Businesses being good for the town or city around them and for their employees is not a new idea. Plenty of great channel businesses have been doing just that for decades, but there are plenty of new ideas for ensuring your business has environment, social and governance (ESG) policies that will stand the test of time.
What’s more, being able to demonstrate your ESG credentials is increasingly important for those seeking new business, with a number of RFPs now asking questions of suppliers. As such, channel companies must ensure they have the right policies in place that will ensure they are sustainable, comply with the latest standards, and continue to meet ever-growing customer and employee expectations.
“ESG is no longer a side conversation in the Channel,” explained Phil Alton, sales director, Node4. “It is increasingly built into procurement frameworks, especially across councils and government bodies, where suppliers are being asked to demonstrate clear environmental, social and governance credentials.
“ESG needs to align with cost efficiency as well as carbon reduction. Smarter infrastructure choices, workload optimisation and modernised hosting strategies can reduce energy consumption and operating costs at the same time. In other words, sustainable technology, when done properly, is often simply efficient technology.”
“Expectations have shifted from ambition to evidence,” explained Laura Mozden, global head of ESG, Westcon-Comstor. “Customers and partners now want clear, comparable data that demonstrates real progress, particularly around carbon reduction and supply chain transparency, as ESG requirements become a standard part of RFPs.
“At the same time, employees increasingly expect their employer to act responsibly, align with their values and give them a role to play in sustainability efforts. That’s why we’re investing in data-led approaches that make ESG measurable, credible and actionable for everyone involved.”
Rising expectations
One big shift in recent years has been rising expectations from customers, partners and employees around ESG. “Both customers and employees are becoming far more discerning,” commented Callum Lydon, sustainability reporting and data manager, Gamma.
“Customers increasingly expect telecoms providers and channel partners to demonstrate credible carbon reduction, not just ambitions. They want clarity on emissions, energy efficiency and the environmental footprint of products and services, particularly as ESG requirements flow down from larger enterprise and public-sector clients.
“Employees, meanwhile, expect purpose as well as performance. They want to work for organisations that take net-zero commitments seriously, operate responsibly across their supply chains, and are transparent about progress and challenges. For both groups, evidence matters. Clear targets, progress updates and honest reporting are replacing high-level ESG statements.”
This is leading to some stakeholders wanting to see measurable evidence of ESG efforts. “Public sector partners want to see clear carbon plans, recognised standards and measurable social value,” said Claire Davies, people and culture director, ITS. “ESG performance is increasingly part of how organisations are assessed when contracts are awarded.
“Employees are just as focused. In technology, where higher representation gaps remain, people expect to see real progress on recruitment, retention and progression. “Equity, diversity, and Inclusion cannot sit on the sidelines. It needs to be visible in leadership behaviour and career pathways.”
Alton, from Node4, added, “Public sector organisations now expect transparency around emissions reporting, data protection standards and social value contributions. They want to know how suppliers are reducing environmental impact, supporting communities and maintaining strong governance controls. Employees expect the same clarity. They want to work for organisations that demonstrate inclusion, community engagement and responsible decision making, not just publish policy documents.”
The right ESG policies can benefit both sides. Jess Henry, chief of staff, Digital Space, explained, “ESG is a practical step to minimise disruption and control costs. When we modernise legacy infrastructure, working with energy efficient data centre partners and designing solutions that genuinely help customers lower consumption, there is both a performance gain and a sustainability gain.
“Social responsibility is equally important when we operate in a such a people-led industry. Investing in skills, supporting apprenticeships, creating inclusive career pathways and contributing to local communities are not peripheral activities.
“They are part of building a resilient business. Our customers expect their technology partner to act responsibly. Our employees expect to work for a brand that reflects their values.”
Cherie Howlett, CMO, Jola, added, “End users increasingly expect partners to deliver value beyond price, including solutions that reduce waste. Employees want to work for organisations with purpose, innovation and impact.
“Our focus is on solutions that reduce deployment emissions, such as zero-touch provisioning, and technology that enables broader social value reflects these evolving expectations.”
Finding meaning
Building an ESG strategy that will stand the test of time often means linking the strategy to an organisation’s own ambitions. As such, it can be important for the ESG policy to resonate across all business activities.
