When it comes to ESG initiatives, it doesn’t have to be the case that you must do it alone.
The Corporate Governance Institute notes that having ESG at the heart of a professional partnership can ‘strengthen the bond between parties, including commercial position and joint ESG commitments.’ A corporate partner may help with funding, as well as have the authority to demand change, as well as provide a yardstick; checking that you’re operating responsibly, as well as engaging with other businesses which also hold high sustainability standards.
There is also an important relationship between professional services firms and technology service providers to consider, which can also impact end user businesses.
Jeffrey Hojlo, research vice president at IDC, put it succinctly. “Since their maturity levels regarding sustainable transformation are generally still relatively low, many organisations also require a significant amount of help from professional services providers regarding their sustainable business and IT strategy setting,” wrote Hojlo.
This has subsequently led to various partnerships between professional services firms and IT providers to help create go-to-market strategies. Yet data from IDC has shown that many organisations still struggle with ESG from a data prespective. “This, in hand with professional service firms’ lack of proven tech-enabled sustainability services, has led to users taking smaller, less impactful steps in their sustainable transformations, thus lengthening the time to transform, and increasing resource costs,” added Hojlo.
The importance of collaboration in ESG is evident. Here, Sustainability News looks at 10 such deals which happened in the first half of 2024, from behemoths to startups.
ERM and Workiva
In May, sustainability consultancy ERM announced a strategic partnership with cloud platform Workiva to help provide organisations with real-time data for their ESG disclosure requirements.
The key to the partnership is combining Workiva’s platform, claimed to be the only one which brings financial reporting, ESG and GRC (governance, risk and compliance) together in a ‘secure, controlled, audit-ready’ environment, with ERM’s expertise in helping clients integrate sustainability solutions. Financial reporting teams are feeling increased pressure with regard to sustainability data where they have little industry experience, as a Workiva blog post from 2023 noted.
ERM has put together a string of collaborations in the past 12 months, including with ESG reporting software provider Greenomy, software platform for carbon and sustainability data management Sweep, and ESG data management platform Novata.
EY and IBM
EY and IBM came together in February to announce a further expansion of their collaboration to provide ESG solutions, in the form of an end-to-end managed services offering.
The increasing regulatory landscape, as well as limited use cases, were the key prompts for the partnership. “Too often, organisations are navigating disparate data, systems, and spreadsheets that anchor sustainability in operational data, rather than business-wide transformational insights and progress,” said Amy Brachio, EY global vice chair, sustainability. “Now they can access an organisation-wide view that creates report-ready insights now, while also having the flexibility for evolving with reporting, standards, and how the strategy evolves over time.”
In 2023, the companies extended their partnership with a focus on offering corporate solutions. In October, the pair launched an AI solution designed to help increase productivity and drive efficiencies within HR.
ELTEMATE and Daato
ELTEMATE, the tech brand from global law firm Hogan Lovells, announced in April a strategic partnership with Daato, a provider of ESG compliance solutions.
Daato describes itself as ‘all-in-one sustainability software’, integrating key ESG reporting frameworks with the potential to simplify and automate the data collection process. Not surprisingly, given the sector, pressure around legislative compliance – and finding firms who can bring confidence to this process – are key to this collaboration.
“As a firm, Hogan Lovells is committed to empowering its clients, introducing them to a range of leading cutting-edge technologies, and providing expertise to help them navigate the increasingly complex landscape of sustainability and supply chain risk reporting with increased efficiency,” said Sebastian Lach, partner at Hogan Lovells and co-CEO of ELTEMATE.
Experion Technologies and ESG Playbook
Experion Technologies, a provider of product engineering and digital transformation services for large enterprises and startups, announced a partnership with ESG Playbook in June to provide ‘comprehensive and cutting-edge solutions’ to address the evolving landscape of sustainability, risk management, and regulatory compliance.
The partnership came about through Experion engineering the ESG Playbook end-to-end platform, as well as offering the ability to bring big data onto the platform and incorporate AI. The platform has 10 reporting tools across 11 frameworks, providing services including UI/UX design, product engineering, professional services, and end-to-end testing.
