Navigating the growing importance of ESG in technology sector RFPs 

“ESG is no longer a differentiator in tech RFPs — it’s an expectation. Proactive integration is now essential for winning business.”

Environmental, Social and Governance (ESG) considerations have become a cornerstone of corporate strategy, particularly in the technology sector where innovation intersects with sustainability and ethical governance. As Requests for Proposals (RFPs) increasingly emphasise ESG criteria, technology companies must adapt to meet these expectations to remain competitive. This article explores the key ESG-related asks in RFPs, industry trends, effective response strategies, proactive measures and the interplay between jurisdictional ESG regulations and RFP requirements.

Key ESG asks in technology sector RFPs

RFPs in the technology sector are placing greater emphasis on ESG performance as clients seek partners aligned with their sustainability and ethical goals. Common ESG-related asks include:

• Environmental metrics: Clients demand transparency on carbon emissions (Scope 1, 2 and 3), energy efficiency and renewable energy usage. RFPs often require detailed plans for reducing environmental impact, such as achieving net-zero emissions or implementing circular economy practices for hardware lifecycle management. Clients also often require alignment with frameworks like the Task Force on Climate-related Financial Disclosures (TCFD).
• Social responsibility: RFPs frequently request evidence of diversity, equity and inclusion (DEI) policies, fair labour practices and community engagement. Clients may ask for data on workforce diversity, employee wellbeing programmes and supply chain labour standards.
• Governance standards: Strong corporate governance is critical, with RFPs seeking disclosures on board composition, anti-corruption policies, data privacy, cybersecurity measures and compliance with ethical business practices.
• Supply chain sustainability: Technology firms are expected to demonstrate responsible sourcing of materials such as conflict-free minerals, and ESG compliance across their supply chains.

Read our factsheet about data collection through the supply chain to learn more.

• Innovation for sustainability: RFPs may ask for evidence of how a company’s products or services contribute to sustainability, such as energy-efficient software solutions or AI-driven tools for environmental monitoring.

These asks reflect a shift towards evaluating vendors not only on technical capabilities but also on their commitment to sustainable and ethical practices.

Industry trends driving ESG in RFPs

Several trends are shaping the growing weight of ESG in technology sector RFPs:

• Regulatory pressure: Global ESG regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and California’s Climate Accountability Package are pushing companies to standardise ESG disclosures. These regulations influence RFPs as clients seek partners compliant with these laws or overarching frameworks like the International Financial Reporting Standards (IFRS) S1 and S2.

Our guide explains how to tackle sustainability reporting, including the CSRD, in today’s uncertain regulatory landscape. Download below!

• Investor expectations: Institutional investors, holding significant stakes in technology firms, are prioritising ESG performance. This trend trickles down to RFPs as clients align procurement with investor-driven sustainability goals.
• Stakeholder demand: Customers, employees and communities are increasingly vocal about sustainability, prompting companies to embed ESG into their value propositions. RFPs reflect this by requiring detailed ESG performance metrics and strategies.
• Technology-specific challenges: The technology sector faces unique ESG challenges, such as high energy consumption in data centres and e-waste from hardware. RFPs are increasingly asking for solutions to these issues, such as renewable energy-powered data centres or recycling programmes.
• Framework consolidation: The alignment of frameworks like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and IFRS is creating a more standardised ESG reporting landscape, influencing RFP expectations for consistent and comparable disclosures.

These trends underscore the need for technology companies to integrate ESG into their core strategies to meet RFP demands effectively.

Effective strategies for responding to ESG in RFPs

To respond effectively to ESG-focused RFPs, technology companies should adopt a structured strategy:

1. Conduct a gap analysis 

Assess current ESG performance against RFP requirements. Identify strengths, such as existing sustainability certifications, and weaknesses, such as incomplete Scope 3 emissions data, to prioritise improvements. 

2. Leverage ESG frameworks

Align responses with recognised frameworks like IFRS S1/S2, GRI, or SASB. Use these standards to structure disclosures, ensuring clarity and comparability. For example, reference SASB’s industry-specific metrics for technology to highlight material ESG factors. 

3. Provide quantifiable metrics

Clients value data-driven responses. Include metrics like carbon footprint reductions, percentage of renewable energy used, or DEI statistics. Use tools like ESG software to automate data collection and ensure accuracy. 

4. Highlight strategic integration

Demonstrate how ESG is embedded in corporate strategy, such as through sustainability-focused R&D or ethical AI governance. Showcase initiatives like green software development or partnerships for sustainable supply chains, where applicable.  

5. Tailor responses to client needs

Customise RFP responses to address the client’s specific ESG priorities, such as emphasising data privacy for a financial services client or
e-waste management for a hardware-focused RFP. 

6. Engage expert support

Partner with ESG consultants to enhance response quality. Consultants can provide expertise on compliance, data verification, and storytelling to make responses compelling. 

Proactive measures in anticipation of ESG Trends

To stay ahead of ESG-driven RFP requirements, technology companies should take proactive steps:

• Invest in data infrastructure: Implement ESG reporting software to streamline data collection and ensure auditability. As most RFPs require frequent performance reporting, tools can help automate data collection for the selected KPIs per the reporting period.
• Strengthen supply chain oversight: Conduct regular ESG audits of suppliers to ensure compliance with environmental and labour standards. Develop policies for responsible sourcing of materials like rare earth metals.
• Upskill teams: Train procurement, R&D and leadership teams on ESG principles and reporting standards. This ensures cross-functional alignment and enhances RFP response quality.
• Innovate for sustainability: Invest in R&D for energy-efficient technologies such as sustainable cloud solutions to differentiate in RFPs. Highlight these innovations as competitive advantages.
• Monitor regulatory developments: Stay informed about evolving regulations like the CSRD or jurisdictional laws (like California SB-261 or SB-253), which may influence future RFP requirements. Engage with industry groups to anticipate changes.
• Build stakeholder trust: Communicate ESG commitments transparently through sustainability reports and stakeholder engagement. This builds credibility for future RFPs.

By anticipating trends, companies can position themselves as ESG leaders, enhancing their appeal in competitive bids.

The growing emphasis on ESG in technology sector RFPs reflects a broader shift towards sustainability and ethical business practices. By understanding key RFP asks, aligning with industry trends, adopting a strategic response process, acting proactively and leveraging compliance with regulations like IFRS, technology companies can navigate this landscape effectively. Those that integrate ESG into their core operations and communicate their commitments compellingly will not only meet RFP demands but also gain a competitive edge in a sustainability-driven market.

How can we support?

Nexio Projects is a leading sustainability consultancy with deep industry expertise across more than 25 sectors — including the fast-evolving technology sector. As a global EcoVadis strategic partner since 2018, we have supported over 400 clients in navigating complex ESG requirements, regulatory frameworks, sustainability ratings and climate topics such as decarbonisation strategy. Our team combines technical rigour with practical insight to help technology companies meet increasing ESG demands and drive meaningful climate action.

For further questions and support, you can contact us for a free consultation.

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