“ESG is about building a responsible, resilient business that creates long-term value for our partners, vendors and people,” explained Mozden, from Westcon-Comstor. “It brings together how we reduce our environmental impact, how we support and develop our people and communities, and how we govern our business with transparency and integrity.
“Crucially, ESG isn’t a standalone initiative for us, it’s embedded across our global operations, supply chain and partner ecosystem, and increasingly underpins how we do business in the Channel.”
That perspective chimed with the view of Davies, from ITS. She said, “We have integrated ESG into how we run our business. As we have expanded, we formalised our approach, moving from standalone CSR activity to a structured framework because sustainability, inclusion and strong governance directly influence performance, risk management and long-term success. ESG shapes our decision-making across the organisation, from supplier relationships and operational delivery to workforce development and performance tracking.”
Davies added that ESG is led from the top and embedded across ITS. She explained, “ESG influences how we manage risk, uphold standards and scale responsibly. In this way, governance, sustainability and inclusion reinforce performance rather than sit alongside it. As we continue to grow, these disciplines strengthen our business and support long-term resilience.”
For Gamma’s Lydon, ESG is woven across the business. He explained, “ESG is about focusing on socially responsible issues that matter to our employees, customers, partners or investors. Environmentally, that means addressing the carbon and energy intensity of networks, data centres and devices, and having a credible pathway to net-zero that includes our value chain.
“Socially, it’s about responsible connectivity, digital equity and equality. We strive to be an employer that attracts and retains skilled people. On governance, ESG is about transparency, accountability and robust reporting, ensuring that sustainability commitments are backed by measurable actions and verifiable data. In short, ESG to Gamma is not a parallel agenda, it is embedded into who we are and how we run the business.”
Designing a strategy
So, how can channel companies design and implement a comprehensive and effective ESG strategy? For Gamma’s Lydon, the starting point is materiality. He explained, “Channel companies should identify the ESG issues that genuinely matter to their business model, stakeholders and customers, rather than trying to address everything at once.
“From there, it’s essential to set clear, time-bound targets, particularly around carbon reduction and net-zero, supported by reliable baseline data across Scope 1, 2 and relevant Scope 3 emissions. Circularity should be built into operations by extending asset lifecycles, promoting refurbishment and reuse, and improving the management of electronic waste.”
Lydon emphasised the importance of reporting on efforts. He said, “Effective ESG strategies depend on transparent reporting, using recognised frameworks, tracking performance consistently, and integrating ESG into governance and decision-making rather than treating it as a standalone initiative.”
Another starting point could be to identify your biggest risks and impacts, and to then plot the strategy from there. “The most effective ESG strategies are pragmatic, data driven and closely aligned to the core business,” said Mozden, from Westcon-Comstor. “For channel companies, that starts with understanding where your biggest impacts and risks sit – across operations, logistics and the wider value chain – and setting clear, science-based targets.
“Reliable data is essential, whether that’s energy use, emissions or supplier information, because it enables informed decisions and continuous improvement. Just as importantly, ESG needs senior sponsorship and cross functional ownership to ensure it is embedded day to day, not treated as a reporting or box-ticking exercise.”
Davies, from ITS, also highlighted the significance of the leadership team buying into the strategy. She said, “Effective ESG starts with leadership. It requires board-level backing and clear accountability. At ITS, we formalised our framework, appointed dedicated ESG leadership and created cross-functional responsibility so it is ‘lived’ by everyone, and informs real business decisions.
“It also needs to be embedded into core strategy. EDI, for example, should influence recruitment, progression, supplier standards and leadership development rather than sit separately from them. Measurement is equally important. We use dashboards to track social value delivery and staff volunteering, and our Carbon Reduction Plan to guide environmental performance. Clear data keeps ESG practical and measurable.”
Howlett, from Jola, added, “Start by clearly prioritising measurable environmental and social outcomes that align with your business strengths, for example, reducing packaging and transport waste, supporting digital inclusion, and delivering secure, resilient connectivity.”
One big shift in recent years is the attention to detail from customers, so building a policy that helps you answer all questions is essential. “What has changed most in the past two years is the level of scrutiny,” said Henry, from Digital Space. “RFPs now routinely ask about carbon reduction plans, supply chain transparency, diversity metrics and cyber governance. Procurement teams now ask for evidence, not statements, and customers want to understand not just what you say, but how you measure progress.”
