Global Sustainability Consultant Survey 2012 Green Research

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Global Sustainability Consultant

Survey, 2012Most organizations are not self sufficient when it comes to sustainability

expertise. This has created a dynamic, global market for sustainability

and CSR consulting services. There are a handful of well-known large

consulting firms with global footprints such as Accenture, KPMG,

McKinsey and PwC. But there are thousands of lesser-known, smaller

consultancies and sole practitioners that will help drive sustainability

among large and mid-size companies over the coming years.

Key Questions

What is a typical sustainability consultant’s educational andprofessional background?

Which industries and business and technical areas are most

active for sustainability consultants?

What do sustainability consultants earn?

What is the business outlook for sustainability consulting?

Key Findings

Sustainability consultants are upbeat about their business prospects.

Forty-nine percent say business conditions are somewhat or very strong

today and 62 percent expect a strong business environment six months

from now.

This optimism has drawn many newcomers to the field: 40 percent of

consultants have been at it for less than three years. The rising number

of consultants may be putting downward pressure on fees. In the US,

consultants’ median annual income in 2011 was $70,000; except at the

high end of the range, sustainability consultants’ incomes are generally

near or below the incomes of management and operations researchanalysts nationally.

To remain relevant in a competitive and evolving market, consultants

will need to couple skills in strategy and planning, where 56 percent of

consultants did project work last year, with industry and functional

Research Topics

Sustainability Consulting

March 2012

Lead Analyst David Schatsky

Sustainability Services

Global Sustainability Consultant Survey, 2012

For more information on Green Research'

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your business, visit greenresearch.com, e-

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expertise. Green Research expects supply chain sustainability and employee engagement to be

especially active areas for companies in 2012.

Introduction

This study is intended to support the market for sustainability consulting and help drive progress in

sustainability globally. By highlighting supply and demand dynamics in the market for sustainabilityconsulting we hope to help consultants and the companies that hire them to make informed decisions

that will bring positive, sustainable business benefits.

Discussions of sustainability sometimes get sidetracked by definitional questions: What is meant by

“sustainability”? Does corporate social responsibility (CSR) include sustainability, or vice versa, or are

they separate areas? We see little value in attempting to address those questions in this research.

Rather, we allowed survey respondents to self-select based on the terms “sustainability” and “corporate

social responsibility” and will let the survey results speak for themselves. For simplicity, we use the term

“sustainability” throughout the rest of this report to refer to what these consultants do.

The survey was fielded online to a global audience in February and March 2012. It drew over 1500

responses and some 520 screened and completed questionnaires. For a detailed description of the

survey methodology, please see the Methodology section.

We would like to hear your reactions to this study and invite you to participate in a conversation about it

on our blog at http://grnrs.ch/xRuRly.

Few Are Consulting Full Time

Figure 1 Percentage of Working Time Spent on Consulting

Of the 1548 survey respondents, some 1063 indicated they are involved in consulting on sustainability

(57 percent of the total), CSR (three percent), or both (40 percent). A majority of the respondents who

Under 25%

18%

25% to under 50%

20%

50% to under 75%18%

75% to under

100%

18%

100% of my time

26%

What percentage of your working time do you spend on sustainabilityand/or CSR consulting?

Source: Green Research Sustainability Consultant Survey (3/12), n =

1063 (global)

http://grnrs.ch/xRuRly







identified themselves as consultants work only part time in that capacity. Indeed, just one quarter of

them spend 100 percent of their working time consulting. Respondents were screened so that only

those who spent at least 25 percent of their time consulting were asked to complete the survey. The

analysis below focuses on those consultants who reported spending at least 25 percent of their time on

consulting.

Background of Consultants

Most Consultants Received Education in the Professions or Applied Sciences

Figure 2 Consultants’ Educational Background

Most consultants have educational backgrounds in the professions and applied sciences (e.g.

agriculture, business, education, engineering, law, public administration). The second most common

educational background is the natural and physical sciences (e.g. earth sciences, biology, chemistry,

physics). As the field of sustainability matures, a broadening set of skills are being applied to address its

challenges. A growing focus on engaging and motivating consumers to adopt more sustainable

behaviors, for instance, has created some demand for researchers with knowledge of anthropology,

psychology and sociology. These behavioral and social sciences represent the third-most common

background for sustainability consultants. In the survey, each choice was defined by example as above.

