Alight, Inc. (ALIT): PESTLE Analysis [Nov-2025 Updated]

You need to know exactly where Alight, Inc. (ALIT) stands as the macro-economic picture shifts, and honestly, it's a mixed bag right now. The company is fighting cautious client spending-which led to a significant $1.3 billion non-cash goodwill impairment charge in Q3 2025-even as they project full-year revenue between $2.25 billion and $2.28 billion. But the real story is how they're using technology: a massive push into Artificial Intelligence (AI) and the Business Process as a Service (BPaaS) model is their shield against political uncertainty (like the expiring Affordable Care Act subsidies) and the rising legal complexity of the SECURE 2.0 Act. This PESTLE breakdown shows you the clear risks and the big opportunities driving their strategy.

Alight, Inc. (ALIT) - PESTLE Analysis: Political factors

You're operating a business like Alight, Inc. (ALIT) right now, which means you're neck-deep in US regulatory uncertainty. The political landscape is not just about who holds power; it's about the immediate, tangible changes to benefits law and healthcare costs that directly impact your enterprise clients and their employees. We need to map this near-term risk and opportunity to clear actions, because policy shifts translate directly into demand for your compliance and administration services.

New US administration's regulatory freeze creates policy uncertainty for benefits laws

The new administration's immediate action on January 20, 2025, was to issue a regulatory freeze, which is standard but still creates significant policy uncertainty. This order mandates that executive departments and agencies, including those governing employee benefits and health law, must pause or delay any new rules and guidance that haven't yet taken effect. For a company that specializes in administering complex laws like the Employee Retirement Income Security Act (ERISA) or new Department of Labor (DOL) rules, this pause is a double-edged sword.

The immediate effect is a slowdown in new compliance requirements, offering a temporary reprieve. But, it also means a backlog of potential rules-like those concerning fiduciary standards or data privacy-are now in limbo. This regulatory holding pattern forces your clients to plan for multiple scenarios, which increases their need for Alight, Inc.'s expert advisory and technology services. Your core competency is managing this exact kind of legal complexity. It's a risk of delay, but also a defintely a sales opportunity for compliance consulting.

Expiration of enhanced Affordable Care Act (ACA) subsidies on December 31, 2025, risks health coverage stability

The most critical near-term political risk is the scheduled expiration of the enhanced Affordable Care Act (ACA) premium tax credits on December 31, 2025. This isn't a theoretical policy debate; it's a financial cliff for millions of Americans who rely on the ACA Marketplace, and it will destabilize the entire health coverage ecosystem that Alight, Inc. supports.

The numbers here are stark and demand attention. If Congress fails to act, the cost of coverage will more than double for subsidized enrollees. Here's the quick math:

Metric	2025 (With Enhanced Subsidies)	2026 (If Subsidies Expire)	Change
Average Annual Premium Payment for Subsidized Enrollee	$888	$1,904	+114%
Projected People Losing Marketplace Coverage (CBO Estimate)	-	Roughly 4 million	-
Total Marketplace Enrollment (2025)	Over 24 million	-	-

The expiration will lead to coverage churn (people cycling in and out of insurance) and an increase in the uninsured population, which puts pressure on employer-sponsored plans and drives demand for flexible, cost-management solutions-a prime area for Alight, Inc.'s benefits administration platform.

Congressional focus on lowering healthcare costs drives bipartisan support for price transparency and PBM reform

There is a rare, strong bipartisan consensus in Congress focused on reducing healthcare costs, specifically targeting the opaque practices of Pharmacy Benefit Managers (PBMs). This legislative drive is a significant factor for Alight, Inc., as PBMs are a key part of the prescription drug supply chain your clients manage.

Multiple bills, including the PBM Reform Act introduced in July 2025, aim to force transparency and eliminate practices like spread pricing (where the PBM pockets the difference between what they charge the plan and what they pay the pharmacy). The pressure is intense because three PBMs control nearly 80% of U.S. prescription drug claims. This political action is a direct opportunity for Alight, Inc. to position its technology as the solution that helps employers implement the required transparency and ensure a 100% pass-through of manufacturer rebates to their health plans.

• Mandate full transparency of PBM financial arrangements.
• Ban spread pricing in government programs like Medicaid.
• Require 100% pass-through of rebates to plan sponsors.

The legislative intent is clear: lower costs for the 160 million-plus Americans with employer-sponsored coverage. This means your clients will need new tools to manage their drug spend, which is a clear opportunity for your Worklife platform.

