Beruflich Dokumente
Kultur Dokumente
March 2012
Key Questions
What is a typical sustainability consultants educational and professional 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? Lead Analyst David Schatsky
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 research analysts 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
For more information on Green Research's services, including syndicated research and custom research tailored to the specific needs of your business, visit greenresearch.com, e-mail info@greenresearch.com or call +1 646-783-8337.
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 sustainability consulting 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
Under 25% 18% 100% of my time 26% 25% to under 50% 20% 75% to under 100% 18%
What percentage of your working time do you spend on sustainability and/or CSR consulting? Source: Green Research Sustainability Consultant Survey (3/12), n = 1063 (global)
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 Copyright 2012 Green Research. All Rights Reserved. 2
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
No college or graduate school Formal sciences 3% 2% Humanities 7% Behavioral and social sciences 11% Professions and applied sciences 58% Natural and physical sciences 19%
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).
Environmental Management consulting Engineering Organizational development Marketing/Communications Change management Architecture/Design Student Accounting Quality management Other 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)
Percentage of Respondents
Sustainability consultants have diverse professional backgrounds. The most common backgroundin environmental work of some sortis 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
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
210 37%
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.
Strategy development and planning Defining metrics and/or benchmarking Project planning and management Reporting (and data collection) Training Facilities/building Employee engagement External stakeholder engagement Marketing/communication Assurance/Auditing Supply chain Product design and development Implementing management systems Public policy Procurement Transportation and logistics Packaging None of the above
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)
56% 45% 43% 42% 37% 36% 33% 30% 28% 27% 26% 22% 19% 18% 18% 12% 9% 3% 0% 20% 40% 60% 80% 100% Percentage of Respondents
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.
Energy efficiency/energy management Greenhouse gas and/or other air emissions Recycling/reuse/waste management Carbon accounting/footprinting Water Community involvement, development Life cycle assessment Green certifications Renewable energy project development Biodiversity Ecosystem services Labor practices/fair operating practices Which the following environmental Hazardous materials or social responsibility areas areas were the focus of client projects on Human rights which you worked in 2011? Select all that apply. Green chemistry, toxicity footprinting
Source: Green Research Sustainability Consultant Survey (3/12), n = 611 (global)
62% 55% 50% 47% 42% 38% 32% 32% 32% 21% 17% 16% 15% 11% 9% 0% 50% 100% Percentage of Respondents
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.
Manufacturing Public Sector/Government Educational Services Construction Not for profit Utilities Professional, Scientific, Technical Services Waste Management/Remediation Services Finance and Insurance Agriculture, Forestry, Fishing and Hunting Accommodation/Food Services Mining, Quarrying, Oil and Gas Extraction Retail Real Estate and Rental and Leasing Transportation and Warehousing Health Care and Social Assistance For clients in which industries did you Information & Media work on one or more projects in the Arts, Entertainment, and Recreation last year? Select all that apply. Wholesale Trade
Source: Green Research Sustainability Consultant Survey (3/12), n = 594 (global), all manufacturing responses aggregated.
45% 39% 33% 33% 27% 23% 22% 21% 21% 21% 21% 18% 16% 16% 13% 13% 10% 8% 4% 0% 50% 100% Percentage of Respondents
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 industrys environmental footprint is only one. If an industrys 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, environmentallyand socially- interested constituency combined with a long-term perspective that favors sustainability oriented investments.
Scale and Reputational Factors Position Consumer Goods as Most Active Manufacturing Segment
Figure 9 Manufacturing Segments Consultants Served in the Last Year
Other
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.
Management Analyst $160,000 Annual Income/Salary $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0
$97,500 $70,000 $37,750 $13,800 10% 25% 50% Percentile 75% 90%
Source: Green Research Sustainability Consultant Survey (3/12), n = 51 (US only), full-time consultants, Bureau of Labor Statistics, (5/10)
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.
"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.
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
100% Very strong Somewhat strong Neither weak nor strong Somewhat weak Very weak Percentage of Respondents 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
10%
18%
39% 44%
What is your perception of business conditions at this time for your business today and six months from now? Source: Green Research Sustainability Consultant Survey (3/12), n = 551 (global)
11
Figure 13 Regional Perception of Strong Business Conditions Today and in Six Months
100% Percentage of Respondents Choosing Somewhat Strong or Very Strong 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Euro Zone US World Asia Pacific 45% 68% 59% 46% 61% 49% 62% 53% Today Six Months from Now
What is your perception of business conditions at this time for your business today and six months from now?
Source: Green Research Sustainability Consultant Survey (3/12), n = 551 (global), n = 58 (Euro Zone), n = 217 (US), n = 41 (Asia Pac)
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
Prospects don't have budget Clients need a lot of education Long sales cycle Demand for services but not at my price Unsupportive regulatory environment Obtaining qualified leads Staying current with my field Too much competition
Which of the following are your greatest business challenges? Please select up to 3 business challenges. Source: Green Research Sustainability Consultant Survey (3/12), n = 548 (global)
54% 49% 46% 28% 28% 28% 21% 11% 10% 0% 50% Percentage of Resondents 100%
Other
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 Copyright 2012 Green Research. All Rights Reserved. 12
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.
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
13
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
Asia 14%
Europe 25%
Source: Green Research Sustainability Consultant Survey (3/12), n = 764 (global)
The survey drew responses from six continents and 69 countries. No attempt has been made to weight the responses based on geographical factors.
14
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)
15