ESG & Sustainability Advisory Market

ESG & Sustainability Advisory Market Outlook 2025 to 2035

The global ESG & sustainability advisory market is forecast to reach USD 82.4 billion by 2035, up from USD 43.2 billion in 2025. During the forecast period, the industry is projected to register at a CAGR of 6.1%. The ESG & sustainability advisory market is moving from an optional corporate function to an essential strategic capability as organizations integrate environmental, social and governance considerations across finance, operations and risk frameworks.

Advisory firms are therefore shifting from reporting and compliance work toward delivering implementation roadmaps, data systems and transition planning that embed sustainability into core business strategy and value creation.

Quick Stats on ESG & Sustainability Advisory Market

• ESG & Sustainability Advisory Market Size (2025):USD 43.2 billion
• Projected ESG & Sustainability Advisory Market Size (2035):USD 82.4 billion
• Forecast CAGR of ESG & Sustainability Advisory Market (2025 to 2035):6.1%
• Leading Service Segment of ESG & Sustainability Advisory Market:Climate Change & Energy
• Leading End-use Industry Segment of ESG & Sustainability Advisory Market: BFSI
• Key Growth Regions of ESG & Sustainability Advisory Market:United States, India, United Kingdom
• Prominent Players in the ESG & Sustainability Advisory Market:Antea Group; Arcadis NV; Boston Consulting Group; Environmental Resources Management (ERM); Ernst & Young; Inogen Alliance, Others

Metric	Value
Industry Size (2025E)	USD 43.2 billion
Industry Size (2035F)	USD 82.4 billion
CAGR (2025-2035)	6.1%

The global ESG sustainability and advisory industry is valued at USD 43.2 billion in 2025 and is projected to reach USD 82.4 billion by 2035, expanding at a CAGR of 6.1%. The market trajectory suggests a steady upward progression, with absolute gains accelerating after 2030 as regulatory frameworks mature and institutional capital demands deeper transparency.

Between 2025 and 2030, expansion will be anchored by disclosure requirements, early adoption of climate-related risk assessments, and baseline reporting across financial institutions and corporates. By 2030 to 2035, growth will be reinforced by implementation of transition plans, supply-chain emissions programs, and integration of biodiversity and social impact disclosures.

One major driver lies in regulatory evolution. Mandates such as the EU Corporate Sustainability Reporting Directive and similar disclosure norms in North America and Asia are forcing companies to seek external assurance and advisory services.

Financial markets also play a decisive role, with asset managers and banks embedding ESG risk assessment into credit and investment policies. This trend fuels demand for expertise in carbon accounting, portfolio stress testing, and due diligence toolkits.

Operational risk management is another factor shaping demand. Industries such as energy, utilities, consumer goods, and manufacturing are required to address emissions, waste, and water usage, leading to long-term advisory contracts.

Push toward circular economy models are generating revenue pools around waste reduction, resource efficiency, and supply-chain stewardship. At the same time, growing litigation and reputational risk around environmental claims are encouraging firms to engage external auditors for defensible ESG strategies.

Technology adoption is expected to reshape service delivery over the forecast period. Digital reporting platforms, emissions tracking software, and data governance tools are being integrated with advisory services to ensure accuracy and efficiency. This convergence enhances scalability and creates recurring revenue opportunities for consultants.

By 2035, firms that can deliver sector-specific insights, compliance certainty, and integrated digital platforms are likely to command premium share. Growth momentum will thus be shaped by a blend of regulation, capital market pressure, operational risk management, and digital enablement across global industries.

Analyzing Key Dynamics of the Global ESG & Sustainability Advisory Market

Regulation and Reporting Requirements as the Core Catalyst

Mandatory disclosure frameworks and standardized reporting rules are the single most important accelerators of advisory demand. As governments and supranational bodies impose laws such as the EU Corporate Sustainability Reporting Directive, SEC climate disclosure proposals, and regional taxonomies in Asia-Pacific, corporates are under pressure to quantify and communicate environmental and social impacts with precision.

These rules require verifiable data, alignment with frameworks such as GRI, SASB, or TCFD, and third-party assurance. Internal teams often lack the expertise to interpret legal nuances or to build compliant reporting systems across multiple jurisdictions. Advisory firms that can provide both regulatory interpretation and practical compliance pathways are well positioned to secure repeat mandates.

Beyond basic compliance, the direction of regulation is increasingly tied to risk governance and financial accountability. Board members and audit committees are being tasked with overseeing ESG data integrity on par with financial statements. This evolution creates ongoing demand for advisors who can design governance structures, internal controls, and data verification systems capable of surviving regulatory inspection.

