Why professional services firms are the key to unlocking sustainability

like As the race to net zero enters a crucial phase, a new concept is gaining traction among business leaders: “serviced emissions.” Corporate sustainability is often focused on heavy industries including energy, transportation and manufacturing. This is with good reason: together, these industries account for more than 75% of global greenhouse gas emissions. However, such industries also share an important point of leverage: their reliance on professional service firms, including accounting or marketing service providers. The concept of serviced emissions makes this clear – and sets out the steps firms can take as a result.

The Working Group of Professional Service Providers of the United Nations Climate Champions defines serviced emissions as GHG emissions resulting from – or influenced by – client activities informed and/or enabled by the advice and/or services of professional service providers. This seemingly technical definition puts the spotlight on consultancies, law firms and a variety of similar companies. Conventionally viewed as the behind-the-scenes “enablers” of their clients, professional services firms now find themselves understanding a new strategic imperative—how their activities impact their clients’ operations and, as a result, emissions. theirs.

Serviced emission lenses are powerful. For leaders of professional services firms, it offers a new way to understand their business impact—and to innovate in response. UN task force co-chairs Ranjita Rajan and Alexis McGivern point out that the concept highlights both the risks and opportunities facing professional service firms. On the one hand, a firm can deal with how its activities enable its customers to generate significant emissions. On the other hand, a firm can “have the power to overcome the global net zero transition by aligning client advice with 1.5°C goals”.

Current net zero corporation guidance is largely silent on the subject of emissions resulting from the services a firm provides. The concept of serviced emissions, then, emphasizes the opportunity for professional services firms to use their influence to lead clients, creating what Rajan and McGivern call a “board” for leadership.

This is already happening. Advertising and PR professionals can connect with initiatives ranging from Clean Creatives to Ad Net Zero. Architects and designers can learn from efforts such as Built Environment Declare, which is now active in more than 25 countries. Legal professionals can refer to Legal Charter 1.5, which brings together law firms to develop client emissions reduction methodologies. Tools like the new Professional Services Matrix enable all professional services firms to take meaningful steps to measure their impact through their clients.

Professional service firms applying serviced emission lenses to their work may encounter surprises. In their latest report, the UN task force details the experience of a leading global advertising agency that found emissions from their top 20 clients were more than 4,000 times higher than their operational emissions. The potential for impact is significant.

Four key steps you can take

To seize the opportunity to drive real change through their approach to serviced emissions, professional services firms can take four key steps:

1. Measure and detect emissions serviced: Develop methodologies to assess the environmental impact of customer activities impacted by their services.
2. Integrate sustainability into core offerings: Incorporate sustainability principles into consulting, legal advice, financial products and marketing strategies.
3. Partner with customers on sustainability journeys: Help clients set ambitious climate goals, develop sustainable action plans and measure progress.
4. Advocate for sustainable policies: Use their voice to influence policy makers and create an enabling environment for sustainable business practices.

Serviced emissions present both a challenge and a strategic opportunity. By applying this lens to every aspect of their work, professional services firms can better understand their business and amplify their impact. By doing so, they not only future-proof their businesses, but can also become the backbone of sustainable business transformation. The spotlight is on.