Proposal to declassify the Board of Directors in 2026 aligns with evolving corporate governance best practices

Alight, Inc.'s Board of Directors has unanimously approved seeking stockholder approval to declassify the board at the 2026 annual meeting. This is a political factor within the corporate governance realm, aligning the company with evolving best practices favored by institutional investors like BlackRock and others who prioritize director accountability.

The current structure is a classified board, where directors serve staggered three-year terms in three separate classes. If the proposal is approved, directors elected starting at the 2027 annual meeting will serve annual, one-year terms. This move is a direct response to stockholder feedback and is a positive signal for governance, but it also increases the political pressure on the board to perform, especially given the company's recent performance. The company's adjusted Earnings Per Share (EPS) guidance for the 2025 fiscal year was recently cut to a range of $0.54 to $0.58, down from an earlier range of $0.58 to $0.64. The board needs to show shareholders that this governance change is paired with a clear strategy for improved financial results.

Alight, Inc. (ALIT) - PESTLE Analysis: Economic factors

Full-year 2025 Revenue is Projected Between $2.25 Billion and $2.28 Billion, a Downward Revision

You're looking for stability in a volatile market, but Alight, Inc.'s recent guidance shows the economic headwinds are real. The company has revised its full-year 2025 revenue forecast downward to a range of $2.25 billion to $2.28 billion (or $2,252 million to $2,282 million), which is a clear signal of moderated top-line expectations. This projection is a slide from the earlier, more optimistic range of $2.28 billion to $2.33 billion. Honestly, a downward revision like this reflects a broader economic caution among their client base, which is something every investor needs to factor into their models.

Adjusted EBITDA is Forecast at $595 Million to $620 Million, Showing Margin Expansion from Cost Savings

Despite the revenue pressure, the operational story is a bit better. Alight's management expects Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to land between $595 million and $620 million for the full year 2025. This is also a revision from the previous forecast of $620 million to $645 million, but the key takeaway here is the margin expansion. The company's focus on operational efficiencies, especially through AI and automation investments, is helping them deliver more profit from each dollar of revenue. That's a strong sign of management controlling the controllables, even when the macro environment isn't cooperating. Here's the quick math on the operational side:

Metric	Full-Year 2025 Guidance	Context
Revenue	$2.25 billion to $2.28 billion	Downward revision from prior forecast.
Adjusted EBITDA	$595 million to $620 million	Reflects margin improvement from efficiency gains.
Free Cash Flow	$225 million to $250 million	Critical for debt management and share repurchases.

Cautious Client Sentiment is Driving a Decline in Non-Recurring Project Revenue, Impacting Top-Line Growth

The biggest near-term risk is the cautious client sentiment, and you see it most clearly in non-recurring project revenue. This is the discretionary, high-margin work-things like large-scale system implementations or one-off consulting. In the third quarter of 2025 alone, non-recurring project revenues were down 14%, or $7 million. When economic uncertainty rises, companies defer these projects first, so this decline is a direct measure of client hesitancy. The company is seeing deals take longer to close, which is temporarily delaying planned growth. This suggests that while recurring revenue remains stable (it was 91.7% of total revenue in Q3 2025), the growth engine is sputtering a bit.

• Non-recurring project revenue is a defintely a leading indicator of client caution.
• The decline is a direct result of companies tightening their belts on discretionary IT spending.
• New deal closures are taking longer in the current environment.

The Company Incurred a Significant Non-Cash Goodwill Impairment Charge of Approximately $1.3 Billion in Q3 2025

This is the elephant in the room. In the third quarter of 2025, Alight recognized a massive non-cash goodwill impairment charge of approximately $1.338 billion. A goodwill impairment is an accounting write-down of the value of past acquisitions, and it's triggered when the fair value of an acquired business drops below its carrying value on the balance sheet. What this estimate hides is the fact that this charge reflects a significant adjustment to the expected future cash flows from those acquired assets, driven by current business trends and a change in the company's market valuation. While non-cash, meaning it doesn't impact day-to-day operations or cash flow, it resulted in a net loss of $1.055 billion for the quarter, and it's a major red flag about the value generated from their acquisition strategy.

