The future of sustainability consulting and ESG in the UK: A booming market with big challenges
- Ben Horn
- Feb 21
- 2 min read
Updated: Mar 4
The sustainability consulting and ESG landscape in the UK is evolving faster than ever; driven by regulatory shifts, investor pressure, and corporate responsibility. The numbers speak for themselves:
📈 6.4% projected growth in the UK consulting sector in the next year, with an 8.7% increase by 2026. According to the Management Consultancies Association (MCA)
🌱 Global sustainability consulting market set to hit $17B by 2025, growing at a staggering 26.38% CAGR. This growth is indicative of the escalating demand for expertise in sustainable practices.
🔑 Key trends shaping the sustainability agenda in 2025 include:
1. A heightened focus on decarbonisation 🌬️
2. The integration of ESG factors into corporate strategies 📋
3. The adoption of circular economy principles. ♻️
Businesses are increasingly recognising the direct implications of climate change for their operations and supply chains, prompting innovation and value creation through sustainable practices.
⚖️ New UK Sustainability Reporting Standards coming 2025
The UK is actively enhancing its ESG regulatory framework, whilst the Financial Reporting Council (FRC) has introduced a revised UK Corporate Governance Code, applicable to all companies listed for financial years beginning on or after January 1, 2025. This means:
⚡ Effective risk management and internal controls in sustainability reporting.
🤯 Presents some serious headaches for businesses. The new International Sustainability Standards Board (ISSB) S1 & S2 standards mean higher compliance costs, stricter reporting, and a need for precise, auditable ESG data.
Companies will have to decide:
✅ Embrace sustainability as a strategic advantage and innovate in carbon accounting & ESG integration.
❌ Treat it as a compliance burden and risk falling behind in an increasingly sustainability-focused market.
💭 A final thought: Accountants push to end fees cap on ESG work for audit clients. 💰
🧢 The cap prohibits accounting firms from charging fees higher than 70 per cent of their audit fee for other work, such as consultancy or tax advice, for clients whose financial accounts they audit.
📏 Introduced in 2016 as part of EU-wide measures to boost auditors’ independence following concerns that the profession had become too cosy with corporate clients.
📈 With sustainability and ESG becoming a lucrative and growing line of work both for accounting firms and for other consultants, this fee cap is slowing the ability for firms to take advantage of this booming market.
I’d love to hear your thoughts:
1️⃣ How is your business preparing for these changes? Are we ready to move beyond compliance and build a real, lasting impact?
2️⃣ If you are an accountant, how are you gearing up for this rapid growth?
Let’s discuss in the comments! 👇
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