Channel urged to keep the green flag flying

Those in the channel still banging the drum about their progress to net-zero carbon and success in meeting scientifically backed targets to reduce emissions might be feeling more alone than they did a couple of years ago.

There has been a backlash against sustainability over the past year, largely driven by the agenda of political leaders on the other side of the Atlantic, and the noise around saving the planet has largely gone silent.

“For a moment there, it felt like we had a real paradigm shift on sustainability,” said Ben Caddy, senior analyst at Omdia. “It seemed like companies were taking it seriously. For the first time, we were seeing companies setting appointing chief sustainability officers or even talking about sustainability and marketing. Even in their earnings calls, it was everywhere, but only for a few years, and in the past 12 months, something seems to have changed, and sustainability experienced somewhat of a total system crash.”

Caddy used his slot at the Canalys Channel Forum to cover the recent trends in the market. He acknowledged that even before the current attitude towards sustainability emerged, it had been a real issue that mattered to customers and was important for the channel.

“Everyone was talking sustainability. Investors were obsessed with green bonds and sustainable financing. Regulators were obsessed with disclosures and transparency on carbon emissions and energy. Your own employees were also mindful of the environmental impact that your company has on the planet and on the wider society. But, critically, your customers began to care about sustainability,” he said.

Even before the politicians got involved, the emergence of “greenwashing” diluted the sustainability message, while some of the cynical moves to promote “eco” technology also did damage.

“Everyone wanted a piece of the sustainability pie,” said Caddy. “So, people started to greenwash. They started to talk sustainability without even understanding it and doing it themselves.

“First, we saw hyperscalers pushing the limits of believability with outlandish carbon reduction claims. We saw vendors talking about sustainable hardware revenue. It’s just a new device with an eco label and some recycled packaging. And then we saw some partners talk market sustainability and use this as a promotional thing and a core value.

“All of this greenwashing set sustainability up for a total failure when the pressure finally hit. And in the past 12 months, it’s safe to say that pressure has finally hit.” Caddy added that geopolitical pressure was the main cause of that collapse.

He said there had been “a complete change in sentiment”, with anti-ESG policies spreading from the US across Europe. But despitee that, the analyst house has seen continued optimism around the issue in EMEA partners.

“The EMEA channel is a much more optimistic picture,” he said. “We’re seeing that 42% of channel partners in EMEA told us that you’re more focused on sustainability this year, and it’s a higher priority than it was 12 months ago, and 39% of you are just holding the line. It’s the same level of priority that it was. Why is this? It’s because sustainability is critical to your values, but also critical to your financial resilience as the climate crisis worsens.

“Most importantly, having a credible sustainability strategy and the data to back it up can be a massive deal breaker in terms of your ability to do business of some of your most important, large customers, especially public sector customers.

“Sustainability is still coming up in RFPs. The biggest myth of the year is that everyone stopped caring about sustainability. It’s critical to so many of your biggest customers, and partners do not have the luxury of abandoning sustainability and ESG just because the political pendulum swung the other way.”

Caddy said that the silver lining of the past 12 months is that those dabbling in greenwashing had eased off, so those promoting ESG are genuinely committed to delivering positive change.

“2025 was the year we experienced a total system crash on IT sustainability. But the benefit of that is now we have some clarity. We can see those who are chasing the hype and greenwashing, and we can see those who are really focused on sustainability and who are [continuing], even though it’s tough right now,” he added.

“Still, despite all this hardship, you are the ones who will reach the new era of IT sustainability opportunity, with circular economy, with energy efficiency and infrastructure, digital sustainability. We are entering a new era of IT sustainability. The hype has ended, and it’s time to get the work done,” he concluded.