If companies around the world slow their action on sustainability, it could come with a pretty high cost. Research from Bain & Company has found that if global temperatures increase by only 2 degrees Celsius, it could slash around $6 trillion from the path of the world economy.

And that is 2 degrees more than current temperatures, which have already risen from pre-industrial levels. It goes without saying that the accompanying damage to societies, nature, and biodiversity would be equally severe.

Source: Bain & Company analysis

While sustainability remains an essential topic on the agenda of CEOs, some kind of ‘sustainability fatigue’ seems to be creeping into their agendas. Across the board, says Bain & Company’s report, leaders are finding that sustainability transformation does not come as quickly or easily as they initially planned for.

High costs and uncertain return on investment are two more major factors that have caused CEOs to hit the brakes on sustainability goals. Additional costs related with sustainability transformation have to either come from budgets or must be passed onto consumers. Many industries have very thin margins and for that reason, limited room to maneuver.

What do consumers think?

The finding that CEOs have been shifting focus away from sustainability is however in sharp contrast to what consumer think and want. For the same report, Bain & Company surveyed 19,000 consumers worldwide, finding that around 60% are more concerned about climate change than they were two years ago.

Source: Bain & Company analysis

That disparity between consumers and business leaders comes from companies juggling too many difficult concerns at once. There is huge pressure in a wide range of industries to invest big on AI, to prioritize growth, and to take bold steps to control the disruption caused by inflation and geopolitical uncertainty.

Lowering carbon emissions

The analysis from Bain & Company found that around 36% of companies are behind on their Scope 1 and 2 targets, with 51% behind on their Scope 3 targets. Scope 3 emissions are those that are further down the supply chain and not directly controlled by a company, which makes them far harder to target.

Source: Bain & Company analysis

In recent years, there has been a surge in corporate commitments to cutting carbon emissions around the world. While that is an objectively positive development, mere commitments no longer set companies apart – they must be able to demonstrate that they are making progress on their goals.

Further reading: What every CEO should ask and do to drive sustainability.

“As extreme weather events become more frequent and disruptive, consumers are no longer passive observers – they’re feeling the impact firsthand and are demanding that businesses step up,” said Akram Alami, senior partner at Bain & Company in the Middle East.

“This heightened awareness is reshaping the market, where sustainability is no longer a ‘nice-to-have’ but a crucial factor for long-term success. Companies that fail to integrate sustainability into their strategies risk not only their reputations but also their competitive edge in an increasingly eco-conscious marketplace.”

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“The Procurement Pathfinder 2024 is the result of a collaborative effort between H&Z, The Procurement Initiative, and The University of St. Gallen’s Supply Chain Institute. The Pathfinder 2024 is more than just a trend analysis; it’s an essential compass for procurement leaders,” the experts note.

Drawing from the report, the H&Z specialists have defined a number of ‘megatrends’, chief among which is a drive for procurement leaders to insulate their operations from environmental factors. As climate change, resource scarcity, and increasing regulatory pressures cause uncertainty throughout the global supply chain, the environment megatrend is influencing how procurement teams will adapt and succeed in three key areas.

1. CO2 Tracking and Management
   Speaking on the findings of their research, experts from H&Z suggest that stricter global regulations and the push for net-zero emissions have pushed procurement teams to build new strategies around their emissions. In particular, they need to work harder to “monitor and reduce carbon emissions throughout the supply chain”.
   
   Many procurement leaders are turning to new technology to do that. In particular, they are leveraging things like, carbon emission calculators – software-based calculators which can be integrated into all areas of the business process and across the supply chain to calculate the carbon footprint of a single product or the entire organisation. Many of them work in tandem with Internet of Things (IoT) technologies, including global sensor-networks, allowing for real-time CO2 tracking to better assess necessary changes.
2. Resource Efficiency
   “The days of wasteful practices are over” contend the researchers. With various supply disruptions meaning that no resource can be guaranteed – for example, escalation by Israel’s military in the Middle East is already causing shortages of textiles and automotive parts in Asia; while in Florida, businesses are struggling to resource their operations in the wake of Hurricane Helene – procurement professionals must not only focus on acquiring goods, but minimising waste of the things they already have “at every stage”.
   
   Procurement professionals can most simply leverage waste assessments to identify and manage left-over goods responsibly and efficiently. But increasingly, they are also turning to smart purchasing practices – analysing data to see peaks and troughs in when they need certain materials – to make sure they prepare for lean times ahead of schedule. At the same time, improved and flexible storage solutions which are appearing across Europe are helping to both prepare for lean times, and minimise the environmental impact of constantly shipping goods and services around.
3. Circular Economy
   Finally, the researchers suggest “one of the most critical aspects of the environment megatrend” is its resulting shift towards a circular economy. For procurement, they explain, “this means shifting from a linear “take, make, dispose” approach to sourcing secondary materials, extending product life cycles, and promoting reuse and recycling.”
   
   Circular procurement enables the purchasing party to ensure that, at the end of their service life or useful life, products or materials will be re-used effectively in a new cycle. This can reduce the waste of resources such as raw materials and energy, and thus the environmental impact of a supply chain, helping a company cut its Scope 3 emissions – which are a crucial, and often neglected part of the road to Net Zero.

Strategy for success

Advising on how to move forward, the experts suggest organisations need to take “a proactive and strategic approach”. Outlining the transition, they argue that “moving into the back half of the year and looking ahead, the time to act is now”.

