Global Spending on Sustainability Business Services: Worldwide IDC Market Forecast
August 28, 2023 by Joe Panettieri
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.
Sustainability business services, according to the market researcher, include but are not limited to:
ESG strategy development and implementation;
sustainable operations consulting;
ESG reporting services;
green IT implementation services; and
managed sustainability performance services.
The largest spending areas involve strategy development and implementation; human capital management; and ESG reporting, IDC said. A report summary did not disclose green IT spending estimates.
In a prepared statement about the report, Dan Versace, an IDC research analyst focused on ESG Business Services, said: "With the needs for guidance and tools for sustainable operations growing, the market for purpose-built ESG and sustainability services is rife with opportunity for large and small vendors alike. Pressure for change is more prescient than ever, and businesses that fail to act face risk to their brand image, financial performance, and even their infrastructure due to the ever-present threat of extreme weather events and resource shortages caused by climate change. With less than six years until the effects of climate change become irreversible, action is needed now to address current risks and mitigate the threat for the years to come."
Sustainability vs. ESG: Draw A Clearer Line Between the Two
Sustainable Tech Partner values the research. But we wish research firms would draw a clear line between sustainability and broader ESG services. We believe renewable energy, green IT and carbon reduction professional services deserve comprehensive focus, without always being lumped in with broader ESG debates and forecasts.