{"id":5187,"date":"2022-08-03T12:59:44","date_gmt":"2022-08-03T12:59:44","guid":{"rendered":"https:\/\/www.horsesforsources.com\/2022-hfs-app-modernization-top-10_022422-copy\/"},"modified":"2022-08-06T12:41:17","modified_gmt":"2022-08-06T12:41:17","slug":"2022-sutainability-top-10_080422","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/2022-sutainability-top-10_080422\/","title":{"rendered":"ERM, EY, IBM, Accenture, and Capgemini tip-top the HFS Sustainability Top 10"},"content":{"rendered":"

\"\"<\/p>\n

Sustainability is a massive problem involving multiple interconnected factors – literally, everything happening everywhere links to it in major or minor ways.\u00a0\u00a0Those systems need to align rapidly to the global context.<\/p>\n

Consulting, technology, and services firms sit at the center of these vast systems<\/em>. The leaders have realized the scale of impact they can have from that center. They are addressing their own organizations\u2019 sustainability\u2014but more importantly, they are doing so with their clients and partners. They use their networks to drive the level of collaboration and alignment we need. They can scale best practices and solutions.<\/p>\n

The leading providers of sustainability consulting, technology, and services in this report influence and help to transform organizations, industries, systems, and governments, which must all build and execute transition plans that align towards decarbonization and every other environmental, social, and governance factor underpinning the UN Sustainable Development Goals.<\/p>\n

I sat down with Josh Matthews (you can see him above speaking at COP26 in Glasgow last November), our Practice Leader for sustainability, to dig into the results of this new research.<\/p>\n

\"\"<\/p>\n

Click to Enlarge<\/a><\/em><\/p>\n

To download a copy of the report, please click here<\/a>.<\/strong><\/p>\n

Phil Fersht, CEO and Chief Analyst, HFS Research:\u00a0<\/strong>Firstly, Josh, how does HFS define \u201csustainability\u201d these days\u2026 has your attitude \/ focus towards the whole sustainability topic shifted since you started writing about it for us in pre-pandemic times?<\/span><\/p>\n

\"\"<\/a>
Sustainability Practice Leader Josh Matthews (click for bio)<\/figcaption><\/figure>\n

Josh Matthews, Practice Leader, HFS\u00a0Research:\u00a0<\/strong>Sustainability has to include all environmental, social, and governance (ESG) elements. Companies, governments, industries, and entire ecosystems need to build and align roadmaps under the global sustainability context: that means reducing emissions to zero (or at worst) net-zero by 2050 (or ideally as soon as possible) and addressing all the other ESG factors underpinning the 17 UN Sustainable Development Goals (SDGs). These roadmaps have to start at the systems level and break down to day-to-day operations in organizations. The most ambitious and influential organizations in their ecosystems will be the ones to drive collaboration and alignment to this context. I guess we\u2019ll talk about them later on\u2026<\/p>\n

But the fact we have goals for sustainability is a massive advantage. Yes, the goals that make up the global context need refinement and detail the transition planning underpinning them (the SDGs are based on this in some detail), but contrast this to the last 10 to 15 years where we all saw organizations chase the vague specter of digital transformation without an endpoint in sight.<\/p>\n

Our systems are not good enough to address sustainability. But too many of the most influential firms use this as an excuse for not moving first and bringing their ecosystems with them. There is a glaring opportunity in all industries and ecosystems for organizations and coalitions to set the standard by reinventing business models and loudly disclosing their transition plans. These leaders must show their ecosystems\u2014including competitors and regulators\u2014that addressing the entire global sustainability context is not only competitive but also by far the best environmental, social, and financial option now and in the coming decades. This applies in spades to sustainability consulting, technology, and services firms.<\/p>\n

Phil: <\/strong>What has stood out to you most with the service providers, both in terms of where they are delivering value and facing challenges?<\/span><\/p>\n

Josh:\u00a0<\/strong>Growth is soaring across sustainability services revenues, headcounts, and clients\u2014we expect approximately 240%, 190%, and 210% growth, respectively, over the next two years. Together, the 18 leading firms in this study account for more than $13 billion, 68,000 employees, and 22,000 clients dedicated to sustainability services. Seventy-five percent (75%) of their clients are located in North America or Europe. Clients are more impressed with execution capabilities versus innovation. Case studies and references proving technical and domain expertise are more vital in winning business for sustainability than in most areas. Maturity is high across the value chain, with net-zero roadmapping, platforms, and ESG reporting as standouts.<\/p>\n

More than 80% of organizations don\u2019t have the plans they need to address sustainability internally, let alone influence systems. Employees want to work for firms that act on sustainability and have it embedded throughout the organization. There\u2019s a talent shortage for deep sustainability expertise. The energy, utilities, manufacturing, financial services, and consumer goods industries show the most demand for sustainability services. Given their impacts on sustainability beyond their industry walls, they are critical in addressing the global context. Analytics is the most widely used digital technology for sustainability efforts, followed by cloud and automation. Demand is increasing across the sustainability services value chain from consulting to technology and managed services; supply chain and procurement strategy, net-zero roadmapping, platforms, and ESG reporting stand out. The roadmapping approach must also be applied to social sustainability.<\/p>\n

Phil:\u00a0<\/strong>And who impressed you out of the Top 5 we selected? What sets them apart from the rest, Josh?<\/span><\/p>\n

Josh:\u00a0<\/strong>ERM, EY, IBM, Accenture, and Capgemini make up our top 5 overall. The firms that lead the leaders in this study are set to make the most significant impact across the global sustainability context. However, it is not just a token nicety to say we have been beyond impressed with all 18 firms profiled. Most have developed scaled revenues and headcounts, growing at pace with the market. They have broad capabilities across the value chain and beyond. They have large clients and case study pools with examples of deep strategic engagements with the most influential firms poised to change their systems. Their strategies are clear, ambitious, and aligned with the global context. They use a broad range of technologies and IP and have impressive R&D initiatives. Their ecosystems are powerful across partnerships, acquisitions, co-innovation, and global networks. Customer references speak highly.<\/p>\n

But specifically on the top 5:<\/p>\n