Investor Pressure and Capital Flows Redefining Corporate Priorities

Capital allocation is being reshaped by investor scrutiny, as asset owners, pension funds, and sovereign wealth institutions integrate ESG into portfolio decisions. Companies seeking access to favorable financing terms are required to demonstrate credible transition plans, measurable emissions reduction pathways, and material social impact initiatives.

Investors are no longer satisfied with voluntary disclosures; they demand quantified, auditable performance that connects directly to financial outcomes. This has elevated the role of ESG advisors, who are now being engaged to map pathways that balance shareholder value creation with sustainability outcomes.

The role of advisory firms is further amplified as ESG-linked debt instruments, transition bonds, and sustainability-linked loans expand. Structuring these products requires detailed baselines, performance indicators, and monitoring frameworks.

Advisors act as critical intermediaries between corporates and investors, ensuring that targets are ambitious yet achievable and that reporting satisfies financiers’ expectations. As capital markets increasingly penalize greenwashing or weak commitments, companies see strategic advisory support not just as a compliance function but as a mechanism to secure capital at competitive costs.

Operational Risk and Resilience as Strategic Drivers

Corporates face mounting operational vulnerabilities linked to climate change, supply-chain complexity, and resource constraints. Carbon hotspots, water stress, biodiversity impacts, and workforce risks are no longer theoretical, they are material financial risks that disrupt operations and reputation.

Advisory firms offering holistic solutions that go beyond disclosure to hands-on mitigation have a unique edge. Decarbonization roadmaps, water management strategies, and biodiversity risk assessments are being sought by firms under pressure to reduce operational exposures while maintaining profitability.

Resilience is also being redefined in terms of supply-chain stewardship. With regulators and consumers demanding accountability for emissions across Scope 3 categories, companies are compelled to engage advisors with expertise in supplier engagement, data collection, and intervention design.

Advisory contracts now span supplier audits, digital monitoring systems, and collaborative decarbonization programs. This creates an ecosystem where advisory services are not only about compliance but also about safeguarding operations from shocks, improving continuity, and maintaining investor and consumer trust.

Inconsistent Metrics and Measurement Systems

One of the most significant restraints comes from the lack of standardized ESG metrics. Companies often use different measurement frameworks, creating inconsistencies that limit comparability across industries and geographies. Advisory firms are forced to navigate fragmented datasets, incomplete disclosures, and evolving methodologies before they can deliver meaningful insights.

This process increases costs, slows project initiation, and makes benchmarking across clients a cumbersome exercise. The absence of universally recognized standards also raises questions about data credibility, reducing investor and regulatory confidence in reported outcomes.

Advisors frequently need to set up or redesign client data pipelines before conducting deeper analysis, adding a layer of time and expense that can weaken project margins. Verifying the accuracy of supply-chain data, carbon accounting, or social metrics becomes a resource-intensive process. Until a stronger global consensus emerges on metrics and verification systems, advisory firms will face inefficiencies that limit scalability and create bottlenecks in delivering timely, high-quality engagements.

Regulatory Fragmentation Across Jurisdictions

Global companies encounter serious complications from uneven regulations across regions. Different countries and blocs have varying disclosure mandates, taxonomies, and enforcement models, often with conflicting requirements. For multinational firms, this means compliance strategies must be tailored country by country, resulting in duplication of effort and higher advisory costs.

ESG advisory providers are compelled to manage these complexities by recruiting legal specialists and regional regulatory experts, which inflates overhead and extends delivery timelines.

This patchwork of rules makes it harder for advisory firms to develop standardized offerings. Instead of deploying repeatable frameworks, they must customize services for each regulatory landscape, which reduces efficiency and profitability.

For clients, fragmented compliance obligations create fatigue, leading some to view ESG requirements as burdens rather than value drivers. Until international convergence improves, this lack of harmonization will remain a critical barrier to both corporate adoption and advisory scalability.

Shortage of Skilled Professionals

Another pressing constraint lies in the scarcity of skilled professionals who can combine environmental science, finance, and data analytics. ESG advisory is a multidisciplinary field, requiring expertise in climate modeling, accounting standards, digital systems, and stakeholder engagement.

The talent pool is limited, meaning that advisory firms often struggle to staff complex projects with the right mix of competencies. This talent gap delays project initiation and constrains the number of simultaneous high-quality engagements a firm can manage.

To bridge this shortage, firms are forced to invest heavily in internal training programs or compete aggressively for niche specialists. Such measures increase operating costs and turnover risks, while also creating vulnerabilities if key personnel leave mid-project.

Without sufficient human capital, the sector risks becoming overstretched, delivering slower results at a time when demand is accelerating rapidly. Over the next decade, talent development will be a critical bottleneck shaping market performance.

