Cost is Top Challenge to Achieving Enterprise Sustainability, ISG Study Finds
14 Maio 2024 - 2:54PM
Business Wire
Survey of global sustainability leaders
finds enterprises plan to engage providers to fill ESG resource
gaps
New survey research from leading global technology research and
advisory firm Information Services Group (ISG) (Nasdaq: III) finds
cost is the biggest barrier to achieving enterprise sustainability
goals, with more money spent on reporting and compliance than on
digital programs that drive actual business benefits.
The ISG Market Lens™ Digital Sustainability Study asked more
than 200 leaders worldwide to rank their organization’s top
sustainability challenges. Cost is the top challenge, cited by 45
percent of respondents, followed by integrating sustainability into
business metrics (34 percent), and prioritizing sustainability
investments (31 percent).
Large enterprises are spending, on average, about 0.2 percent of
revenues on sustainability initiatives, the study found. Half of
that spending is on environmental initiatives and the remaining
half is split almost equally between social and governance
programs.
Digital sustainability—the use of information technology and
associated services to improve the environmental and/or social
sustainability of an organization—accounts for 35 percent of
general enterprise sustainability spending, the study found.
Within the digital sustainability budget, 60 percent of
respondents say spending on data and reporting solutions will
account for the greatest proportion of their spending in 2024,
followed by digital sustainability strategy services (51 percent)
and industrial and operational optimization solutions (46 percent).
The latter includes a broad array of digital, data-led solutions,
ranging from software to sensors, that enterprises use to support
informed decision-making and to prioritize sustainability
investments.
“Companies plan to spend more on reporting and compliance this
year than on any other area of digital sustainability,” said
Michael Dornan, principal analyst and co-author of the study. “As
with so many business domains, sustainability progress is limited
by the ability to collect and analyze data. Enterprises need
technology and business services providers to help report on their
progress and benchmark their sustainability performance against
others.”
The biggest reporting challenge, respondents say, is the
accuracy of data, particularly for scope-three emissions (those
produced by others in a company’s value chain). Compliance with
climate-related financial disclosures is the greatest perceived
enterprise reporting risk, the study shows.
Eighty-five percent of enterprises have engaged managed services
providers to support overall sustainability programs, the study
found, and 39 percent are using providers to run ESG-specific
programs. The remainder are building sustainability goals into new
and existing programs with providers or holding them accountable
for meeting sustainability goals.
Around 60 percent of enterprises expect to engage a service
provider for ESG data and reporting, and 45 percent expect to
engage a provider for lower-priority initiatives such as end-user
device optimization.
“There is a wide expectation that ESG-related partnerships with
service providers will grow in 2024,” said Alex Bakker, ISG
Distinguished Analyst and co-author of the study. “Three-quarters
of our respondents say they have insufficient skills and resources
to meet their ESG needs over the next two years and will rely on
service providers to not only plug that gap but help them evolve
ESG programs from a complex reporting exercise driven by regulation
to a program that drives real value for the business."
The ISG Market Lens study was conducted globally in February
2024 and covered 232 executives with decision-making responsibility
for sustainability strategy and operations covering environmental,
social and governance programs.
ISG Market Lens buyer behavior studies combine findings from
surveys of senior-level global executives with expert ISG research
and analysis on market trends and strategic business initiatives.
Recent studies explored AI, application development and maintenance
, cost optimization, cybersecurity, global capability centers,
network modernization, banking and the future workplace.
Contact ISG for more information on ISG Market Lens
research.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 900 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including AI and automation, cloud and data analytics; sourcing
advisory; managed governance and risk services; network carrier
services; strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,600
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240514434945/en/
Press Contacts: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Julianna Sheridan, Matter Communications
for ISG +1 978 518 4520 isg@matternow.com
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