Revenue Risk and Opportunity Assessment for Changing ESG Requirements from Key Accounts / Buyers in Europe

The client grappled with the diversity of ESG objectives and focused product segments across European markets, leading to difficulties in understanding how evolving criteria would impact market share.

There was a need for comprehensive policy mapping and evaluation criteria identification to form effective differentiation strategies.

Vamstar leveraged proprietary Generative AI to identify and map relevant clauses in tenders, extracting policy frameworks, evaluation criteria (mandatory vs. value-adding), and product-specific requirements.

With data analytics, Vamstar classified ESG requirements into mandatory vs. value-adding, product-specific, and regional requirements.

A clean, structured master dataset was created to evaluate tenders where the client participated (297) and relevant tenders they abstained from (136).

Vamstar’s comprehensive assessment highlighted key risks and opportunities associated with changing ESG requirements:

• 18% of the client’s revenue is at risk due to mandatory environmental clauses, particularly in the Nordics.
• 11% of tenders offer differentiation opportunities.
• Key accounts are poised to escalate their ESG requirements, necessitating compliance adjustments to protect revenue streams.

These insights prompted the client to prioritise key account compliance with ESG criteria, addressing market segments at high risk and potential growth opportunities.

The Vamstar study enabled the client to segment current and prospective revenue streams effectively, identifying where high-risk and high-potential ESG requirements could affect the business. With Nordic markets facing immediate impact, the client is proactively improving ESG compliance to meet the evolving criteria and is now well-positioned to capture new opportunities in other European markets. Vamstar’s AI-based data extraction and analysis helped the client anticipate future trends and align compliance with key accounts to maintain and grow their market presence.