The new Trellis/Weinreb Group report The State of the Sustainability Profession 2024 has some very good insights about what is happening with corporate sustainability programs, leadership and staffing. Here are a few tidbits from the report:
- At least as of the date of the survey, “Headcount continues to increase within sustainability teams at large corporations, as 74 percent of respondents reported increased staffing over the past two years…” Looking forward near term, that trend could reverse to some extent – depending on EU action on the Omnibus and Taxonomy, member state transposition of CSRD/CS3D, and continued anti-ESG developments in the US.
- Of all the departments to which companies added dedicated sustainability staff (full- or part-time), Legal Departments saw the biggest increase in the past four years. The bars represent data for (from left to right) 2014, 2016, 2018, 2020 and 2024.
Source: The State of the Sustainability Profession 2024, Trellis/Weinreb Group
- Perhaps as expected, adding internal resources displaces external advisors:
“In 2022, 35 percent of respondents had hired more consultants because of increased investor pressure related to ESG disclosures. Another 50 percent had added one or more staff. Two years later, the need for consultants setting strategy for ESG disclosure has decreased as more full-time employees are being brought in to gather data in an auditable way and implement the systems required for reporting ESG data. Only 14 percent of respondents hired consultants, whereas 67 percent added one or more full-time staff.”
That doesn’t mean consultants are suffering much, however. One consultant from a major international advisory firm told me they they declined more than $2million in engagement requests in recent months because the firm didn’t have the ability to take on additional work for 2024-2025.
- Another interesting trend is where the sustainability formally reports in organizations. Departments showing the biggest changes between 2014 and 2024 are EHS and Legal.
Source: The State of the Sustainability Profession 2024, Trellis/Weinreb Group
The report states “the increase in pending regulations has caused several companies to shift their reporting structures to the general counsel’s office.” Sustainability reporting has no doubt shifted toward mandates that mirror financial disclosures, investor demands and increased visibility/media scrutiny. These issues are best managed – and more familiar to – specialized legal staff than technically-oriented EHS departments. My own experience supports this – I run into fewer and fewer sustainability professionals that come from EHS functions.
Next week, I’ll look at other changes the report indicates are facing corporate sustainability departments.
Members can read more about ESG/sustainability staffing trends here.
If you aren’t already subscribed to our complimentary ESG blog, sign up here for daily updates delivered right to you.
