The Growing Role Of Third-Party Consultants In Decarbonization And Net Zero Activities

The Growing Role Of Third-Party Consultants In Decarbonization And Net Zero Activities

Industrial firms view a rapid reduction in greenhouse gas emission as essential for their future. With the Paris Agreement - and the more recent EU carbon border tax - impacting industries, businesses worldwide must initiate aggressive decarbonization efforts to reduce carbon footprints and meet sustainability targets. However, achieving these goals is no small feat. Industrial firms face a complex landscape of decarbonization technologies, rising regulatory pressures, shifting consumer preferences for sustainable products and increased investor scrutiny on environmental performance.

In response, operations, maintenance and engineering executives are turning to external experts to help develop and implement strategies that achieve net zero, production efficiency and digitization targets. In the Verdantix 2024 industrial operations and maintenance services survey, 54% of respondents responsible for investments in consultant-led initiatives reported that third-party service providers handled all or most of their decarbonization road mapping and carbon emissions reduction activities. Additionally, 40% of decision-makers plan to increase spending on third-party service providers - such as Arcadis, ERM and EY - to achieve their decarbonization and sustainable operations initiatives. Industrial firms are turning to consultants for:

• Specialized expertise.
  Decarbonization activities vary in complexity and include process design, engineering, energy storage, policy alignment and capital investments. With no established best practices or one-size-fits-all solutions for industrial plant decarbonization, consultants with access to a wealth of industrial knowledge, regulatory insights and innovative technologies can create tailored strategies that meet individual firm's specific needs. For example, service providers such as Wood Group leverage their strong presence in the oil and gas industry to create detailed decarbonization roadmaps and evaluate the potential of emerging technologies - like carbon capture, usage and storage (CCUS) - for their clients.
• Accelerating innovation and implementation.
  Industrial firms often struggle to keep up with rapid advancements in decarbonization technologies. As both existing and emerging solutions become more viable - driven by lower clean energy costs and evolving operational demands - organizations must identify which technologies align with their strategic objectives. Consultants, at the forefront of these developments, guide firms through this complex landscape. They offer clear roadmaps for evaluating and integrating the right technologies, ensuring that investments are future-proof and aligned with long-term sustainability goals. For example, engineering services firm Jacobs offers its Fleet Max Energy modelling software to support the transport industry in transitioning from fossil fuel fleets to zero-emission alternatives.
• Regulatory and reporting alignment.
  Governments have introduced significant regulations and incentives, like the EU's Green Deal and the US's Inflation Reduction Act, to drive emissions reductions and accelerate clean technology adoption. In this context, consultants play a vital role in helping firms navigate compliance and reporting requirements. For example, SCS Global Services, an environmental services provider, offers pharmaceutical suppliers services for assessing and reporting Scope 1, 2 and 3 emissions, verifying sustainability data, setting science-based targets and developing sustainability programmes using frameworks like the Sustainability Accounting Standards Board (SASB).

As the global drive toward decarbonization intensifies, the reliance on consultants will likely deepen, empowering industrial firms to not only achieve ambitious net zero objectives, but also successfully navigate the complex landscape of emerging technologies, stringent regulations and shifting market dynamics. With third-party support, industrial organizations will be best-placed to address specific industrial challenges and ensure long-term viability.

For more information on how firms are leveraging industrial service providers across heavy asset industries, please read Global Corporate Survey 2024: Industrial Operations And Maintenance Services Budgets, Priorities And Tech Preferences.