GlobalData Sees ESG Resilience Amid Disruption
GlobalData says that environmental, social, and governance (ESG) will continue to be a long-term strategic priority for technology service providers and businesses, even though there have been some unexpected events with less-than-ideal results recently.
New research from the analyst firm showed that the COVID-19 pandemic, trade disputes, and geopolitical uncertainty affected organisations' short-term priorities and digital transformation efforts, but ESG was not affected.
Progress on ESG initiatives “during 2022 in enterprise tech was solid” and became “a tangible move toward delivering results following previous hype,” Senior Analyst Robert Pritchard wrote.
Most top service providers measure and report on their climate and social goals. They do this to be transparent, to show they care about the environment, and to deliver results for enterprise customers.
“Product and service innovations can deliver operational efficiency, enhance productivity, and ultimately improve customers’ bottom lines,” he explained.
But ESG progress isn't just good for business customers. Technology service providers can find new ways to make money by offering services that help companies reach their ESG goals.
"This can be done with new products, which are sometimes made in collaboration with customers, and by offering platforms that help companies report on sustainability and energy use along the supply chain to meet scope 3 targets," Prichard said.
Cloud service providers like Google Cloud, Microsoft, and Amazon Web Services (AWS), for example, give their customers tools to measure, report, and cut down on the carbon they release when using their cloud services.
Pritchard thinks that the UN COP programme, customer demand, regulation, the influence of investors and talent, and government actions will be the main factors that keep ESG markets and services healthy and help them grow.
“The climate crisis is evident around the world, and many challenges need addressing in the social and governance fields. But it is not all gloom and doom: genuine progress is being made to address the climate crisis, and tech ESG solutions can deliver new revenue streams and cement longer-term customer relationships at a time when many legacy products and services continue to commoditise,” Pritchard concluded.
Source: sdx central