“By marrying their product engineering strengths with a comprehensive platform, Experion is simplifying the path for companies to demonstrate their commitment to responsible and ethical practices, fostering a positive impact on both the environment and their bottom line,” Experion noted.
Fils and Aion
Fils, a technology provider whose API embeds sustainability into digital payment infrastructure, announced a strategic partnership with digital banking solutions provider Aion in April.
The partnership is aimed at financial institutions looking to integrate ESG-focused products seamlessly into services across the Middle East, including ESG scoring systems, sustainable investment platforms, and green financial products.
“By providing tools that empower consumers and businesses to make informed and responsible financial decisions, they are setting a benchmark for the integration of ESG values into the core of financial services,” a statement from Fils noted.
Finastra and TradeSun
Fintech company Finastra announced in April a partnership with TradeSun, a cloud-based finance and supply chain software provider with a focus on automated ESG scoring.
The partnership will see Finastra offer automated ESG scoring across its working capital solution, Trade Innovation. The integration with CoriolisESG by TradeSun – TradeSun having acquired Coriolis, whose trade analytics technology powered its ESG scoring system, in 2022 – will enable users to book and manage trade and supply chain finance with the added benefit of automated insights into ESG scoring.
“Sustainability is a growing imperative in the world of trade and with the continued emergence and development of regulations in this space, organisations must ensure they can measure their impact to help meet the worldwide ESG mandates and understand where risk can be better managed,” said Iain MacLennan, head of trade and supply chain finance at Finastra. “That vision is now possible for users of our Trade Innovation technology.
“Delivering this out-of-the-box integration aligns closely with our company purpose to unlock the power of finance for everyone and our mantra of ‘doing well by doing good’,” added MacLennan.
Global PCCS and Credibl ESG
Global PCCS, an India-based compliance services provider, announced in May a strategic partnership with Credibl ESG, an AI-powered ESG data management software and reporting platform, to enhance sustainability compliance for businesses.
The two companies will offer an integrated suite of services, ranging from regulatory compliance and sustainability reporting, to training and consultancy and innovative technologies.
“This partnership underscores our commitment to supporting businesses in their journey towards sustainability, helping them achieve regulatory compliance while fostering sustainable growth and innovation,” Global PCCS said in a statement.
Northern Trust and Novata
US financial services company Northern Trust has been working with – and investing in – ESG data management platform Novata.
Northern Trust initially announced in November 2023 that it was making Novata’s ESG data management software solution available to Northern Trust asset servicing clients following strategic investment in the company.
Following this, at the beginning of January A-Team Insight reported that Northern Trust was starting the year with newly acquired ESG capabilities, indicating that less than two months after the deal was signed, the process of bedding in Novata’s data management solution into its own offering was well on track.
Stabiliti and Worldline UK&I
Not dissimilar to the Fils and Aion deal, climate fintech software provider Stabiliti announced in June that Worldline UK&I, a provider of payment and transactional services, had become its first go-to-market client and re-seller partner.
Stabiliti’s offering is software embedded into payment systems which match verified carbon offsets to residual micro-emissions from payment transactions. The company is partnering with Worldline UK&I to integrate its technology into mobility and merchant clients’ point of sale. Consumers will have the option to ‘round up’ their transactions at the point of payment to contribute to sustainable projects, including nature-based carbon removal.
Stabiliti, in its own words, is ‘pioneering the use of micro-offsets applied with context, unlocking sustainable capital that can be used to reverse climate change.’ The partnership will look to achieve that, as well as help surpass ESG targets.
Sustainable Square and Arab Federation of Capital Markets
The Arab Federation of Capital Markets (AFCM) and Sustainable Square, a UAE-based firm focusing on ESG, sustainability and climate advisory, signed a memorandum of understanding (MoU) in May to collaborate on initiatives aimed at advancing ESG adoption within the capital markets and listed companies in the Arab countries.
The MoU ‘signifies the mutual interest of both parties in working together towards a common purpose’, Sustainable Square noted. These include ESG, sustainability and climate change thought leadership, as well as capacity building and trainings, and partnership in conferences and webinars.
“We believe this partnership will be a catalyst for positive change, paving the way for a more sustainable Arab world,” said Rami El-Dokany, AFCM secretary general.
