TECH SUPPLIER Sep 2022 - IDC Survey Spotlight - Doc # US49693122

Which SaaS Application Categories Lead in ESG Investment?


Frank Della Rosa

This IDC Survey Spotlight examines the SaaS application categories that lead in ESG investment. Organizations face increasing pressure to show results from efforts to reduce carbon emissions. Sustainability has become a key driver of business performance. Companies increasingly rely on SaaS applications and systems of record, including supply chain management (SCM) and enterprise resource planning (ERP), to address challenges related to aggregating enormous amounts of segregated internal and third-party data. Investors and customers seek evidence that the businesses they engage with are investing in initiatives that will help the business meet evolving environmental, social, and governance (ESG) requirements. SaaS businesses continue to acquire and expand application functionality to make it easier for customers to aggregate, analyze, and report on sustainability performance. According to IDC's SaaSPath global research, the benefits accruing to businesses investing in ESG initiatives include productivity improvements (42.8%), increased profitability (38.9%), reduced costs (38.4%), enhanced brand value (32.3%), and innovation (30.3%).


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