Are we seeing green shoots?  

There is no question that hiring has been suppressed across much of the market over the last 3 months, however, it’s probably more accurate to talk in terms of ‘people movement’ being low, rather than demand itself. 

Companies which undertook re-structures on the back of acquisitions and mergers in the last 18 months have, understandably focused more on consolidation, so staff turnover typically spiked immediately post restructure, then has stabilized and stagnated, limiting external hiring to only essential roles. 

It may be, also that some companies, particularly those with large, generalist ESG consulting teams have opted not to replace leavers. The net effect is that modest growth, low staff-turnover and some economic cautiousness has resulted in a lower number of external vacancies, particularly within ESG deal advisory, due diligence and carbon-accounting roles.  

However, companies working in more technical and specialist areas have seen growth; legislation has been a useful catalyst, particularly around Biodiversity Net Gain, CSDDD and TCFD.  

Will we see an ‘War on Talent’ for Biodiversity Consulting? 

In a word, no – currently there are an appropriate number of opportunities versus people and graduates coming into the market. However, we will likely see pockets of demand outstripping supply particularly in the ‘sweet spot’ of 4-8 years’ experience, where consultants have adequate experience to manage clients in addition to delivering projects. There may well be challenges within the deeper specialisms across the ecology spectrum, particularly marine and where candidates possess the experience of consulting in areas most effected by legislation. The market is also increasingly global; practices outside of major conurbations may find they lose key staff due to gradual, but probably overdue corrections in pay and reward coupled with remote working provision. 

Where is demand likely to be? 

It’s early days, and so much of growth with consulting depends on either confidence in growth, or gaps in the market. Scope 3 and CSDDD may well have a big impact on supply chains to major corporates, particularly SME business. They may well draw on consulting expertise to meet their obligations rather than adding to their sustainability headcounts. 

A gradually rousing beast is Nature-based Solutions alongside Carbon / Biodiversity markets. 

I don’t think it’s entirely clear how big this beast is; it may well remain small and specialist rather than growing exponentially, but if confidence increases in NBS and carbon markets then it could well be a growth area, as companies try to figure out what it looks like and how to balance commerciality with sustainability. 

Nature-based solutions is a fascinating area and requires a rare skillset spanning both nature and biodiversity with commercial acumen and financial literacy. Those possession both areas in their skills profile will be in high demand which may well outstrip supply.  

Where are the risks? 

I don’t think that there is a wide, existential risk to sustainability consulting. Yes, it is clear that consulting firms need to be able to realise the double bottom-line of impact and profit for clients; if the focus is purely obligations and disclosures, firms will work to automate as much as possible, and may bring reporting in-house.  

Specialist consulting firms outside of the main conurbations working in areas like ecology, climate, nature restoration and biodiversity could find themselves priced out of the market should the larger firms develop business streams in these areas. Similarly, conservation trusts and not-for-profit could also find themselves losing staff to the private sector as competition for talent increases.  

However, a major risk, particularly to Big 4 and other more generalist practices is brain-drain and competition with overseas firms. The most common conversation I have with candidates is around role purpose, impact and variety of work. Keeping consultants engaged, happy and motivated will be a big deciding factor in staff retention; already this year I have seen people leaving consulting to work for private equity, development finance, financial services and in-house within corporates. This is not a question of pay and reward; more an issue of job satisfaction, impact and purpose.