The State of the Sustainability Profession 2024 report published by Trellis (formerly GreenBiz) provides an extensive overview of the evolving landscape for sustainability professionals, based on a survey of 1,185 respondents. These were predominantly employees from large US-based organizations with over $1 billion in revenue, with the majority of respondents holding manager or senior manager positions. This eighth biennial report highlights key trends, including regulatory changes, hiring practices, compensation, and the growing importance of sustainability roles within organizations.

Key Findings

1. The Unprecedented Rise of Regulation
The report emphasizes a significant increase in mandatory sustainability reporting regulations globally, particularly in the U.S. and Europe. The EU's Corporate Sustainability Reporting Directive (CSRD) will affect nearly 50,000 EU companies and 3,000 US companies, requiring these firms to disclose climate-related impacts. This shift is pushing companies to prioritize accurate ESG (Environmental, Social, Governance) data reporting, leading to a huge growth in the software market. The ESG reporting software market is expected to grow to more than $4.34 billion by 2027.

2. Staffing Trends
Sustainability teams are expanding, with 74% of respondents reporting increased staffing over the past two years. Notably, healthcare saw the biggest increase, with 88% of respondents reporting an increase in sustainability personnel on their teams. New roles, such as the ESG Controller, are emerging to ensure compliance with new regulations, reflecting a trend where sustainability functions are increasingly embedded within finance and legal departments.

3. Compensation Insights
The report indicates that compensation trends for sustainability professionals are evolving alongside their growing responsibilities and organizational significance. The average total compensation for sustainability managers is $159,430. For directors, it’s $244,649. For vice presidents, it’s $471,933.This represents the biggest increases — 37% for managers, 21% for directors, 50% for VPs — in salaries Trellis has seen in 14 years of collecting and reporting data. Another interesting note; there is an increasing number of women in sustainability leadership positions, and more broadly, 64%t of people working in sustainability today are women.

4. The Freelance Marketplace
The report also explores the rise of freelance opportunities in sustainability, highlighting how organizations are tapping into external expertise to meet their sustainability goals. Between 2019 and 2023, green freelance job posts on Upwork increased by over 500%, demonstrating the growing need for sustainability freelancers and an expanding environmental client base.

5. Challenges Ahead
Despite the growth and regulatory push, the report notes a potential decline in ambitious sustainability goals among companies due to fear of legal repercussions. Research supports the rise of “greenhushing,” referring to the downplaying or under-communicating of environmental or sustainability commitments and performance. Additionally, research shows there is slower growth of sustainability budgets. In 2022, 74% of respondents reported that their budgets had increased whereas only 4% saw it reduced. Two years later, only 57% saw their budgets increase while 9% were scaled back. This trend could undermine proactive efforts in sustainability as firms focus more on compliance than innovation.

The State of the Sustainability Profession 2024 underscores a pivotal moment for sustainability leaders as they navigate increasing regulations and shifting corporate structures. Despite challenges as organizations adapt to these changes, the demand for skilled sustainability professionals is expected to grow, making this an exciting time for those entering or advancing in the field.

Read the full report from Trellis here.