The other fields were defined as follows: formal sciences (e.g. computer sciences, mathematics,

statistics) and humanities (e.g. history, languages, arts, philosophy, religion).

No college or

graduate school

2%

Formal sciences

3%

Humanities

7%

Behavioral and

social sciences11%

Natural and

physical

sciences

19%

Professions and

applied sciences

58%

Source: Green Research Sustainability Consultant Survey (3/12),

n = 762 (global)




Diverse Work Experience Weighted toward a Background in Environmental Issues

Figure 3 Consultants' Prior Work Experience

Sustainability consultants have diverse professional backgrounds. The most common background—in

environmental work of some sort—is shared by just 31 percent of respondents. Management

consulting and engineering are also relatively common. Beyond those fields, a wide variety of

professional backgrounds are found, none shared by more than a small percentage of respondents.

These include, besides those listed on the chart above, legal, government, auditing, journalism, city

planning, real estate and construction.

An Influx of Newcomers Join the Seasoned Sustainability Consultants

Figure 4 Years of Consulting Experience

24%

2%

2%

3%

3%

4%

4%

5%

11%

13%

31%

0% 20% 40% 60% 80% 100%

Other

Quality management

Accounting

Student

Architecture/Design

Change management

Marketing/Communications

Organizational development

Engineering

Management consulting

Environmental

Percentage of Respondents

Which of these best represents the area in which

you worked prior to working in sustainability/CSR

consulting?

Source: Green Research Sustainability Consultant

Survey (3/12), n = 762 (global)

Less than a year

10%

1 year to less than 2

years

14%

2 years to less

than 3 years16%

3 years to less

than 5 years

20%

5 to less than 10

years

22%

10 or more years

18%

How long have you personally been delivering consulting

services in the sustainability/corporate social responsibility

field?

Source: Green Research Sustainability Consultant Survey

(3/12), n = 762 (global)




One of the reasons we undertook this study was because we believed that the sustainability consulting

field was growing rapidly as a large number of professionals were entering the field. This is confirmed by

the data, which reveal that 40 percent of the consultants entered the field less than three years ago. A

combination of factors has contributed to the influx of professionals to the field. These include the

dislocations caused by the 2008 financial crisis and ensuing recessions, which prompted some

professionals to become independent consultants, and growing awareness of sustainability challenges

and interest in helping to solve them. Of course, the field has well established firms and highly

experienced consultants as well. Forty percent of sustainability consultants have been working in the

field for at least 5 years.

Many Consultants Work at Small Firms or Alone

Figure 5 Number of Employees at Consultants' Firms

Like other service industries, the sustainability consulting landscape features a large number of small

firms. One consultant we spoke with recently told us that hers was “one of seemingly gajillions of small

firms” doing sustainability strategy for corporations. The data, which indicates that over 60 percent of

respondents work independently or for a firm of 10 or fewer people, validates her assessment. Larger

firms also employ a significant number of professionals who work, at least in a part-time capacity, as

“sustainability consultants.” These include general consulting firms like Accenture, Deloitte, KPMG and

PwC; engineering firms that provide environmental consulting such as ARUP, CH2M Hill and Fluor; and

environmental consultants such as ATC Associates, ERM, Ecology and Environment, Environ and WSP

Environmental. Collectively, those firms employ thousands of professionals. But we believe most do not

identify themselves as sustainability consultants.

Sole Proprietorship

24%

2 –10

37%

11 –20

11%

21 –50

6%

Over 50

22%

If you work at a for-profit company, which best describes the

company's structure? (Sole proprietorship was one choice);

How many employees work at your organization?

Source: Green Research Sustainability Consultant Survey

(3/12), n = 520 (global)




Major Focus of Consulting Activities

Business Focus is on Strategy, Measurement and Project Management

Figure 6 Most Common Business Areas that Projects Focused on in 2011

Business-oriented sustainability consulting tends to focus on strategy development; developing,measuring and reporting metrics; and project planning and management more than other areas. While

some companies have well defined sustainability strategies, many more are still in the processing of

establishing or refining their strategies, or have yet to begin the process of strategy development. The

data reveals the extent to which sustainability strategy support is in high demand among businesses.

A third of respondents worked on employee engagement projects in 2011 and a quarter did supply

chain work. According to a recent Green Research survey,1 88 percent of sustainability executives said

their companies would dedicate significant staff time or financial resources to improving employee

engagement in 2012; 73 percent said the same about supply chain sustainability. The planned focus on

these two business areas suggests additional opportunity in 2012 for consultants in those areas.

