Firms with sustainability goals are likely to get more business: Gartner

As environmental sustainability is increasingly becoming a top business priority for CEOs, by 2026, 75% of organisations will increase business with tech vendors with demonstrable sustainability goals, according to market research firm Gartner.  

Gartner also mentioned that organisations will seek to replace IT vendors that do not have sustainability goals and timelines. The research firm warned that “the services of those vendors will be scaled down and new alternatives will be found”. 

“Environmental sustainability directives require all functions to adjust in line,” said Stephen White, senior director analyst at Gartner. “Sourcing, contracting and vendor management must all adapt with urgency by incorporating sustainability rigor into operations and objectives.” 

According to White, organisations with sustainability targets have realised that technology vendors within their ecosystem will have a significant part to play in their success.  

Already, some companies are financing innovation and production-capacity increases for the low-emissions materials they require. For example, automaker Mercedes-Benz partnered with Swedish manufacturer of commercial vehicles, Scania, and have each acquired equity stakes in H2 Green Steel, a Swedish start-up that is constructing both a green-steel plant and a green-hydrogen plant that will produce the fuel needed for steelmaking. Similarly, BMW announced an investment in Boston Metal, a US-based green-steel start-up. 

The Consumer Electronics Show (CES 2023) this year, also focused on ‘sustainability’ as one of the key strategies companies are embracing to stay ahead of their competitors. Schneider Electric for example debuted its smart home energy ecosystem that is designed to save consumers money on energy and maximize their home's efficiency. 

South Korean electronics major, Samsung, too has stressed its dedication to the environment through a variety of sustainability goals, cutting-edge product design, and collaborations at the global event. With the DX Division switching to 100% renewable energy by 2027 and attaining net zero carbon emissions by 2030, Samsung expects to achieve net zero carbon emissions by 2050.  Further, Japanese electronics maker, Sony has partnered with Honda on its electric car project Afeela to bring sustainable electronic cars to the market. There are many more examples of companies - from the largest tech giants to the smallest startups – that are embracing sustainability to bring efficient and sustainable products in the market. 

“Moving forward, sustainability will be a driver or fully operationalised in the decision-making process by default,” said White, who added that companies must “set the transformation agenda for their function, and execute key responsibilities such as evaluating and managing vendors to be a major contributor to the environment.