse, what does this mean for the future of sustainability consulting?
Firstly, it means a big rethink.
We are seeing the highest levels of clients refreshing their sustainability strategy since we started asking a question about this in 2023.
Myriad changes to the geopolitical and economic environment have sent clients back to the drawing board. The situation has changed, and, as a result, so must their approach.
Sixty-nine percent of clients feel that they need to change their sustainability approach as soon as possible if they are to remain viable in the long term, but the major issue that clients are facing is a lack of clarity about what to do next.
Clients are refreshing their strategies because they know that they need to act, but, with budgets tight, they feel under increasing pressure to get it right. The result of this has been a reluctance to act without proof of success. Clients are no longer targeting first-mover advantage and the number with ambitions to become sustainability leaders has also dramatically reduced.
Clients want strategies that will benefit both their sustainability credentials and their businesses’ economic health. As a result, clients are increasingly likely to look to their competitors for ready-made, proof-of-concept industry solutions.
However, this lack of direction is an opportunity for firms.
Clients know that they need to act but aren’t sure how to do so most effectively. They recognise that they are at a critical juncture and want expert support to guide them through it.
Rather than radical solutions, the mood of economic caution means that they will be happiest paying for strategies that have already worked in their industries, and firms must have this front and centre in their pitches to clients when looking to win work. Those that can effectively provide case-study-backed strategies will be best placed to benefit from the slew of strategy refreshes that we can currently see taking place.
How is AI evolving the sustainability consulting space?
Client demand is shifting, with AI driving much of the change. After grappling with new tech in 2025, clients have let it bed in—and 89% are now using AI in their sustainability initiatives.
It’s already central to regulatory work: 44% integrated AI primarily to speed up compliance, while another 26% expect it to improve reporting accuracy.
While 51% plan to use AI tools to automate ESG disclosures, they don’t want a cookie-cutter approach to AI initiatives across the whole of their business; instead, they want tools that make a meaningful impact on their specific processes. Sustainability clients are targeting AI-enabled predictive energy management and climate risk modelling. Beyond immediate efficiency, both highlight a broader shift across consulting: the demand for proprietary AI.
Clients no longer just want off-the-shelf software. They want bespoke systems built for their unique operations, something we touched on in our interview with Gigaton in this year’s Sustainability report. The more tailored the tool, the smarter the automation, allowing systems to automatically trim energy waste and more effectively manage material output.
The demand is undeniable: 71% of clients want to use AI for predictive energy management, and 57% want tools to evaluate business-specific climate risks5. The better the AI understands the business, the sharper its predictions.
Ultimately, sustainability is serving as a proving ground for the wider consulting space. As AI matures, clients will demand increasingly tailored systems that leverage company data to streamline operations and mitigate risk.
What can firms do next?
If you know where to look, there are real opportunities for firms in the sustainability consulting space. Source has an immense amount of data about sustainability services and the wider professional services market, which can help you size the potential market for your firm and talk authoritatively to clients about where you can provide the support they need. Get in touch if you’d like to explore this data further and talk to our industry experts.