By: Stephen Davies, CMC, Founder & Managing Director of Transformation by Design.
Why Sustainability is Critical for Management Consultants: Navigating the Future of Sustainability Practices
As someone who's been in consulting for years, I've seen firsthand how the role of management consultants has evolved. Sustainability is no longer just an afterthought; it’s a core component of how businesses need to operate if they’re going to succeed in the long term. For Certified Management Consultants (CMCs), embedding sustainability into client engagements is not only about fulfilling a professional obligation—it’s about ensuring the client is resilient and can face the increasingly uncertain future, as well as protecting the public from irresponsible business practices.
Why Sustainability Matters Now More Than Ever
We are living through an era where environmental degradation, social inequality, and climate change are no longer distant concerns—they’re at the forefront of every serious business conversation. The World Economic Forum's Global Risks Report 2024 paints a stark picture: we’re facing what they call a "poly-crisis" of environmental and social issues, from biodiversity loss to threats against democratic institutions. These aren’t isolated problems; they’re interconnected, and businesses are realizing they can’t ignore them any longer.
For CMCs, this means the time to act is now. Our clients are increasingly aware that “business as usual” won’t cut it anymore, but many don’t know where to start. This creates a real opportunity for us to step in and guide them. According to recent studies, 88% of global executives believe sustainability is key to their company’s long-term success, yet less than 52% have incorporated sustainability into their core strategies. That’s a gap we can fill.
The Current State of Sustainability in Consulting
The demand for sustainability consulting is growing, but we’re still in a phase of evolution. Data shows that the sustainability consulting market is projected to grow at 10.2% annually, reflecting the rising demand for guidance on Environmental, Social, and Governance (ESG) issues. Yet, despite this growth, only 36% of consultants have in-depth expertise in sustainability.
There’s a significant opportunity for CMCs who want to specialize in this area. More and more businesses are seeking advice not just on how to comply with regulations but on how to fundamentally shift their business models to be more sustainable. This means consultants need to deepen their expertise in ESG and be ready to help clients navigate increasingly complex regulatory landscapes.
I’ve found that nearly 70% of investors now apply ESG criteria in their decision-making processes, forcing companies to adopt more robust sustainability reporting that reflects the material impacts on their business. This, in turn, means that we as CMCs need to stay ahead of these trends, helping clients not just meet regulatory requirements but thrive in a future where sustainability is a competitive advantage.
Our Role as Consultants: Guiding Businesses Toward a Sustainable Future
For CMCs, our Code of Professional Conduct makes it clear that sustainability is a professional responsibility. Two key competencies stand out:
- Recommending solutions that align with sustainable development principles (G1.1)
- Demonstrating corporate and social responsibility in both our own organizations and our clients' (G1.2)
These competencies reflect the broader role we play—not just as advisors for short-term business challenges but as partners in shaping long-term, life-giving futures. If we recommend sustainable solutions, we are helping to create more resilient businesses and, by extension, a more sustainable society.
To truly help our clients, we must go beyond simply suggesting ways to reduce carbon footprints or meet regulatory guidelines. We need to embed sustainability into every aspect of their business models, ensuring that their strategies are socially and environmentally responsible.
Preparing for the Future: Why You Should Attend Our Upcoming Session
In November 2024, CMC-Ontario’s What’s Up Wednesday session will delve into the question, "Why is Sustainability Important for CMCs?" It’s not just a timely discussion—it’s essential for any consultant looking to stay relevant in today’s market.
Our session, facilitated by Lyn McDonell, FCMC, will feature insights from top sustainability experts:
- Bob Willard, Founder and Chief Sustainability Champion at Sustainability Advantage
- Antony Upward, FCMC, Principal at Edward James Consulting Ltd.
- Alana Boltwood, CMC, Senior Manager at KPMG LLP
These experts will offer valuable perspectives on the current state of sustainability consulting and share real-world experiences on how they’ve incorporated sustainability into their client engagements.
What’s In It for You?
This session will help you:
- Gain Real-World Experience: Hear from leaders who are at the forefront of sustainability consulting, learning from their experiences in sectors ranging from finance to public policy.
- Understand the Evolving ESG Market: Get up-to-date on how the sustainability consulting market is evolving, including what clients are expecting and how the consulting profession is responding.
- Engage with New Initiatives: Learn about the new CMC-Ontario Sustainability Working Group and how it aims to strengthen sustainability within the consulting profession.
By the end of this session, you’ll have actionable insights that you can immediately apply to your consulting practice, whether you’re new to sustainability or have been working in this space for years.
The Future of Consulting Lies in Sustainability
The bottom line is this: the future of consulting is intertwined with sustainability. As companies face growing pressures—from regulatory bodies, investors, and society at large—to adopt sustainable practices, consultants have a crucial role to play. We’re not just helping companies comply with ESG requirements; we’re shaping their strategies for the long-term.
In my work, I’ve seen how consultants who embrace sustainability can lead their clients to not only meet today’s challenges but also to prepare them for a variety of the probable futures that are likely to unfold. The sustainability consulting market is expanding, and with it comes an opportunity for those of us who are ready to lead. We have the tools, the knowledge, and the responsibility to help businesses create more resilient, sustainable futures.
Next Steps: Your Sustainability Journey Starts Now
Whether you’re already working in sustainability or just beginning to explore its potential, there’s no better time to dive deeper. By attending our upcoming session, you’ll be equipped with the knowledge and tools you need to take the next step in your sustainability journey—personally, professionally, and in partnership with your clients.
So please join us on November 13th, 2024, for a session that promises to not only inform but inspire. Together, we can lead the charge toward more responsible, forward-thinking business practices.
Source Material:
World Economic Forum's Global Risks Report 2024: https://www.weforum.org/reports/the-global-risks-report-2024
Deloitte Report: https://www.deloitte.com/global/en/about/press-room/new-deloitte-research-highlights-increasing-business-concern-about-climate-change.html
ESG Statistics from RBC Global Asset Management: https://www.ai-cio.com/news/esg-principles-guide-70-institutional-investors/
