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Technology investments will have Environmental-Sustainability-Aligned performance objectives

by Pieter Werner

Environmental Sustainability has become a top business priority for CEOs, demanding aligned performance from sourcing. Therefore, by 2026, 70% of technology sourcing, procurement and vendor management (SPVM) leaders will have environmental-sustainability-aligned performance objectives for their functions, according to research by Gartner.

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 rigour into operations and objectives.”

In alignment with market demands and values, technology providers are becoming competitively focused on sustainability. By 2026, 75% of organisations will increase business with IT vendors that have demonstrable sustainability goals and timelines and will seek to replace vendors that do not.

“Organisations with sustainability targets have realised 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 minimise 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 operationalised 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.”

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