Alight, Inc. (ALIT) - PESTLE Analysis: Social factors

You're looking at Alight, Inc. (ALIT) and trying to map the social shifts that will drive revenue, and honestly, the picture is clear: the modern employee is demanding a unified, personalized experience, and they are willing to switch employers for it. This isn't just about benefits; it's about a digital-first, empathetic benefits ecosystem (health, wealth, mental health) that directly addresses the new realities of work in 2025. Alight's core strength is its massive scale and its platform's ability to personalize this complex landscape.

Strong market demand for integrated employee wellbeing solutions (health, wealth, mental health)

The market for employee wellbeing solutions is booming, confirming that employers now view holistic support as a strategic imperative, not a perk. The global market is estimated at $15 billion in 2025, and it's projected to expand at a Compound Annual Growth Rate (CAGR) of 12% through 2033. This growth is fueled by a direct correlation between support and employee outcomes: Alight's 2025 Employee Mindset Study found that 62% of fully supported employees rate their overall wellbeing highly, a significant 17-point increase over those without comprehensive support.

Employers are responding by increasing their investment. In 2025, 72% of employers cite employee well-being as a top strategic priority, and 74% of organizations plan to increase wellness spending. The demand is shifting to integrated platforms that cover all aspects of life, including financial wellness, which is a key area of anxiety for employees. For instance, 44% of employees want access to financial wellness education like debt management or budgeting. The complexity of new treatments, such as the 32% of employees who received a prescription for GLP-1 medications in 2025, also necessitates expert navigation. You need a single pane of glass for all this, or employees get lost.

Wellbeing Focus Area (2025)	Supporting Data/Metric	Implication for Alight
Market Value	Global market estimated at $15 billion in 2025	Large, rapidly growing addressable market.
Employer Priority	72% of employers cite wellbeing as a top strategic priority	High willingness to spend on integrated solutions.
Employee Engagement	62% of fully supported employees rate wellbeing highly (+17 points)	Platform's value proposition is validated by employee outcomes.
Financial Wellness Demand	44% of employees want financial wellness education	Need for integrated wealth and financial planning tools.

Alight Worklife platform serves over 35 million people and dependents, emphasizing scale and user experience

Alight's competitive moat is its sheer scale. The company serves over 35 million people and dependents, making it a critical intermediary between employers and the US workforce. This massive user base provides a unique data advantage, allowing the company to refine its AI-powered personalization and navigation tools. The focus for the 2025 platform releases has been on user experience (UX), including a new integration with Microsoft Teams, which brings benefits information directly into the flow of work.

The system is designed to reduce the administrative burden on HR teams while improving employee confidence. For example, two-thirds of employees with access to benefits support tools feel confident in their plan choices, compared to only 50% of unsupported employees. The platform's ability to deliver AI-powered nudges and personalized guidance is what converts a massive user count into a sticky, high-value service. That's a powerful network effect.

The shift to remote and hybrid work models increases the need for cloud-based, self-service HR platforms

The hybrid work model is the new normal, requiring a complete overhaul of how benefits administration is delivered. In 2025, roughly 32.6 million Americans-about 22% of the national workforce-are working remotely. This shift means the old paper-based or in-office HR model is dead. The demand for digital solutions is reflected in the projected global spend on remote work technology, which is expected to reach $90 billion by 2025.

For Alight, this is a significant tailwind. The Worklife platform, being cloud-based, is perfectly positioned to serve this decentralized workforce. The platform's self-service tools and mobile-first design are essential because 70% of job seekers now include hybrid work in their preferred options, making flexible benefits access a core part of the employee value proposition. Furthermore, the trend is positive for employers, as 63% of businesses report reduced overhead and improved employee wellness with remote policies, provided the technology is in place.

Growing corporate focus on Diversity, Equity, and Inclusion (DE&I) requires flexible, non-discriminatory benefits administration

A diverse workforce has diverse needs, and a one-size-fits-all benefits package is now a liability. The shift to remote work has already been shown to improve diversity in hiring, with applications from women and underrepresented minorities increasing by 15% and 33%, respectively, for remote roles. This rising diversity puts pressure on benefits platforms to offer flexible, non-discriminatory options that address a wide range of life circumstances.

Alight addresses this by focusing on personalization through its unified platform, which is the only way to effectively manage a benefits ecosystem for a modern, diverse workforce. The platform integrates specialized services from partners like Carrot Fertility (family planning) and Lyra Health (mental health), allowing employers to offer a menu of benefits that can be tailored to individual needs, regardless of age, gender, or family structure. This personalization, driven by data and AI, is the defintely the core mechanism for delivering on DE&I commitments in benefits administration.

