By the end of 2026, the CSRD will impact a total of 49,000 firms in the EU alone. Coming amidst a wave of disclosure regulations worldwide, this will propel investment in net zero software and services. Calculations from research and advisory firm Verdantix reveal that the global market spend on net zero consulting services reached $3.5 billion in 2022 and will grow rapidly to exceed $15 billion by 2028.
Alongside new climate-related disclosures, other drivers of this growth are:
- Stakeholder pressure. As firms develop realistic and data-driven net zero targets to demonstrate their decarbonization commitments to investors and customers, business leaders will need to increase spending on net zero and climate change strategy support. Once science-based targets are set, organizations will face increased pressure to decarbonize their operations and meet their goals. With these decarbonization targets approaching rapidly, firms will need guidance on how to implement their strategies.
- Industry-specific challenges. Tackling emissions is not a one-size-fits-all process and, as such, organizations like the International Sustainability Standards Board (ISSB) are starting to incorporate industry-specific requirements. Net zero consulting service providers are well placed to support corporates and financial institutions with these challenges, coming from a variety of backgrounds, such as accounting, management consulting and sustainability specialists. Beyond reporting requirements, industry-specific expertise involves supply chain decarbonization support for Scope 3-heavy industries (such as wholesale and retail trade) and financed emissions calculation and reduction for financial institutions.
