Deloitte UK remains in growth mode. And a substantial portion of that growth involves demand for sustainability consulting and professional services. Still, the business faces some market headwinds, according to Deloitte UK Senior Partner and CEO Richard Houston (pictured, top of page).
Deloitte UK's overall revenue for for fiscal year 2023 (ended May 31) was £5.6 billion (US$6.8 billion) -- up 14% from the previous fiscal year. But take a closer look, and revenue growth was closer to 9% in the second half of fiscal 2023, the company conceded.
Among the market challenges to note: Growth in Deloitte UK's advisory businesses slowed in the second half of the fiscal year, amid an increased caution among clients on spending and a slow-down in the M&A market, the company said.
Deloitte and Sustainable Supply Chain Consulting: Reality Check
Similarly, sustainable supply chain strategies also grew in focus as customers sought to address risks, resilience and ESG within their wider networks, Deloitte UK said. Those business areas had a strong start to fiscal 2023, but experienced softening client demand in the second half of the year, the company said.
Despite the market headwinds, Deloitte UK believes demand for sustainability and climate-oriented services will remain strategically important in fiscal 2024. "Looking ahead, we have a strong pipeline, with continued demand for digital transformation alongside advice on tax, sustainability, climate and AI adoption," Houston said in a prepared statement.
Deloitte Sustainability Partnerships: AT&T, Google Cloud, Workiva
Meanwhile, the global Deloitte business has rapidly expanded its sustainability solutions, green IT consulting services and associated partnerships with multiple companies. Examples include:
Market Forecast: Sustainability Business Services
Consulting firms worldwide -- including Deloitte rivals such as Accenture, EY, KPMG and PwC -- continue to expand their sustainability business practices and associated software development.
Among the reasons: Global spending on sustainability business services will reach $65 billion in 2027, up from $37.7 billion in 2023, according to an IDC market forecast. That's a 14.9% CAGR (compound annual growth rate) during the forecast period, IDC said.
