The demand for sustainability consulting services in India is witnessing a significant surge as more companies recognize the need to adopt environmentally responsible practices. Experts predict that this trend will continue to grow in the coming years, driven by a combination of regulatory pressures, investor demands, and increased consumer awareness. 

Increasing Demand for Sustainability Consulting

As environmental, social, and governance (ESG) issues gain prominence in corporate agendas, sustainability consulting has evolved from being a mere aspect of corporate social responsibility (CSR) to a strategic business imperative. Companies in various sectors, including energy, finance, healthcare, manufacturing, and pharma, are actively seeking sustainability-related consultancy services to guide their operations towards a greener future.

Double-digit Growth Potential

According to Mollshree Garg, India managing partner at Environment Resources Management (ERM), a leading sustainability consultancy, the sustainability consulting market in India was valued at $255 million in 2023. Experts anticipate a compound annual growth rate (CAGR) of 7.5% from 2021 to 2030. However, Garg believes that the market could experience even faster growth, given the substantial increase in companies' budgets dedicated to sustainability matters over the past five years.

Driving Factors

The shift towards sustainability consulting is propelled by a growing awareness of environmental and social challenges, coupled with regulatory frameworks and investor and consumer expectations. Companies like JSW Steel, Hindalco, and the Adani Group are making significant investments in environmentally friendly initiatives, such as green steel plants, renewable energy generation, and sustainable supply chain management. This paradigm shift reflects a broader commitment to sustainability and a recognition of the potential for long-term business success through green practices.

Challenges and Opportunities

While Indian companies are increasingly embracing sustainable practices, the country still lags behind global trends in terms of consumer demand for eco-friendly products. This discrepancy is attributed to the lack of compulsory standards or incentives from authorities that would encourage consumers to choose lower-carbon alternatives. However, with proper government intervention and the development of green product markets, India has immense potential for growth in this sector.

Role of Sustainability Consultants

Consulting firms like ERM play a vital role in shaping India's sustainability landscape. They provide guidance to central and state regulatory authorities on policy matters and assist in implementing environmental regulations. ERM India has actively contributed to the country's environmental regulatory framework, including drafting key guidelines such as the Environmental Clearance Notification and Environmental Impact Assessment guidelines.

With the right support and incentives, Indian companies have the potential to lead the way in sustainable business practices, contributing to a greener future for the nation and the planet.