1Annual Sustainability Executive Survey, 2012. Green Research (December 2011).

3%

9%

12%

18%

18%

19%22%

26%

27%

28%

30%

33%

36%

37%

42%

43%

45%

56%

0% 20% 40% 60% 80% 100%

None of the above

Packaging

Transportation and logistics

Procurement

Public policy

Implementing management systemsProduct design and development

Supply chain

Assurance/Auditing

Marketing/communication

External stakeholder engagement

Employee engagement

Facilities/building

Training

Reporting (and data collection)

Project planning and management

Defining metrics and/or benchmarking

Strategy development and planning


Which the following business areas were

the focus of client projects on which you

worked in 2011? Select al that apply.

Source: Green Research Sustainability

Consultant Survey (3/12), n = 611 (global)




Technical Projects Focus on Energy, Greenhouse Gases, Waste and Water

Figure 7 Most Common Technical and Social Areas that Projects Focused on in 2011

Among technical projects, the energy, carbon and waste dominated consultants’ dockets in 2011. With

rising awareness of water scarcity as a key sustainability issue, forty-two percent of consultants said

they worked on water issues last year, a number we suspect is significantly higher than just two or three

years ago. In some ways, biodiversity and ecosystem services are still low-profile issues in sustainability;

according to our research, companies tend not to publicize specific, quantitative goals for them.

Attention to these issues is on the rise, however, and this is reflected by solid representation here. Over

20 percent of consultants said they worked on biodiversity projects in 2011, and 17 percent worked on

ecosystem services.

9%

11%15%

16%

17%

21%

32%

32%

32%

38%

42%

47%

50%

55%

62%

0% 50% 100%

Green chemistry, toxicity footprinting

Human rights

Hazardous materials

Labor practices/fair operating practices

Ecosystem services

Biodiversity

Renewable energy project development

Green certifications

Life cycle assessment

Community involvement, development

Water

Carbon accounting/footprinting

Recycling/reuse/waste management

Greenhouse gas and/or other air emissions

Energy efficiency/energy management


Which the following environmental

or social responsibility areas areas

were the focus of client projects on

which you worked in 2011? Select

all that apply.

Source: Green Research

Sustainability Consultant Survey

(3/12), n = 611 (global)




More Consultants Helping Manufacturers than Any Other Sector

Figure 8 Industries That the Consultants Served in the Last Year

The manufacturing sector provided ample opportunities for sustainability consultants in 2011; forty-five

percent of consultants worked at least one project for a manufacturer last year. A variety of factors

influence the demand for sustainability consulting services at the industry level; an industry’s

environmental footprint is only one. If an industry’s environmental footprint were the dominant factor then high-footprint industries such as utilities and oil and gas would top the list. Instead the public

sector, education and not-for-profits rank relatively high. The public sector ranks high because of a

combination of supportive policy, a long-term perspective, and a more flexible financial calculus to

justify sustainability activities. The education sector benefits from serving a younger, environmentally-

and socially- interested constituency combined with a long-term perspective that favors sustainability

oriented investments.

4%

8%

10%

13%13%

16%

16%

18%

21%

21%

21%

21%

22%

23%

27%

33%33%

39%

45%

0% 50% 100%

Wholesale Trade

Arts, Entertainment, and Recreation

Information & Media

Health Care and Social AssistanceTransportation and Warehousing

Real Estate and Rental and Leasing

Retail

Mining, Quarrying, Oil and Gas Extraction

Accommodation/Food Services

Agriculture, Forestry, Fishing and Hunting

Finance and Insurance

Waste Management/Remediation Services

Professional, Scientific, Technical Services

Utilities

Not for profit

ConstructionEducational Services

Public Sector/Government

Manufacturing


For clients in which industries did you

work on one or more projects in the

last year? Select all that apply.


Consultant Survey (3/12), n = 594

(global), all manufacturing responses

aggregated.




Scale and Reputational Factors Position Consumer Goods as Most Active Manufacturing

Segment

Figure 9 Manufacturing Segments Consultants Served in the Last Year

As noted above, 45 percent of consultants worked on a sustainability project in the manufacturing

sector in 2011. Within manufacturing, consumer goods was the most active area for sustainability

consultants. The very large scale of many consumer goods makers, coupled with the reputational

imperatives of investing in sustainability, are important drivers of sustainability activities in this

segment. Chemicals and electronics also saw double-digit levels of consultant activity last year.