“Implement immediate actions to reduce environmental impact, such as carbon tracking systems and more sustainable sourcing practices,” the H&Z experts conclude. “Begin planning for the longer-term adoption of circular economy models and prepare for future regulations focused on sustainability and environmental compliance. And continuously assess the environmental impact of your supply chain and stay informed about new technologies and innovations that can help your organisation stay ahead of environmental regulations.”

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Headquartered in the UAE, Capital Gate Advisors is a communications consultancy specializing in financial communications, investor relations, public policy, and corporate reputation management. Founded by industry veterans Ajith Henry and Wajih Halawa, Capital Gate Advisors has kickstarted with a small team in Abu Dhabi, Dubai and Riyadh, and assembled a team of (associated) consultants in major financial hubs such as London, New York, Mumbai, and Singapore.

Managing Partner Henry, who formerly led FTI Consulting’s communications business in the Middle East, said that Capital Gate Advisors positions itself as a “high-level strategic and hands-on partner who ensures the effectively implementation of strategies.” In addition, the start-up firm prides itself on a senior heavy-expert model, with each of its consultants bringing at least two decades of experience to the table.

“We’re committed to providing senior-level counsel and execution, ensuring that every client engagement benefits from direct involvement of seasoned experts. Our model emphasizes a trusted partner and collaborator mindset, working closely with clients to deliver tailored solutions that go beyond strategy to hands-on execution,” added Halawa.

From an offerings perspective, Capital Gate Advisors will provide communications services around major organizational changes (new strategy, reorganization), financial transactions (mergers & acquisitions, capital raisings, initial public offerings), and times of financial distress (crisis management, restructuring and turnaround).

Ajith Henry and Wajih Halawa are the co-founders of Capital Gate Advisors

Notably, co-founders Henry and Halawa bring an extensive track record in this space. Henry for example advised on the IPOs of Salik, Parkin, Empower, Modern Mills, Abu Dhabi Ports and ACWA Power, while Halawa during his work with Abu Dhabi investment group ADQ was part of teams that supported deals including Abu Dhabi Power Corporation and TAQA, Al Foah Dates and Agthia, and Emirates Steel and Arkan.

In the area of corporate reputation management, Capital Gate Advisors will support financial services institutions with developing and rolling out their communication plans, including in the area of ESG. The firm’s public affairs arm will support corporates with engaging with senior government stakeholders on public policy, with a focus on regulatory environments.

Capital Gate Advisors will offer a homegrown alternative to clients in the financial communications marketplace, which is traditionally dominated by global pure-play players such as Edelman, Finn Partners, Brunswick Group, FGS Global and Hill & Knowlton, and the large communications wings of management consultancies such as FTI Consulting and Teneo.

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The Big Four accountancy plans to initiate the job cuts in October, people familiar with the matter told the WSJ.

The cuts will primarily impact PwC’s advisory and products and technology operations, with half of the cuts affecting offshore roles. The layoffs will affect roles ranging from associate to managing director and include business services, audit, and tax, the people said.

“There will be an element of resource action that will impact a relatively small proportion of our people, something that is never easy,” said Paul Griggs, CEO of PwC US, in a memo obtained by the WSJ.

Griggs succeeded Tim Ryan as head of PwC US in May and returned the firm to its traditional three-business structure (audit, tax, consulting) in July. PwC in 2021 combined its tax reporting and accounting business into a single “trust solutions” line and merged tax consulting with the consulting business line.

In the September 11th-dated memo, Griggs said the company will also restructure its products and technology teams to further embed them in individual business lines and streamline business processes.

The layoffs are PwC’s first formal round of cuts since 2009, having avoided the series of cuts enacted by its Big Four peers last year. Deloitte announced a 1.5% cut to its US workforce, KPMG US cut 5% of its employees, and EY US cut 5%.

A combination of factors, including higher interest rates and weaker economic conditions, have lessened demand for certain consulting services, while a pandemic-era hiring boom followed by lower-than-expected attrition have placed further pressure on consultancies to enact layoffs.

“Ultimately, we are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities of today and tomorrow,” Griggs added.

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The Texas firm works in a variety of markets, including transportation, residential, commercial, industrial, healthcare, ports, telecom, and water and wastewater. Quiddity has practices in construction management and inspection, permitting, land planning, and program management, among other areas.

The newly launched environmental division’s offerings include environmental constraints analysis, waters of the US and wetland delineations, federally listed threatened and endangered species assessments, and environmental construction inspections. 

“We are very pleased to grow our company’s capabilities through the addition of our environmental services team,” said Clayton Black, CEO of Quiddity. “We look forward to delivering added value for our clients with this expanded range of services, and to further enhancing our collaborative approach to project delivery.”

The division is led by new hire Ryan Ingram, who brings more than 17 years of experience in the natural resources and engineering industry. He joins Quiddity from AtkinsRealis, where he was ecosciences lead for the Texas/Central region.

Before that, Ingram held project manager and environmental scientist roles at Aecom and Jacobs Engineering.

“I look forward to proactively planning and efficiently delivering quality technical reports and permit applications to exceed clients’ expectations and positively impact the communities we serve,” Ingram said.

Quiddity was founded in 1976 and has more than 650 employees across 10 offices in Texas.