European Firms Link Sustainability to Business Resilience
Energy costs, supply risks and growing AI demands reshape sustainability priorities across Europe, ISG Provider Lens® report says
LONDON, October 15, 2026--Enterprises in Europe are becoming more selective about digital sustainability initiatives, focusing on efforts that strengthen resilience and support long-term competitiveness, 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 2026 ISG Provider Lens® Digital Sustainability report for Europe finds that sustainability is becoming part of everyday business decisions made under rapidly changing conditions. As companies incorporate environmental considerations into planning and operations, finance, procurement, operations, product and IT teams are assuming greater responsibility.
"European companies need sustainability programs that can adapt as conditions change," said Matthias Paletta, director at ISG. "A flexible approach helps them meet changing requirements without creating solutions that are difficult to adjust."
European enterprises are placing greater emphasis on carrying sustainability plans through to implementation, the report says. Buyers evaluate both the quality of a strategy and whether recommendations can be successfully implemented. They favor approaches that maintain continuity from initial advice through delivery, with clear accountability as work progresses. This is increasing pressure on providers to better connect planning and execution and keep sustainability programs aligned with business needs.
Asset-heavy enterprises are expanding efforts to reduce energy and water use and improve maintenance, using operational data, AI, the Internet of Things and digital twins to guide decisions. Rather than treating pilots as evidence of progress, buyers increasingly require verified savings, longer uptime or improved resilience before scaling deployments. Product and procurement teams are also building lifecycle assessment, carbon footprint and traceability capabilities into existing manufacturing and enterprise systems. This allows them to adapt as packaging rules, material constraints and customer requirements for components and products become more specific.
Rapid growth in the use of generative AI is changing how European enterprises assess the environmental impact of IT, the report says. Technology leaders are extending efficiency practices beyond cloud infrastructure to AI workloads, data centers, software and devices. Highly regulated organizations in particular are placing greater emphasis on where computing occurs and how automated systems are governed, linking resource use to data sovereignty and security. As these requirements grow, buyers expect more detailed information on the resources consumed by AI and IT operations over time.