Economics

It is a challenge to make broad statements about the economics of the sustainability industry globally.

Diverse macroeconomic conditions, company types and types of services alone make direct comparisons

complex. With the data we gathered we decided to focus our analysis initially consultants’ incomes. Our

survey asked consultants to specify their annual income and the currency in which it was earned. To

establish a solid basis of comparison we selected just those respondents who spend 100 percent of their

time consulting. After removing obviously spurious responses, we had sufficient responses to report on

in two geographic areas: the US and the Euro Zone.

21%

7%

8%

9%

11%

12%

19%

0% 50% 100%

Other

Pharmaceuticals

Apparel

Automotive

Electronics

Chemicals

Consumer goods


For clients in which industries did you work on one

or more projects in the last year? Select all that

apply.


Survey (3/12), n = 594 (global), only manufacturing

responses shown




Consultant Earnings in Line with Management Analysts Nationally

Figure 10 Consultant Annual Income Compared to Management and Operations Research Analysts (US)

Among US-based consultants, the median annual income is $70,000. Three-quarters of consultants earn

$97,500 or less annually but incomes as high as $310,000 were reported. In the US the incomes of

sustainability consultants are comparable to the salaries of management or operations research analysts

as reported by the Bureau of Labor Statistics.2 Among consultants based in the Euro Zone, the median

annual income is € 60,000. Three-quarters of consultants earn € 75,000 or less. The maximum income

reported was € 230,000.

2"Occupational Employment Statistics Home Page." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics.

Web. 07 Mar. 2012. <http://www.bls.gov/oes/>.May 2010 data.

$13,800

$37,750

$70,000

$97,500

$143,500

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

10% 25% 50% 75% 90%

A n n u a l I n c o m e / S a l a r y

Percentile

Management Analyst Operations Research Analyst Sustainability Consultant

What was your income from

sustainability or CSR consulting in

2011?


Consultant Survey (3/12), n = 51 (USonly), full-time consultants,

Bureau of Labor Statistics, (5/10)




Business Outlook

Many Consultants Reporting Stability and Growth Over Prior Year

Figure 11 Change in Demand for Consulting Services vs. Last Year

About half of those who have consulted for at least a year report a strengthening in demand for their

services compared to last year. Forty-three percent say demand is somewhat stronger; 9 percent report

much stronger demand. Just twenty percent report a decline in demand compared to the prior year.

Overall, consultants are upbeat about the business conditions they are facing.

Consultants See Strong Business Conditions Ahead

Figure 12 Perception of Business Conditions Today and in Six Months

Much weaker4%

Somewhat

weaker

16%

Neither stronger

nor weaker

28%

Somewhat stronger

43%

Much

stronger

9%

How has the demand for your company's

sustainability/CSR services changed from this time

last year?


Survey (3/12), n = 508 (global), consultants working

at least a year

5% 4%

18%12%

27%

22%

39%

44%

10%18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Today Six Months from Now

P e r c e

n t a g e o f R e s p o n d e n t s

Very strong

Somewhat strong

Neither weak nor strong

Somewhat weak

Very weak

What is your perception of business conditions at

this time for your business today and six months

from now?






Figure 13 Regional Perception of Strong Business Conditions Today and in Six Months

Sustainability consultants are optimistic about business conditions in the near term. Over 60 percent

globally predict strong conditions six months from now, compared to 49 percent who describe current

business conditions that way. Respondents from Asia-Pacific countries tend to have a more positive

picture of business conditions both today and in the next six months.

Major Challenges

Figure 14 Top Business Challenges for Sustainability Consultants

Despite the upbeat outlook, consultants cite a number of business challenges, chief among them that

prospects lack budget. About half of respondents say corporate sustainability departments pay for their

45% 46%49%

53%59% 61% 62% 68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Euro Zone US World Asia Pacific

P e r c e n t a g e o f R e s p o n d e n t s C h o o s i n g

S o m e w h a t S t r o n g o r V e r y

S t r o n g

Today Six Months from Now

What is your perception of business conditions at

this time for your business today and six months

from now?


