Energy costs, supply risks and growing AI demands reshape sustainability priorities across Europe, ISG Provider Lens® report says

LONDON: $III #AI--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.

“European enterprises increasingly expect sustainability expertise to extend beyond advice and frameworks,” said Matt Warburton, ISG principal analyst and lead author of the report. “Providers that combine strong industry knowledge with the ability to carry recommendations into implementation will be better positioned to meet those expectations.”

The report also explores other trends affecting digital sustainability approaches in Europe, including growing attention to circularity and new commercial approaches that share efficiency gains.

For more insights into digital sustainability-related challenges faced by enterprises in Europe, plus ISG’s advice for overcoming them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 68 providers across three quadrants: Strategy and Enablement Services, Asset, Product & Value Chain Solutions and IT Solutions.

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

In addition, Anthesis, Hitachi Digital Services and LTM are named as Rising Stars - companies with a “promising portfolio” and “high future potential” by ISG’s definition - in one quadrant each.

In the area of customer experience, Atos is named the global ISG CX Star Performer for 2026 among digital sustainability service providers. Atos earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

A customized version of the report is available from Deutsche Telekom/T-systems.

The 2026 ISG Provider Lens Digital Sustainability report for Europe is available to subscribers or for one-time purchase on 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

Fonte: Business Wire