A new robust yet simple matrix developed by Exponential Roadmap Initiative, with key contributors AFRY and Futerra, enables professional services providers to assess how their clients and projects align with climate ambition.
Consulting and marketing firms and other professional services providers do not themselves have high greenhouse gas emissions through their value chains. But they may have a considerable positive or negative climate impact from the clients they work with and projects they work on, the so-called serviced emissions. The new Professional Services Matrix allows these companies to easily assess their customers and projects and make strategic decisions in line with sustainability targets.
How the Professional Services Matrix (PSM) works
The Professional Services Matrix (PSM) applies four criteria to allow mapping both customers and projects, respectively, along the matrix’ two dimensions. For assessing customers, the matrix determines whether the customer is a climate solutions company, a 1-5°C aligned entity, a non-aligned entity or a non-aligned high emitter.
Projects are assessed against whether they accelerate deforestation or fossil fuel expansion at one end of the spectrum, or whether they accelerate climate solutions, on the other end of the spectrum. Circles in different sizes represent the revenue associated with each customer and project, visualising where the professional services provider stands with regard to the climate alignment of its customers and projects. The matrix thus increases internal transparency and enables easy monitoring of progress.
Why we developed the Professional Services Matrix
The matrix was developed for professional services providers by Exponential Roadmap Initiative, supported by AFRY and Futerra and lends itself as a strategic tool for assessing the current project portfolio, setting targets and growth/divestment strategies, making informed decisions about the continuing or discontinuing certain customers and projects, and acquiring new customers and projects.
Johan Falk, CEO, Exponential Roadmap Initiative:
The focus has been on all companies reducing emissions in their operations and value chains, and indeed these need to halve by 2030. But the positive or negative impact that professional services providers have on climate and nature comes mostly from their project and clients. We developed the Professional Services Matrix to be a game changer for consultancy companies in management, engineering, marketing and other industries to drive change in the global economy as well as create a resilient business that can grow over time. Professional services companies now have an opportunity to put laser focus on how they shift their portfolios away from projects and clients that drive the destruction of nature and climate towards those that accelerate climate solutions and action.
Sara Lindstrand, Director of Sustainability, AFRY:
The Professional Services Matrix supports us at AFRY to set a direction for our business to deliver on our sustainability ambitions. It provides clear, actionable insights about our portfolio, enabling us to make decisions that align with both our sustainability targets and those of our clients in line with the 1.5-degree ambition.
Solitaire Townsend, Co-founder and Chief Solutionist, Futerra:
Futerra trailed parts of this Professional Service Matrix when we became the first professional services Climate Solutions Provider in the Race to Zero. The process was incredibly useful for strengthening our governance, with recruiting talent and for engaging clients. For professional services firms, the PSM is a game-changer in aligning business strategy with climate ambition.
Within the Race to Zero campaign that is led by the High-Level Climate Champions, a consultation on serviced emissions and enhancing the opportunities for aligning the provision of services and advice by professional servicecs providers with the 1.5°C future kicked off at COP28. A final report is will be presented at Climate Week NYC.
Ramiro Fernández, Campaign Director, UN Climate Change High-Level Champions:
The Professional Services Matrix empowers professional services firms to address their serviced emissions. By building on Race to Zero’s report “Catalysing Climate Action: The role of professional service providers in a net-zero future,” this matrix encourages strategic client and project choices. This simple tool helps all businesses to become a driving force in the global transition to net zero.