Gartner predicts that by 2026, 70% of technology sourcing, procurement and vendor management (SPVM) leaders will have environmental-sustainability-aligned performance objectives for their functions.
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.”
A competitive differentiator in IT vendor selection
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 said organisations with sustainability targets have realised that technology vendors within their ecosystem will have a significant part to play in their success.
“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.”
Stephen White
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 recommends 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,” he concluded.