• Integrate specialized benefits like Carrot Fertility and Lyra Health.
• Use AI to personalize benefit recommendations to diverse employee needs.
• Support varied family structures with flexible absence management features.

Alight, Inc. (ALIT) - PESTLE Analysis: Technological factors

Aggressive investment in Artificial Intelligence (AI) and automation to enhance service delivery and client experience.

Alight, Inc. is defintely leaning hard into Artificial Intelligence (AI) and automation, moving past simple digitization to truly reimagine service delivery. This isn't a future plan; it's a current-year operational reality. The company has launched new AI-centric services, including an 'AI agent assist software' and enhanced automated voice response, specifically to improve operational efficiency and client interaction.

This focus on AI is already showing up in the numbers. Operational and technology initiatives have driven increased efficiency, which helped Adjusted EBITDA climb to $138 million in Q3 2025, up 17% from the prior year. By Q1 2025, nearly 80% of Alight's clients had already adopted the new AI-driven functionalities, showing rapid uptake of the technology. The goal is simple: use AI to make the complex world of HR and benefits feel easy for the end-user.

Strategic shift to a Business Process as a Service (BPaaS) model leverages the proprietary Alight Worklife platform.

The core of Alight's technology strategy is the shift to a Business Process as a Service (BPaaS) model, which is delivered through the proprietary Alight Worklife platform. This platform is the unified, cloud-based engine for all their services-health, wealth, and human capital. It's a single solution that eliminates the complexity of dealing with multiple vendors for large enterprises.

The scale of this platform is massive, serving over 35 million people and dependents globally. This BPaaS model is critical because it drives recurring revenue, which accounted for a strong 91.7% of total revenue in Q3 2025. For clients, the value is clear: a 2024 Forrester study on a global company using Alight Worklife found a measurable Return on Investment (ROI) of 112%. That's a compelling case for migration.

The company is actively expanding partner collaborations to bolster its AI-driven capabilities and technology roadmap.

Alight knows it can't build everything itself, so it's been aggressively expanding its partner network to bolster its AI and technology roadmap. This is a smart way to bring specialized, best-in-class solutions to clients quickly.

Recent partnerships in 2025 focus on integrating advanced, AI-driven solutions directly into the Worklife platform. For instance, the partnership with Sword Health integrates AI-powered musculoskeletal and mental health care solutions. They also successfully integrated Goldman Sachs Asset Management into Worklife and signed their first client for that offering in Q3 2025. This is how they create a sticky, comprehensive ecosystem.

2025 Strategic Technology Partner	Core Capability Integrated	Business Impact
Sword Health	AI-powered Musculoskeletal & Mental Health Care	Offers outcome-based pricing and proven healthcare cost savings.
MetLife	Guaranteed Income Solution (Annuities)	Expands wealth offerings and retirement income options on the platform.
Goldman Sachs Asset Management	Investment Management Integration	Signed first client in Q3 2025, expanding wealth management services.
Microsoft (Teams)	Worklife Platform Integration	Allows employees direct access to benefits within the Teams platform.

Continuous risk from cybersecurity vulnerabilities and the need to protect massive client and employee data.

Honestly, the biggest technological risk for a company holding human capital data for 35 million people is cybersecurity. The sheer volume and sensitivity of the data-health, wealth, and personal information-make Alight a prime target.

The company has an intelligent layered security model and requires multi-factor authentication for all online transactions to combat this. They also use an expert AI fraud team for real-time fraud detection and prediction. To assure clients, Alight's security controls are assessed over 350 times each year and they maintain compliance with major regulations like HIPAA, HITECH, GDPR, and CCPA. Still, one major breach could easily overshadow all the operational and financial progress, like the projected 2025 Adjusted EBITDA of up to $620 million.

Action for you: Review Alight's latest SOC 2 report to assess the rigor of their controls against your firm's internal security standards.

Alight, Inc. (ALIT) - PESTLE Analysis: Legal factors

Implementation of the SECURE 2.0 Act mandates automatic enrollment for new 401(k) plans starting January 1, 2025.

The SECURE 2.0 Act (Setting Every Community Up for Retirement Enhancement Act) presents a massive operational shift for retirement plan administration, which is a core service for Alight, Inc. The most immediate legal mandate is the automatic enrollment requirement for new 401(k) and 403(b) plans established after December 29, 2022. This takes effect for plan years beginning after December 31, 2024.

