Where We Go Next After NY Climate Week

The 2025 New York climate week spurred discussions. What stood out for us was that everyone’s takeaways were rooted in the context of their own focus and work. This is a good thing since there was something for everyone with over 1,000 events across NYC from Sept 21–28, attracting 100,000+ participants including policymakers, business leaders, NGOs, and activists. Highlights included focus for: 

IT services firms. IT services companies positioned technology as a catalyst for sustainability. Capgemini’s “Resilient Future Forum” showcased how digital transformation and AI can optimize resource allocation, redesign value chains, and embed sustainability into business models. NTT Data’s messaging centered around digital climate solutions and evolving streamlined reporting. The key takeaway was that IT services providers have a ‘strong skin in the game’ and occupy an important corner of the sustainability ecosystem.  

Consultants. Bain stressed integrating sustainability into core business models, citing energy transition challenges like grid modernization and skilled labor shortages. McKinsey focused on scaling climate tech, nature markets (similar to Forrester’s Green Market), and decarbonization through automation and data-driven tools like Catalyst Zero. Our key takeaway was that consulting firms offer key long-term perspective into investment decisions.  

Sustainability management software vendors. Watershed highlighted the shift from sustainability as a compliance task to a business driver. Its summit featured new AI-powered tools for emissions tracking and procurement decisions, alongside case studies from companies like Rivian and Thermo Fisher. The firm argued that climate action increasingly delivers measurable financial returns and unveiled product updates aimed at accelerating decarbonization and supply chain transparency. Sustainability reporting should no longer be a compliance only task was the key takeaway. 

Climate risk analytics software vendors. Climate risk was a core theme for 2025. S&P Global underscored the scale of climate-related financial exposure, projecting $25 trillion in cumulative corporate impacts by 2050. Their sessions focused on physical risk assessment, resilience strategies, and integrating climate risk into investment and credit analysis. MSCI and other vendors also echoed the same key takeaway: physical risk is here and urgent.  

Where do we go from here? 

In past NY Climate Weeks, the discussion focused on climate strategy and corporate sustainability strategies. Now, it’s about putting environmental sustainability initiatives into action and showing business returns.  This year’s NY Climate Week highlighted that all companies need to: 

Evaluate climate risk. Climate risk will rise in prominence as companies try to mitigate losses from climate events. Forrester predicts that the climate risk market will double in size by end of 2026.  Transition risk, which are contextual, highly specific and, by definition, transient, will become more important for companies because it reflects fast-changing policies and market shifts that can directly impact business operations and strategy.  
Continue product carbon calculations and LCA. Leaders overwhelmingly expressed to Forrester the need for more discussions around LCA and PCF calculations as companies struggled to find consistent and accurate methodologies, reliable data sources, and sector-specific guidance. Sustainability management software vendors are answering the call by including these capabilities.   
Assess the true value of AI.  We already see interesting AI capabilities in sustainability management software platforms and climate risk analytics software. The most interesting question about value will center around compliance and security. Should you pay for AI capabilities while also paying a carbon auditor more for assurance? To be continued! 
Invest in renewable energy projects. Global renewable energy deployment is accelerating. However, challenges remain: grid integration, supply chain constraints, and financing gaps. Following Spain’s massive April 2025 power outage, which disrupted critical infrastructure and exposed vulnerabilities in the national grid, companies are now actively evaluating their own renewable energy sources and storage solutions to enhance energy independence and resilience. In 2025, Schneider Electric warned that the world is entering an “energy super cycle” driven by AI, electrification of transport, and industrial growth, which is straining infrastructure. We expect these themes, driven by the energy demands of AI to take center stage in 2026.  

What are your observations? Connect with me to chat more and let us share notes! If you are attending Forrester’s Technology and Innovation Summit, join me in our talk on AI and Data Centers together with Dr. Lin Ning of the University of Texas at Austin and my colleague Alvin Nguyen, where we will discuss the ongoing energy discussions needed for AI innovation in the Data Center.