Environmental, social, and governance (ESG) business services growth will grow from $37.7 billion worldwide this year, to nearly $65.0 billion in 2027, at a compound annual growth rate (CAGR) of 14.9%, according to a study from IDC.
► Pressure for change is greater than ever
► Companies need guidance on strategy and approach
The drive to be more sustainable has created opportunities for business services firms to provide related services around strategy, operations, business models, human capital and other elements that contribute to an overall approach. IDC notes that few companies will have attempted anything similar in the past.
‘With the needs for guidance and tools for sustainable operations growing, the market for purpose-built ESG and sustainability services is rife with opportunity for large and small vendors alike,’ said Dan Versace, research analyst, ESG Business Services.
‘Pressure for change is more prescient than ever, and businesses that fail to act face risk to their brand image, financial performance, and even their infrastructure due to the ever-present threat of extreme weather events and resource shortages caused by climate change. With less than six years until the effects of climate change become irreversible, action is needed now to address current risks and mitigate the threat for the years to come.’
A 2022 IDC survey found that nearly two thirds of respondents planned to allocate more than half of their professional services spending to sustainability services over the next two years.
