Enterprises plan to direct more of their sustainability investment on reporting and compliance services than infrastructure such as cloud or network modernization, said a study done by global technology research and advisory firm ISG.
The study shows that enterprise spending on sustainability is seen as a necessity, with companies allocating around $1 of every $500 of revenue to sustainability initiatives. It said that ESG (environmental, social and governance) reporting of organisations tops enterprise sustainability sourcing plans.
The report added, “The term ‘sustainability’ covers decision-making and practices that support an organisation’s environmental, social and governance (ESG) values.” It added that sustainability-related investments vary from region to region, with American companies focussing on meeting their third-party compliance criteria and EMEA-based companies focused on accurate reporting of complex environmental data.
IT service providers have become crucial partners in areas such as IT infrastructure efficiency, data privacy and other reporting related to ESG. As per the study, about 78% of the organisations surveyed prioritised data and reporting solutions and 72% on ESG ratings and benchmarking solutions.
In comparison, only 69% of the organisations preferred to engage IT service providers on IT infrastructure optimisation and 67% of the companies preferred to engage these vendors on digital sustainability services.