The sustainability services ecosystem includes a diverse range of providers and resources
designed to help organizations, communities, and individuals align profit-making with
environmental and social responsibility (the “3Ps” – people, planet, profit). Since the adoption of
Sustainable Development Goals, many providers have expanded capabilities to support
environmental, social, and governance (ESG) objectives through tracking, reporting, and
sustainable practices.
For SMEs, integrating sustainable practices may appear overwhelming but the effort is highly
beneficial through cost savings, an enhanced reputation, and access to new markets. The
ecosystem has hundreds of players. Don’t fret; you only need to interact with a handful of these.
Key Players in the Ecosystem by Function
- Measurement and Disclosure: These services focus on transparency and accountability through frameworks (like SDGs, CDP), standards (GRI, IFRS, ISO), software (Greenly, Workiva), and carbon offsetting initiatives (Verra, Gold Standard).
- External Stakeholder Relations: This function aligns organizations with societal expectations, building trust and enabling competitive advantage. Key players include rankers (Ecovadis, S&P Global), raters, and event organizers (GreenBiz, UN Climate Change).
- Capacity Building and Learning & Development: Essential for embedding sustainability into organizational culture, these services include news resources (CarbonBrief), engagement tools (Giki), and L&D programs (One UN Climate Change Learning).
- Sustainability Consulting: Consulting firms (e.g., SFAI Sustainability Solutions (SSS)) offer expertise in advisory, reporting and assurance to help organizations develop and implement sustainability strategies
- Sustainability Innovators: Innovators drive environmental solutions through technologies like smart grids, carbon capture, and sustainable packaging.
- Sustainability Investors: Investors, including impact investors and green funds, prioritize ESG factors to drive financial returns alongside social impact.
- Policymakers and Regulators: Government entities create policies and incentives for sustainable practices, set standards, and enforce accountability. Locally, a number of guidelines have been issued on ESG reporting like the Guidance on Climate-Related Risk Management (Guidance) to the banking sector by Central Bank of Kenya (CBK).
While most guidelines are voluntary, there is an emerging trend of governments legislating ESG
disclosures, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) for listed
companies. Such requirements have a cascading effect, as upstream and downstream business
relationships become part of the reporting entity’s value chain.
Positioning for sustainable procurement represents a significant market opportunity for early
adopters, providing a competitive edge that can lead to substantial rewards. As demand for
responsible business practices grows among consumers, investors, and regulators, organizations
that prioritize sustainable procurement can differentiate themselves in the marketplace,
strengthen brand loyalty, and attract ESG-focused investment.
Steps for Engaging with the Sustainability Ecosystem:
- Assess Current Position: Review the organization’s sustainability journey and practices.
- Define Goals: Set clear ESG-aligned goals for sustainable growth.
- Identify Service Needs: Determine specific sustainability needs (e.g., energy efficiency, financing, innovation, regulation etc).
- Implement and Integrate: Start implementing practices, potentially with a consultant to
guide tailored strategies and verified reporting.
Engaging a sustainability consulting firm can significantly enhance an organization’s credibility by
providing expert guidance on sustainable practices and helping establish reliable, transparent
reporting. The alignment with best practices, industry standards, and regulatory requirements
by the consultants reduces the risk of greenwashing by ensuring that claims are backed by
verified data and authentic, measurable outcomes.