Environmental sustainability has become a top 10 business priority for CEOs, demanding aligned environmental performance from souring functions. “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.”
Sustainability is Becoming a Competitive Differentiator When Selecting IT Vendors
In alignment with market demands and values, technology providers are becoming competitively focused on sustainability. By 2026, 75% of organizations will increase business with IT vendors that have demonstrable sustainability goals and timelines and will seek to replace vendors that do not.
“Organizations with sustainability targets have realized that technology vendors within their ecosystem will have a significant part to play in their success,” said White. “Sustainable sourcing, contracting and performance management are critical to minimize technology’s environmental impacts. Avoid being dazzled by providers’ headline commitments or greenwashing, and instead, review the detail behind headline commitments and validate merit and performance.”
The criticality of technology vendors with poorly aligned sustainability objectives will be identified by SPVM leaders and stakeholders. Ultimately, the services of those vendors will be scaled down and new alternatives will be found.
“Moving forward, sustainability will be a driver or fully operationalized in the decision-making process by default,” said White. “SPVM leaders must set the transformation agenda for their function, enabling sustainable consumption of technology by executing key responsibilities: evaluating vendors, contracted vendor commitments, and managing vendors.”