Parts of the ESG / Sustainability consulting industry is experiencing an identity crisis. After a volatile twelve months across EMEA and North America, those working in the sector have had to face a weird fight for validity which, when set against the growing scientific evidence of the planet warming at an even greater rate than before, must be at best frustrating, and at worst, heartbreaking.

How can we on the one hand face an existential crisis as a species, whilst at the same time have to fight the unseen forces of legitimacy in a challenging economic and political environment? 

Feedback from those working in the market varies, but the things everyone seems to agree on are:

• Constant pressure to keep abreast of complex regulation and legislation, often with senior, highly experienced people spending too much time on disclosures relative to their strategic value to the businesses
• Under-resourced teams; hiring freezes and in some cases redundancies have reduced individual’s ability to grow their roles and think about innovation
• Impact is front and centre of people’s minds from their first step on the sustainability journey to their most senior role – when people feel their ability to see impact is compromised, disillusionment can set in
• Whilst people in the main feel energized by the variety of task and client-type within ESG Consulting, those able to see their work implemented following the delivery of projects are happier than those who don’t – the conveyor-belt of projects that form just part of an overall sustainability strategy for a client don’t always scratch the itch of impact.

Historically, the big four and their immediate competitors have been regarded by candidates as dream destinations; working for Accenture, Deloitte etc. is a bit like getting signed for Real Madrid from a career perspective. Perhaps it’s indicative of the scale of those organisations and that ESG is such a relatively small profit centre that is changing that – I’ve met a number of sustainability specialists at all levels recently and I’ve been surprised by how attractive smaller, boutique and more specialist organisations are. This represents an ideal opportunity for those specialist SMEs to grow and hire people who historically might have been hard to attract.

Naturally people only talk to a headhunter when they are disenfranchised on some level, but the numbers and the consistency of the feedback suggests that it’s something leaders should take note of – whilst now it’s not so much a war on talent as a fight for survival, things can, and will quickly turn.

The second thing people ask for more than anything is a route ‘inhouse’, consultants often prefer working with a range of clients and assignments to either a corporate or private markets / asset management role, but that is definitely changing.

When asset owners, financial services businesses and corporates start to hire sustainability professionals en masse again, it could have a negative impact on the consulting sector’s ability to retain and attract talent.

Overall, it’s turbulent out there, but clear signs are showing that change is coming. Let’s hope it’s the change we all want as the commercial direction of travel needs to match to pace and severity of climate change.