Here's the quick math: new plan sponsors must now default-enroll eligible employees at an initial contribution rate between 3% and 10% of compensation. Plus, the plan must include an auto-escalation feature, increasing the deferral rate by at least 1% annually until it hits at least 10%, but not more than 15%. This complexity is a clear opportunity for Alight, Inc. to sell compliance and administrative services, especially for the multiemployer plans facing significant challenges in coordinating payroll and tracking deferrals across multiple employers. Another key 2025 change is the expanded eligibility for Long-Term, Part-Time Employees (LTPTEs), who must now be permitted to contribute after working at least 500 hours in two consecutive years, down from three.

Eight new state-level data privacy laws (e.g., Minnesota, Maryland) take effect in 2025, increasing compliance complexity.

The lack of a federal data privacy law means a fragmented, state-by-state compliance nightmare for any national benefits administrator like Alight, Inc. In 2025 alone, eight new comprehensive state privacy laws take effect, adding to the growing complexity. This patchwork dramatically increases the risk of non-compliance, which translates directly into a higher demand for Alight, Inc.'s data management and security services.

The laws in Minnesota and Maryland are particularly strict. The Minnesota Consumer Data Privacy Act (MCDPA), effective July 31, 2025, applies to businesses processing data for over 100,000 residents and carries potential fines of up to $7,500 per violation. Maryland's Online Data Privacy Act (MODPA), effective October 1, 2025, is even more stringent, requiring data collection to be only what is 'reasonably necessary and proportionate' and imposing a complete ban on the sale of sensitive data, with fines up to $10,000 per violation. Honestly, this is a massive tailwind for Alight, Inc.'s digital security and compliance consulting revenue.

New 2025 State Privacy Law	Effective Date	Key Threshold (Consumers)	Max Penalty per Violation
Delaware Personal Data Privacy Act (DPDPA)	January 1, 2025	35,000	Varies (AG Discretion)
New Jersey Data Privacy Law (NJDPL)	January 15, 2025	100,000	Varies (AG Discretion)
Tennessee Information Protection Act (TIPA)	July 1, 2025	175,000	Varies (AG Discretion)
Minnesota Consumer Data Privacy Act (MCDPA)	July 31, 2025	100,000	Up to $7,500
Maryland Online Data Privacy Act (MODPA)	October 1, 2025	35,000	Up to $10,000

Heightened regulatory scrutiny on group health plan transparency and Pharmacy Benefit Manager (PBM) business practices.

The regulatory spotlight on group health plans is intense, focusing on transparency and the opaque business practices of Pharmacy Benefit Managers (PBMs). This is a direct result of the Consolidated Appropriations Act (CAA) rules, which are being clarified by the Department of Health and Human Services (HHS) and the Department of Labor (DOL) in 2025. For example, a new Executive Order in April 2025 directed the DOL to propose regulations by mid-October 2025 to improve fiduciary transparency into PBM fees and compensation paid to brokers.

This scrutiny forces employers-the plan sponsors-to demand more detailed reporting from their benefits administrators to prove they are meeting their fiduciary duty. Alight, Inc. must be defintely ready to provide granular data on:

• All manufacturer rebates received by the PBM.
• Actual drug acquisition costs versus billed amounts (spread pricing).
• Financial arrangements that influence formulary design.

This is a compliance headache for plan sponsors, but an opportunity for Alight, Inc. to be the trusted partner providing the necessary data and consulting to navigate this new level of disclosure.

ERISA litigation is on the rise, increasing the fiduciary liability exposure for benefits administration services.

The surge in Employee Retirement Income Security Act (ERISA) litigation is a critical risk factor. Lawsuits filed in 2024 saw a shocking 183% increase over the prior year, with 136 new cases, and 2025 is predicted to be even busier. This trend directly increases the fiduciary liability exposure for the plan sponsors that Alight, Inc. serves, and by extension, for Alight, Inc. as a service provider (a co-fiduciary in some cases).

The most active areas of litigation include:

• Excessive Fee Claims: There were 65 excessive fee class actions filed in 2024, up from 48 in 2023, with a projected 68 in 2025. These target high recordkeeping and investment management fees.
• Forfeiture Misuse: Approximately 30 class actions were filed in 2024, challenging the practice of using forfeited 401(k) funds to reduce employer contributions.
• Health Plan Fiduciary Breaches: A growing number of lawsuits are targeting health plan fiduciaries over PBM relationships and prescription drug pricing.

