European Enterprises Adopt Robust Sustainability Practices

The focus of sustainability efforts by European enterprises is shifting from pure regulatory compliance to achieving measurable financial and operational outcomes, 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 2025 ISG Provider Lens European and Global Digital Sustainability report finds that enterprises are investing in integrated environmental, social and governance (ESG) data architectures that connect sustainability information across finance, procurement, HR, operations and operational technology (OT) systems. This approach improves accuracy and governance across internal systems. Organizations are also seeking solutions for supply chain and product-level transparency to gain deeper insights into carbon emissions and workforce practices.

“European companies are aligning their strategies with the renewable energy transition to manage energy exposure, support decarbonization goals and capture new opportunities for growth,” said Matthias Paletta, director at ISG. “They are seeking providers that can translate data, AI and industry expertise into verifiable outcomes that enhance transparency, accountability and competitive differentiation.”

Enterprises across Europe are adopting digital sustainability solutions as the region’s energy mix shifts rapidly toward renewables and emissions continue to decline, the report says. Energy-intensive organizations are using digital tools, supported by accurate metering and emissions data, to manage electrification, integrate on-site renewables and improve operational flexibility. This helps enterprises adapt to a more variable power system, optimize energy use and remain competitive as decarbonization shapes operational and investment decisions.

Companies are seeking strategy and enablement services to guide their approach to double materiality, due diligence and climate risk assessment, ISG says. These efforts are part of broader transformation initiatives, supported by business cases and scenario modeling, to evaluate climate risks and explore circular economy strategies. Providers facilitate this shift with data-driven blueprints and operating models that clarify roles, responsibilities and data ownership across operational, governance and technology functions.