Regional Trends of ESG & Sustainability Advisory Market

Advisory demand in North America and Western Europe is being shaped by regulatory escalation and capital-market expectations. In North America, corporates are moving from voluntary disclosures to embedding climate scenario analysis, transition planning, and supply-chain resilience into risk frameworks. State and federal regulations, coupled with investor stewardship, drive the need for finance-integrated advisory and robust data analytics.

In Western Europe, stricter disclosure mandates and double-materiality requirements set a higher baseline, with projects centered on sector-specific decarbonisation and nature-related risks. A crowded market is fueling consolidation, pushing advisory providers to combine technical depth with systems-level strategic planning.

In Asia-Pacific and Latin America, growth follows divergent paths but converges on rising technical demand. Asia-Pacific is emerging as a frontier, with government net-zero targets and green finance programs stimulating advisory work in supply-chain decarbonisation, green-bond structuring, and energy transition projects.

Multinational exposure accelerates adoption in key hubs, prompting alliances between local specialists and global firms. In Latin America, advisory remains pragmatic and resource-driven, centered on emissions inventories, biodiversity risk, and stakeholder engagement in natural-resource sectors.

Country-Wise Outlook

Countries	CAGR (2025-2035)
United States	12.3%
United Kingdom	10.3%
India	5.6%

From Disclosure to Decarbonisation, the United States to Experience Significant Deployment of ESG & Sustainability Advisory Services

In the United States, advisory demand has shifted from voluntary reporting to finance-grade ESG services, with corporates integrating emissions reduction into capital allocation and M&A decisions.

Investor activism, state-level regulations, and corporate net-zero commitments fuel the need for advisors who blend technical credibility with financial integration. This has expanded opportunities for long-term, cross-functional engagements that go beyond disclosure into supply-chain decarbonisation and operational transitions.

The voluntary market for sustainability-linked finance and green bonds has created mandates around KPI design, verification, and impact reporting. Competition is intense, so advisory firms differentiate through sector expertise and partnerships with engineering and data providers.

The premium lies with firms that connect capital-raising to operational delivery, and demand for talent combining climate science, finance, and analytics continues to rise.

• Finance-grade disclosure and capital integration drive market momentum
• Partnerships across strategy, engineering, and data firms deliver end-to-end solutions
• Talent with blended climate and finance skills remains a critical constraint

Regulation Meets Strategic Advisory, driving Growth of the Market in the United Kingdom

The United Kingdom has emerged as a hub where compliance and strategy intersect. Tight regulations around disclosure, double-materiality, and transition planning create steady demand, while London’s financial markets add opportunities in sustainability-linked finance. Advisory firms distinguish themselves by combining compliance expertise with strategic decarbonisation planning, positioning themselves as partners in transformation rather than compliance vendors.

Industry clusters in finance, energy, and services demand specialized advisory, fueling consolidation as large consultancies acquire technical boutiques. With companies focused on net zero and nature-related disclosures, advisory projects increasingly emphasize nature-positive pathways, carbon markets, and stakeholder engagement. Advisors that combine policy knowledge with financial outputs secure higher-value contracts.

• Strong regulatory framework drives steady compliance demand
• Consolidation and partnerships boost specialist advisory capacity
• Nature-related risk and net zero transition create new premium services

Policy-Driven Growth and Execution-Centric Advisory drives Growth in India

India’s advisory market is expanding rapidly under regulatory, investor, and supply-chain pressures. Corporates demand external support for emissions inventories, renewable energy procurement, and community engagement, with a focus on executional and locally adapted solutions.

Advisors who combine on-the-ground data collection with scalable digital tools gain a strong advantage, often through partnerships between global firms and local specialists.

Policy-driven demand is rising as businesses align with national climate goals and renewable energy targets. Advisory opportunities extend into compliance, funding access, and green bond structuring, while investor interest from development finance and impact investors creates new project pipelines.

Local capability is improving through training and academic partnerships, making India one of the fastest-growing markets for practical, execution-focused ESG advisory.

• Execution-focused services dominate demand, supported by policy signals
• Partnerships between global and local firms enhance delivery reach
• Talent development strengthens scalability and lowers project costs

Analyzing Key Categories in the Global ESG & Sustainability Advisory Market

Adoption of ESG practices is no longer treated as a side program. Boards, lenders, and public agencies are requesting decision grade evidence on climate exposure, environmental liabilities, and social outcomes, which has lifted advisory budgets into multi-year programs. Demand is concentrated where regulatory pressure, capital allocation, and operational risk intersect.

The most promising service lines are the ones that convert complex disclosure and risk topics into measurable action plans, while the most active industries are those facing immediate scrutiny from regulators and financiers.

Transition Roadmaps and Renewable Procurement Shaping Climate Change and Energy Advisory

Climate change & energy advisory has gained significant traction in recent years. Decarbonization planning has moved from one off footprint exercises to integrated transition roadmaps. Scope 1 to 3 baselines are being built into financial planning, with science-based targets translated into capital projects and energy procurement strategies.

