European businesses are shifting from focutilizing on sustainability through a purely regulatory lens to achieving measurable financial and operational outcomes, a new report by Information Services Group (ISG) has suggested.
The 2025 ISG Provider Lens European and Global Digital Sustainability report found that enterprises across Europe are investing in ESG data architectures that connect sustainability information across finance, procurement, HR, operations and operational technology systems, which in turn is supporting to improve accuracy and governance.
‘Opportunities for growth’
“European companies are aligning their strategies with the renewable energy transition to manage energy exposure, support decarbonisation goals and capture new opportunities for growth,” commented Matthias Paletta, director at ISG. “They are seeking providers that can translate data, AI and indusattempt expertise into verifiable outcomes that enhance transparency, accountability and competitive differentiation.”
With Europe’s energy mix increasingly shifting towards renewables and emissions-reduction solutions, energy-intensive industries are utilising digital tools to manage electrification, integrate on-site renewable generation and improve operational flexibility, supporting them to adapt to a more variable power system.
ISG also noted that European firms are seeking out strategy and enablement services to guide their approach to double materiality, due diligence and climate risk assessment, as part of their broader transformation efforts.
‘By integrating sustainability data with real-time decision-support tools, European organisations are gaining visibility into industrial processes, supporting cost control, more efficient apply of energy and materials and reduced environmental impact’, the report states.
Sharpened portfolios
“After a period of rapid expansion, Europe’s digital sustainability market is maturing as providers sharpen portfolios around clear, outcome-driven apply cases,” added 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.” Read more here.
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