The Shift to Fractional Consulting and Technology in Sustainability

Based on an interview with Alex Bexon, LDC (the private equity arm of Lloyds Banking Group).

From Reports to Real Integration

Not long ago, sustainability consulting often meant a project-based engagement: a two-month piece of work, delivered as a glossy PDF, and filed away once complete. But in 2025, that model is giving way to something more integrated and continuous.

As Alex Bexon observed from his work in private equity:

“A lot fewer portfolio companies go to consultants now for a specific piece of work. There’s a much greater move towards fractional or outsourced consulting—platforms providing a team that integrates into a company for a period of time, maybe one day a week over the course of a year.”

This trend reflects a broader shift: businesses no longer want sustainability as an isolated project. They want it embedded in their operations, decision-making, and growth strategy.

Why the Old Model Is Breaking Down

The traditional consulting model has its limits:

• High cost, low continuity – Expensive projects deliver insights but leave companies without ongoing support.
• Reports without implementation – Businesses often receive recommendations but lack the in-house capability to execute.
• Reactive, not proactive – By the time a report is delivered, market expectations may have already moved on.

For SMEs and mid-market firms—like those in LDC’s portfolio—this model doesn’t deliver the flexibility or long-term integration needed.

The Rise of Fractional Sustainability Expertise

Fractional consulting is filling the gap. Instead of a one-off project, companies contract sustainability experts or teams to work with them part-time, on an embedded basis.

According to a 2024 Deloitte survey, 42% of mid-sized businesses now prefer flexible sustainability support over full-time hires. This approach delivers:

• Continuity – Ongoing advice that evolves with the business.
• Cost efficiency – Access to senior expertise without the full salary.
• Integration – Experts work within the company’s structures and culture, not outside them.

Alex explained the value:

“It’s not about a nice PDF report anymore. It’s about people who become part of the team and drive change over time.”

Technology as the New Multiplier

Alongside fractional expertise, technology is transforming how sustainability is managed. ESG data platforms and sustainability software now allow businesses to:

• Automate reporting across multiple frameworks.
• Track carbon and energy use in real time.
• Model risk and opportunity scenarios.
• Benchmark performance against peers and industry standards.

The global ESG software market is expected to exceed $2.5 billion by 2027 (MarketsandMarkets). For private equity portfolio companies, these tools provide visibility across multiple businesses and standardise data collection.

Alex hinted at this trend too:

“There’s a much greater move towards fractional or outsourced consulting… Or using technology.”

The best solutions often combine both: embedded expertise to interpret the data and technology to scale reporting and insights.

What This Means for the Market

The shift toward embedded sustainability expertise and technology is reshaping how businesses, especially SMEs, approach ESG. It reflects three big market realities:

1. Expectations are continuous, not episodic. Customers and regulators want ongoing progress, not a single report.
2. Budgets demand flexibility. Most SMEs can’t justify a full-time head of sustainability but need consistent support.
3. Data is now central. Without technology, managing sustainability at scale is nearly impossible.

For private equity, this evolution is critical. Value creation now depends on ensuring portfolio companies can demonstrate credible, ongoing ESG performance—something that can only be achieved through embedded expertise and scalable tools.

Beyond the PDF

The consulting world is evolving. Sustainability can no longer live in a static report—it has to live inside the business. Fractional experts and technology platforms are making that possible, giving companies the capability to not just measure ESG, but act on it continuously.

As Alex highlighted, the real winners will be those who integrate sustainability into their day-to-day operations:

“It’s about embedding expertise, not outsourcing the responsibility.”

Discover how Rio AI combines expert insight with technology to help businesses embed sustainability for the long term. Book a demo today