Global IT Consulting Firm EY Expands Microsoft, SAP Sustainability Engagements

Global IT consulting firm EY has expanded its technology and sustainability partnerships with cloud and enterprise software providers Microsoft and SAP, respectively.

The EY-SAP relationship involves an "expanded alliance" to "help organizations accelerate value-led sustainability action. Teams of EY professionals are advising SAP and customers on the core design and blueprint of the next generation of software solutions to create more impactful climate, nature and social impact strategies," the two companies said.

EY and SAP Sustainability Software Deployments

Not by coincidence, the customer engagements involve such software platforms as the SAP Sustainability Control Tower solution; SAP S/4Hana Cloud; carbon accounting and green ledger concepts; and SAP's Responsible Design and Production Solutions.

In a prepared statement about the partnership, EY Global Senior Advisor Steve Varley said: “Organizations need to shift from talking about pledges and promises to showcasing evidence of what they have achieved, actions taken and progress. Leveraging accurate and comparable sustainability data, at the same level as financial data, can help accomplish this. This expanded alliance will allow both EY and SAP to provide clients with services, capabilities and technology needed to create and protect value.”

Added Gunther Rothermel, co-general manager and chief product officer for SAP Sustainability: "Together, SAP and EY can achieve even greater market and planetary impact by working together on a joint sustainability ambition. Customers want the ability to track sustainability metrics the same way they do financial data, and we’re focused on helping them do that. Leveraging our already strong collaboration, we will help customers advance their sustainability journey by embedding sustainability data into business processes and decisions.”

In addition, the EY organization and SAP plan to continue go-to-market activity to support SAP S/4HANA, the RISE with SAP solution and the GROW with SAP solution with sustainability use cases and accelerators, the two firms said.

EY and Microsoft Partnership: Green Skills Training

Separately, EY and Microsoft have launched the Green Skills Passport program which helps "learners aged 16 and over develop skills to find green jobs and pursue opportunities in the growing green economy," the two companies said.

The free online program is part of an ongoing social impact collaboration focused on sustainability, science, technology, engineering and mathematics (STEM) and upskilling for young people, the two companies added.

The effort includes a 10-hour virtual course, which allows participants to work at their own pace and learn about key topics such as sustainability, entrepreneurship and skills for employment.

A Green Skills Passport pilot program -- launched in the United States, India and Bangladesh -- has delivered the following results for participants:

• More than 1,400 course completions and certificates awarded.
• 61% plan to apply for green jobs.
• 43% plan to enroll in a university degree in sustainability or take more related classes.

The Green Skills Training effort sounds somewhat similar to the Goodwill Clean Tech Accelerator from Goodwill Industries International and Accenture. The accelerator will "teach employability and technical skills for jobs involving solar and storage, electric vehicle charging, heat pumps and energy efficiency," the two companies said.

Green Skills Training: Executive Perspectives

In a prepared statement about the effort, Andy Baldwin, EY global managing partner, client service, said: "The collaboration between EY and Microsoft extends beyond a traditional alliance, showcasing our shared dedication to generating social impact. These programs are a testament of our desire to continue equipping young individuals with the skills they need to succeed in a rapidly changing world."

Added Jean-Philippe Courtois, EVP and president, National Transformation Partnerships at Microsoft: "We're proud to continue growing our collaboration with EY to offer these unique programs that bridge the gap between education and employability. Through these programs, we are taking steps toward social equity and empowering leaders of the future.”

EY, Microsoft and SAP: Additional Sustainability and Green IT Services Efforts

EY, Microsoft and SAP each have built key sustainability partnerships in 2023. Noteworthy relationships and milestones include:

• September 2023: SAP SE and BT Group partnered to show how carbon accounting could be standardized. The effort involves a SAP Sustainability Data Exchange (SDX) pilot program, which allowed BT Group to collect, trace and share carbon data across its own supplier base. 
• September 2023: SAP hired JetBlue and Cognizant veteran Sophia Leonora Mendelsohn as chief sustainability and commercial officer, and co-general manager of SAP Sustainability.
• March 2023: EY and IBM partnered to assist customers with sustainability strategies in such carbon-heavy industries as civil infrastructure, telecom, energy, mobility and manufacturing.
• February 2023: EY acquired Attalea Partners, a provider of ESG consulting services to private equity funds and investee companies.

Meanwhile, Microsoft's overall sustainability and green IT partner strategy is outlined here.

Global IT Consulting Firms Expand Sustainability Services

EY certainly faces healthy competition in the sustainability consulting market. Key rivals such as Accenture, Capgemini, Deloitte, KPMG and PwC each offer various green IT consulting, custom software and associated managed services.

Why all the competition? The simple answer involves strong, growing customer demand.

For instance, global spending on sustainability business services will reach $65 billion in 2027, up from $37.7 billion in 2023, according to an IDC market forecast. That's a 14.9% CAGR (compound annual growth rate) during the forecast period, IDC said.

Moreover, the green technology and sustainability market is expected to reach $51.09 billion by 2029, up from $13.76 billion in 2022, according to Fortune Business Insights. That’s a compound annual growth rate (CAGR) of 20.6%.