Survey (3/12), n = 551 (global), n = 58 (Euro Zone), n

= 217 (US), n = 41 (Asia Pac)

10%

11%

21%

28%

28%

28%

46%

49%

54%

0% 50% 100%

Other

Too much competition

Staying current with my field

Obtaining qualified leads

Unsupportive regulatory environment

Demand for services but not at my price

Long sales cycle

Clients need a lot of education

Prospects don't have budget

Percentage of Resondents

Which of the following are your greatest businesschallenges? Please select up to 3 business

challenges.






services. We know from previous research that consulting is one of the top three line items in

sustainability department budgets. But we also know those budgets are tight. According to a recent

Green Research sustainability executive survey, a quarter of firms were planning to expand the budgets

of their sustainability departments in 2012, while fifty percent of firms planned to increase spending on

sustainability initiatives across their companies. This suggests that consultants should also target

departments outside the sustainability group and should be prepared to help sustainability leaders

make the business case for their services to other departments that may control greater budgetary

resources.

The Future of Sustainability Consulting

As the sustainability field matures, Green Research expects the mix of services companies require from

consultants to evolve. Today, a majority of consultants are working on strategy and planning projects.

We believe this reflects in part the relatively early stage many companies find themselves in their

sustainability journey. Over time, as strategies are set, sustainability consulting is likely to tend toward

more tactical, technical or project-oriented work. Furthermore, as knowledge of sustainability concepts

and practices become more widespread, consultants with special expertise in particular industries andbusiness functions may have an edge over general strategy consultants.

Methodology

The survey was conducted from February 15 through March 2, 2012. Respondents for this survey were

selected from among those who volunteered to participate. Participants were recruited via several

means, including

Email invitations from Green Research

Email invitations from the International Society of Sustainability Professionals

Posting on social media such as LinkedIn and Twitter

A press release carried by various online media outlets globally

Respondents were offered the incentive of receiving a summary of the results if they provided their

email address. Respondents could take the survey in any of four languages: English, Spanish,

Portuguese and French.

The survey drew 1548 responses overall. Respondents were screened to ensure that they spent at least

25 percent of their working time providing consulting services related to sustainability or corporate

social responsibility. Three hundred five responses were screened out on this basis. Overall 520

respondents (or 34 percent) completed questionnaires though some questions received more than 520

responses. We opted to include those responses in the aggregate results.

The data have not been weighted to reflect the demographic composition or geographic distribution of

sustainability consultants. Because the sample is based on those who initially self-selected for

participation in the survey rather than a probability sample, no estimates of sampling error can be




calculated. All sample surveys and polls may be subject to multiple sources of error, including, but not

limited to sampling error, coverage error, and measurement error.

Responses Distributed Globally, Weighted toward North America and Europe

Figure 15 Geographic Distribution of Respondents

The survey drew responses from six continents and 69 countries. No attempt has been made to weight

the responses based on geographical factors.

Further Information about the Survey

The full survey questionnaire included over forty questions. Beside the questions presented in this

report, our data set includes information on:

Consultant utilization rates

Consulting firm revenues

Number of projects completed in 2011

Degree of collaboration with

consultants from other organizations

Pro bono work

Size of client companies

Which client department pays for

consulting services Consulting pricing models

Project costs

Hourly billing rates

Recent and planned changes in staffing

Recruiting of consultants

Software tools in use at consulting firms

Tactics for building professional

reputation

Most valuable conferences and events

Most important websites

Most valuable education and training

providers Most valuable professional

certifications

Africa

3%

South

America

5%Australia/

Oceania

8%

Asia

14%

Europe

25%

North America

45%

Source: Green Research Sustainability Consultant Survey (3/12), n = 764 (global)




Green Research intends to publish other analyses of this data in the future. For further information, a

copy of the complete survey questionnaire, or to discuss a custom analysis, please contact us.

Related Research

Annual Sustainability Executive Survey, 2012 (December 2011)

Corporate Sustainability: Organization Structures, Budgets and Mastering the Art of Influence (March

2011)

About Green Research

Green Research is a research, advisory and consulting firm focusing on clean tech, alternative energy and

corporate sustainability. We provide best practices and benchmarking research to sustainability executives

and market analysis to vendors of clean tech and sustainability products and services. To deliver successful

projects, we draw on our network of industry experts, a proven research methodology and decades of

experience in market research and technology strategy consulting. For more information about Green

Research please visit greenresearch.com, e-mail [email protected] or call +1 646-783-8337.

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