The stakes are high. While many cases settle for smaller amounts, a handful continue to result in significant payouts, including a recent $69 million settlement. This environment makes Alight, Inc.'s fiduciary-focused services-like its Aon Retiree Health Exchange-more valuable, but also puts its own processes under the legal microscope.

Alight, Inc. (ALIT) - PESTLE Analysis: Environmental factors

You're looking for a clear view on Alight, Inc.'s environmental posture, and the data shows a company making tangible, measurable progress, which is defintely a competitive advantage now. Alight is actively reducing its carbon footprint, primarily through a major shift to cloud-based operations, and this focus is already earning external validation.

This matters because the market is no longer forgiving of vague sustainability claims; clients want to see the numbers. Alight's formalized Environmental, Social, and Governance (ESG) strategy maps near-term risks, like energy consumption, to clear actions, positioning them well against peers who are still drafting their initial plans.

Recognized on the USA TODAY America's Climate Leaders 2025 list for reducing emissions intensity year-over-year

Alight, Inc. was named to the prestigious USA TODAY America's Climate Leaders 2025 list, a significant external validation of its environmental efforts. This recognition, announced in April 2025, is based on a rigorous evaluation by Statista that confirms a year-over-year reduction in the company's emissions intensity (Greenhouse Gas emissions relative to revenue). This achievement signals to the market that Alight is successfully decoupling its business growth from its carbon output. For a services and technology company, this reduction is largely driven by operational efficiency, especially in data management.

Here's the quick math on their progress, using the most recent available data (2023) from their 2024 Global Impact Report to show the trend: a core strategy is migrating from energy-intensive physical data centers to cloud-based providers. As of the end of 2023, the company was over 80% complete with this transition. Also, Alight reduced its real estate portfolio by 37% over the past three years, which directly cuts down on facility-related energy use. That's a massive operational shift.

Commitment to utilize 100% renewable electricity within its facilities by 2032 as part of its sustainability strategy

The company has made a firm commitment to utilize 100% renewable electricity within its facilities by the year 2032. This long-term goal is being tackled through a dual approach: reducing overall electricity consumption and purchasing renewable power. The move to the cloud is the biggest lever for consumption reduction, as the cloud providers often have their own aggressive renewable energy goals. The next step is purchasing renewable electricity for the remaining global operations. This target aligns Alight with other major corporations making similar pledges to decarbonize their operations.

Formalized ESG strategy includes setting targets in line with the Science-Based Targets initiative (SBTi)

Alight has formalized its ESG strategy, which includes a commitment to the Science-Based Targets initiative (SBTi). This is crucial because SBTi provides a clear, scientifically-validated framework for greenhouse gas (GHG) reduction, aligning corporate goals with the Paris Agreement's 1.5°C warming limit. Alight pledged in 2023 to set Scope 1, 2, and 3 GHG reduction targets through the SBTi, committing to develop near- and long-term targets by 2026. This move shows a commitment to not just reporting, but to a verifiable, net-zero transition strategy.

This commitment involves tracking all three scopes of emissions, including the often-tricky Scope 3 (value chain) emissions. The data below illustrates where the bulk of their emissions currently lie, highlighting the focus areas for their SBTi targets:

Scope 3 GHG Emission Category (2023 Data)	2023 Emissions (Metric Tons CO2e)	Key Reduction Driver
Employee Commuting	16,944	Remote work, reduced real estate footprint
Use of Sold Products	7,208	Cloud-based platform efficiency
Business Travel	3,360	Post-pandemic travel policies

Increasing client demand for ESG-aligned vendors, making Alight's environmental performance a competitive factor

The market is demanding that vendors like Alight demonstrate environmental responsibility; it's a procurement filter now, not a nice-to-have. Large enterprise clients, especially those with their own net-zero commitments, are increasingly using ESG performance as a key criterion in vendor selection. Alight's verified emissions reduction and its SBTi commitment directly address this growing client demand. This makes their environmental performance a strong competitive factor in securing and retaining multi-year contracts, especially with Fortune 500 companies.

The strategic actions driving this competitive edge include:

• Migrating data center operations to the cloud, reducing energy footprint.
• Reducing the physical real estate portfolio by 37%, lowering facility-related emissions.
• Aligning with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, ensuring transparent climate risk reporting.

This isn't just about being green; it's about business resilience and winning bids.

Next Step: Finance: Model the potential cost savings from the 100% renewable electricity goal by 2032, factoring in 2025 PPA market rates.