Environmental sustainability makes it to top 10 of CEO priorities

By 2026, 70% of technology sourcing, procurement and vendor management (SPVM) leaders will have environmental-sustainability-aligned performance objectives for their functions, according to Gartner.

Environmental sustainability has become a top 10 business priority for CEOs, demanding aligned environmental performance from souring functions, the analysts state.

Stephen White, Senior Director Analyst at Gartner, comments on the findings, saying, "Environmental sustainability directives require all functions to adjust in line."

White continues, "Sourcing, contracting and vendor management must all adapt with urgency by incorporating sustainability rigour 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 organisations will increase business with IT vendors that have demonstrable sustainability goals and timelines and will seek to replace vendors that do not.

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

He says, "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.

White continues, "Moving forward, sustainability will be a driver or fully operationalised in the decision-making process by default.

"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."

Gartner clients can read more in "Predicts 2023: Environmental Sustainability Is Now an IT Sourcing Imperative."

This follows ongoing research and findings from the analysts, including the 2022 Gartner Sustainability Opportunities, Risks and Technologies Survey, which revealed:

• 86% of business leaders see sustainability as an investment that protects their organisation from disruption
• Four out of five leaders see sustainability as helping their organisation to optimise and reduce costs
• 83% say their sustainability program activities directly created both short- and long-term value for their organisation

Gartner for Information Technology Executives is designed to provide actionable, objective insight to CIOs and IT leaders to help them drive their organisations through digital transformation and lead business growth, the company states.

Gartner itself is focused on delivering actionable, objective insight to executives and their teams. The expert guidance and tools are designed to enable faster, smarter decisions and stronger performance on an organisation's mission critical priorities.