Aligning with suppliers
One challenge for channel companies is the complex nature of many supply chains, so it can be difficult to assess or understand whether suppliers share the same ESG standards. But demonstrating efforts in this area are increasingly important for customers, particularly in the public sector.
“Supply chain alignment is becoming increasingly important,” said Alton, from Node4. “Councils expect prime contractors to take responsibility for their suppliers’ standards. That means formal ESG assessments, clear contractual expectations, and ongoing collaboration to improve reporting and performance. Consolidating platforms and reducing unnecessary duplication can also lower environmental impact while simplifying service delivery.”
Mozden, from Westcon-Comstor, added, “Supply chains are critical to ESG success in the Channel. Companies need clear expectations, consistent standards and open collaboration with suppliers and partners, rather than a purely compliance-driven approach.
“We focus on transparency, data sharing and encouraging partners to set their own science-based targets, because progress at scale only happens when everyone moves together. Building ESG into supplier engagement helps reduce risk, meet customer expectations and strengthen long-term relationships across the ecosystem.”
Transparency is often the overriding objective here. Lydon, from Gamma, said, “Supply chain engagement is critical, especially given the importance of Scope 3 emissions in telecoms. Companies need to clearly define ESG expectations through supplier codes of conduct, contractual requirements and onboarding processes.
“However, alignment goes beyond compliance. It involves working collaboratively with suppliers to improve data quality, support emissions reduction initiatives and encourage circular practices such as take-back schemes and product refurbishment.
“Transparency is key, asking suppliers to disclose emissions and ESG data using recognised standards, and prioritising long-term partnerships with those that demonstrate credible progress rather than relying on high-level commitments.”
Looking ahead
As with everything in life, ESG best practices and policies will continue to evolve in the years ahead. “Looking ahead to 2026 and beyond, I expect three themes to dominate,” said Henry, from Digital Space. “Greater transparency around Scope 3 emissions. Increased scrutiny of energy use as AI workloads grow, and a stronger link between cyber resilience and ESG governance.
“Ultimately, ESG is about trust. Businesses want partners that are secure, sustainable and accountable. Those that treat ESG as a strategic discipline rather than a compliance task will be better positioned to grow.”
There could also be further regulations as the government looks to ensure businesses are reducing their environmental impact. “Looking ahead, regulatory scrutiny and reporting requirements will continue to intensify, making transparency and data accuracy non-negotiable,” said Lydon, from Gamma. “Net-zero strategies will also come under closer examination, particularly the treatment of Scope 1 and 2 emissions and the credibility of transition plans in the run-up to 2030.
“Circularity will move higher up the agenda as businesses are expected to demonstrate tangible reductions in resource use, waste and device turnover. In addition, digital responsibility, including data governance, resilience and the social impact of connectivity, will likely gain prominence. For channel companies, the key priority will be moving from aspiration to execution, supported by robust data, clear governance and honest reporting.”
Regulations could become tied to data quality, with organisations compelled to substantiate their reporting. “Regulation and data quality will be two interlinked focus areas,” said Mozden, from Westcon-Comstor. “Requirements such as double materiality assessments and more detailed sustainability reporting mean companies must be confident in their data and methodologies. There will also be increased scrutiny on supply chain emissions and how organisations support partners in reducing them.
“More broadly, ESG will continue to shift from a reporting obligation to a commercial differentiator, with sustainability, governance and social impact playing a growing role in purchasing decisions, talent attraction and long-term competitiveness in the Channel.”
Davies, from ITS, also expects data quality to be put under the microscope. She added, “There is also greater emphasis on the quality of reporting. Social value must be measurable, carbon plans need to be meaningful, and governance processes need to be clear and consistently applied. The focus is firmly on delivery.
“Inclusion remains equally important. In technology, improving representation cannot rely on recruitment alone. It requires sustained effort, through education partnerships, outreach and internal initiatives such as our Women in ITS programme, to ensure more people feel confident entering the sector and are supported to progress once they are here.”
Putting the right policies in place will help companies thrive in the future. Jola’s Howlett added, “Companies should consider the carbon impact across digital services and connected devices, responsible supply chain practices, data security, and the ethical use of technology.
“As ESG expectations evolve, companies that fail to take proactive steps, such as celebrating cultural diversity, offering real flexibility and supporting mental health, risk falling behind and losing both talent and customers.”
This feature was included in our April 2026 print issue. You can read the magazine in full here.