Power purchase agreements, renewable energy certificates, onsite generation screens, and demand side efficiency programs are being evaluated against cost curves and policy incentives.

Scenario analysis and internal carbon pricing are being embedded into risk committees. Providers win where technical energy modeling, sector templates, and assurance grade documentation are combined.

Digital measurement and reporting tools matter, but clients value domain expertise in complex sectors such as metals, chemicals, and aviation. Repeatable playbooks for supplier engagement and portfolio emissions reduction secure multi-year engagements across regions.

• Recurring demand is anchored by disclosure mandates, lender expectations, and insurance pricing tied to climate risk.
• Revenue mix is shifting toward transition plan design, renewable procurement advisory, and supplier decarbonization programs.
• Differentiation is created through sector specific models, high quality data governance, and integrated assurance capability.

Portfolio Stress Testing and Green Finance Catalysing ESG & Sustainability Advisory in the BFSI Sector

Banks, insurers, and asset managers are reshaping risk frameworks to price climate and environmental exposure across portfolios. Financed emissions baselining, scenario-based stress tests, and sector alignment policies are being embedded into credit, underwriting, and investment processes. Stewardship policies require engagement strategies with measurable milestones, while product teams need frameworks for green and transition finance instruments.

Data lineage, model governance, and external assurance are mandated by auditors and supervisors. Large institutions procure multi-year programs that combine risk methodology, data operating models, and disclosure support. Vendors that bridge quantitative finance and environmental science are preferred, especially when they can localize to supervisory expectations across regions.

• Demand is propelled by supervisory reviews, index provider criteria, and investor stewardship requirements across listed and private assets.
• Monetization spans portfolio baselining, scenario design, product frameworks, due diligence toolkits, and limited assurance over disclosures.
• Advantage is built through defensible methodologies, model risk controls, and interoperability with core banking and asset management systems.

Competitive Analysis

The ESG & sustainability advisory market is populated by global professional services and strategy consultancies that combine broad-scale advisory capability with sector reach. These firms often compete on breadth of services, global footprint and the ability to connect sustainability to finance and operations, which positions them for large enterprise transformation mandates.

Specialist consultancies and engineering firms provide deep technical delivery and implementation capability; prominent names here include ERM, WSP, AECOM, Jacobs, Ramboll, SLR Consulting, Anthesis, Sphera, ICF, and Tetra Tech, which are selected for technical rigor in environmental assessments, remediation, and operational decarbonisation.

These firms often partner with the large consultancies to supply technical execution and local delivery capacity where needed, creating complementary ecosystems.

Data, ratings and verification vendors such as Sustainalytics, MSCI ESG Research, S&P Global, and emerging ESG data platforms play a critical role by supplying the metrics and verification backbone that underpin advisory work, and they increasingly participate in advisory ecosystems through partnerships and product integrations. Technology and software providers are also strategic competitors or partners, as they enable scaled data management and reporting workflows for clients.

Boutique and regional advisors, specialist climate boutiques and sustainability-focused agencies fill gaps in sector expertise and local context; examples include smaller but influential players that specialise in biodiversity, nature-related financial disclosures, social impact, or transition finance structuring.

The competitive dynamic is thus a mixture of full-service global firms, technical engineering houses, data & software providers, and niche boutiques and market consolidation continues as larger firms acquire specialists to accelerate capability build.

Key Players in the Market

• Antea Group
• Arcadis NV
• Boston Consulting Group
• Environmental Resources Management (ERM)
• Ernst & Young
• Inogen Alliance
• Jacobs
• McKinsey & Group
• Mott MacDonald
• Ramboll Group A/S
• RSK Group; Stantec & Cardno
• Tetra Tech Inc.
• Woodard & Curran
• WSP Global Inc.

Recent Developments

• In April 2024, global consulting firms are strengthening their sustainability capabilities through acquisitions, EY’s acquisition of Denkstatt in 2024 broadened EY’s technical sustainability bench and therefore increased capacity to deliver integrated sustainability services in Central Europe and beyond.
• In September 2024, climate-focused strategic partnerships between banks and asset managers (for example BBVA and KKR) directed new investment into climate strategies and therefore increased demand for advisory work that structures and verifies climate-focused transactions.

Segmentation of ESG & Sustainability Advisory Market

• By Service :

  • Contaminated Land
  • Climate Change & Energy
  • Environmental Impact Assessment & Sustainable Development
  • Environment Management & Due Diligence
  • Water & Waste Management
  • Others

• By End-use Industry :

  • Health & Life Science
  • Defense & Security
  • Public Services
  • Energy & Utilities
  • BFSI
  • Consumer & Manufacturing
  • Transportation
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa