GREEN CONSULTING: PATHWAY TO A SUSTAINABLE FUTURE
For decades the business world has reaped the rewards of growing demands,
improving technology, and globalization. However, with such growing and diverse
needs, and frequently changing consumption patterns come the problem of
environmental challenges. The carbon emissions are at an all-time high, and resources
are depleting at a rate like never before. All of this is not going unnoticed by the world.
In recent years, businesses have made significant efforts to contribute towards
environmental sustainability by minimizing their carbon footprints and implementing
eco-friendly practices. What is the main reason for these positive changes?
Development of a new branch of consulting – “Green Consulting”.
What is Green Consulting?
Green Consulting is a branch of consulting that helps businesses become
environmentally friendly by advising them to use more sustainable practices while
increasing their operational efficiency and effectiveness. Consultants in this field create
strategies to reduce waste and further improve waste management, integrate the
environment into business plans, and comply with regulatory standards
Importance of Green Consulting
- Tackling Climate Change – Increased business operations have led to greater
carbon and greenhouse gas emissions, depleting resources, and increased pollution.
Green Consulting allows businesses to overcome such issues by suggesting other fuel
alternatives and substitutes. - Increased Efficiency – Green Consulting helps businesses take note of their
overlapping activities, prolonged fuel uses, and waste resources. This will help them
rectify these problems through waste reduction, energy efficiency, and reduction of
business costs. - Company’s Image – The world has become increasingly cautious in choosing
brands and products that are environmentally friendly and create a sustainable future.
Thus, adopting certain green measures will improve the company’s image in the
consumer’s minds and help gain their trust which will ultimately lead to long-term
growth.
Challenges to Green Consulting
- Uncertainty in Environment Changes – The idea of green consulting is still
relatively new and the expectations from it are quite high. The environment goes
through a lot of changes over a period and anticipating them to formulate future policies
is not feasible. - Resistance – Adopting newer measures means the company must let go of tried
and tested methods and is often viewed as a potential risk. Thus, companies might be
resistant to adopting some of these measures.
Impact of SDG and Other Regulatory Sanctions
Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015 to
help create a better Earth by ending poverty and hunger, protecting the planet, etc.
There are 17 SDGs out of which SDGs 6,8,12,14 and 15 are related to improving the
environment. All the member nations have committed to achieving these goals by 2030.
This has led a lot of developed and developing nations to formulate their own policies to
achieve said goals. These policies have forced companies to consult and adopt much
greener production methods.
For example, the Adani Group has invested significantly in renewable energy,
especially solar power, to underline its commitment to sustainable growth. In contrast,
ITC has become carbon positive in the last few years and meets 40% of its energy
requirements through renewable sources.
At a global scale, Microsoft, the third most valuable company, is on track to become
carbon-negative by 2030 and remove all its carbon emission by 2050.
Current Market Overview
● The global sustainable consulting market is worth around USD 13.44 billion in
2024 and is expected to reach USD 42 billion by 2029 with a CAGR of 26.38%.
With the Indian market worth around USD 255 million at the end of 2023, it is
expected to grow at a rate of 7.5% till 2030.
● The major users of Green Consulting include (sector-wise) –
❖ Energy and Power – 35%
❖ Construction and Real Estate- 25%
❖ Public Sector- 20%
❖ Industrial and Manufacturing- 10%
❖ Other sectors like Healthcare, IT- 10%
North America is one of the largest markets for Sustainable consultancy, followed
by Europe. However, Asia-Pacific is expected to be the fastest-growing market in
the upcoming years.
● Major firms providing Green Consulting around the globe include Accenture, Tata
Consultancy Services, Boston Consulting Group, and others.
Future of Green Consulting
- AI Integration – The rapid growth of AI all around the world and its integration with
the consulting business would lead to the development of better methods for cost
reductions, and achieving sustainability. - Diversification – Over time the scope and field of green consulting will grow and will
be able to access almost all sectors of businesses.
Conclusion
Green consulting has become a necessity for all businesses worldwide to survive and
thrive. Businesses worldwide have become increasingly efficient and are now driven by
the idea of a greener future. Achieving Sustainability has become the major objective,
and green consulting is the pathway to it.
About the Author
Jai Anmol Malhotra
Jai Anmol Malhotra, have a keen interest in major management and financial sector developments and providing valuable insights on them.