European Enterprises Adopt Robust Sustainability Practices

Regulatory pressure, energy transformation drive companies toward integrated digital solutions spanning multiple enterprise functions, ISG Provider Lens^® report says

LONDON–(BUSINESS WIRE)–$III #AI–The focus of sustainability efforts by European enterprises is shifting from pure regulatory compliance to achieving measurable financial and operational outcomes, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens^® European and Global Digital Sustainability report finds that enterprises are investing in integrated environmental, social and governance (ESG) data architectures that connect sustainability information across finance, procurement, HR, operations and operational technology (OT) systems. This approach improves accuracy and governance across internal systems. Organizations are also seeking solutions for supply chain and product-level transparency to gain deeper insights into carbon emissions and workforce practices.

“European companies are aligning their strategies with the renewable energy transition to manage energy exposure, support decarbonization goals and capture new opportunities for growth,” said Matthias Paletta, director at ISG. “They are seeking providers that can translate data, AI and industry expertise into verifiable outcomes that enhance transparency, accountability and competitive differentiation.”

Enterprises across Europe are adopting digital sustainability solutions as the region’s energy mix shifts rapidly toward renewables and emissions continue to decline, the report says. Energy-intensive organizations are using digital tools, supported by accurate metering and emissions data, to manage electrification, integrate on-site renewables and improve operational flexibility. This helps enterprises adapt to a more variable power system, optimize energy use and remain competitive as decarbonization shapes operational and investment decisions.

Companies are seeking strategy and enablement services to guide their approach to double materiality, due diligence and climate risk assessment, ISG says. These efforts are part of broader transformation initiatives, supported by business cases and scenario modeling, to evaluate climate risks and explore circular economy strategies. Providers facilitate this shift with data-driven blueprints and operating models that clarify roles, responsibilities and data ownership across operational, governance and technology functions.

By integrating sustainability data with real-time decision-support tools, European organizations are gaining visibility into industrial processes, supporting cost control, more efficient use of energy and materials and reduced environmental impact, the report says. These solutions give workforces granular, contextual operational data, augmented by AI and IoT capabilities, for better daily decision-making. Providers enable this adoption through a combination of consulting, engineering expertise, advanced OT technologies and managed services for complex operational environments.

“After a period of rapid expansion, Europe’s digital sustainability market is maturing as providers sharpen portfolios around clear, outcome-driven use cases,” said Matt Warburton, principal consultant and digital sustainability lead at ISG and lead author of the report. “Enterprises seek providers that pair concrete environmental, social and economic outcomes with transparent, data-driven delivery models.”

The report also explores other trends in digital sustainability, including skill gaps that affect both enterprises and providers and the deployment of GenAI to produce qualitative narratives for corporate sustainability reporting.

For more insights into the digital sustainability-related challenges European enterprises are facing, along with ISG’s advice for addressing them, see the ISG Provider Lens^® Focal Points briefing here.

The 2025 ISG Provider Lens^® European and Global Digital Sustainability report evaluates 70 unique providers across three quadrants in the European market: Strategy and Enablement Services, OT and Industry-specific Solutions and Services and IT Solutions and Services.

The report names Accenture, Capgemini, Cognizant, Deutsche Telekom/T-Systems, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in three quadrants each. It names Deloitte, EY, NTT DATA and PwC as Leaders in two quadrants each. Atos, BCG, ERM, Hitachi Digital Services, Kyndryl, L&T Technology Services, McKinsey & Company, Microsoft and Schneider Electric are named as Leaders in one quadrant each.

In addition, Genpact, LTIMindtree and Siemens are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

The report also evaluates the capabilities of 56 providers across two quadrants that span the global market: Data Advisory and Integration Services and Data Platforms and Managed Services.

The report names Accenture, Capgemini, Cognizant, Genpact, HCLTech, IBM, Infosys, Tech Mahindra and Wipro as Leaders in both quadrants. It names Cority, Deloitte, EcoVadis, EY, LTIMindtree, Microsoft, PwC, SAP, Sphera, Wolters Kluwer and Workiva as Leaders in one quadrant each.

In addition, Deutsche Telekom/T-Systems is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

Customized versions of the report are available from Atos, Deutsche Telekom/T-Systems, Kyndryl, and NTT Data.

The 2025 ISG Provider Lens^® European and Global Digital Sustainability report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens^® Research

The ISG Provider Lens^® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Contacts

Press Contacts:
Laura Hupprich, ISG
+1 203-517-3100
laura.hupprich@isg-one.com

Philipp Jaensch, ISG
+49 151 730 365 76
philipp.jaensch@isg-one.com