EY and Watershed form alliance on sustainability measurement and reporting
The EY organization has announced an alliance between Ernst & Young LLP (EY US) and Watershed, a sustainability AI company focused on ESG measurement and reporting. The EY-Watershed Alliance aims to help organizations measure and report their environmental impact with greater confidence, efficiency and transparency.
- EY US and Watershed have formed the EY-Watershed Alliance, announced on Oct. 12, 2026.
- The alliance combines Watershed's sustainability AI platform with EY US advisory, implementation and program management capabilities.
- It supports scope 1, 2 and 3 emissions measurement, product carbon footprinting and sustainability data management.
- The stated aim is audit-ready carbon data, automated GHG calculations and scalable reporting for regulatory readiness.
What the alliance combines
According to the announcement, the EY-Watershed Alliance pairs Watershed's sustainability AI platform with EY US implementation, advisory and sustainability transformation capabilities. The stated goal is to help organizations meet regulatory requirements as well as customer and investor expectations.
EY says the offering draws on its sustainability advisory, implementation and program management capabilities. Watershed contributes the platform that handles the data and measurement side.
Scope of the services
The companies point out that the data and measurement methodologies needed to measure scope 1, 2 and 3 emissions are complex and far-reaching. Through the alliance, EY US and Watershed teams support organizations with an end-to-end sustainability process. According to the announcement, it covers:
- audit-grade data collection
- measurement and reporting
- product carbon footprinting
- planning and sustainability advisory services
The announcement also lists automated greenhouse gas emissions calculations, audit-ready carbon data and scalable sustainability reporting capabilities as ways to improve regulatory readiness. It adds that the work supports clients' decarbonization initiatives.
Comments from both companies
Derek Przybylo, EY-Watershed Alliance Leader at EY US, said the alliance "helps organizations move from their sustainability goals to measurable action." He said the combination helps clients strengthen emissions measurement, automate reporting and build scalable sustainability solutions.
Christian Anderson, CEO at Watershed, said: "Over the next few years, sustainability work is going to evolve. It will become more automated and action-oriented." He added that sustainability insights will fuel operational efficiency and resilience in addition to meeting reporting demands. In his words, the alliance lets companies pair "Watershed's rigorous data foundation with EY US experience guiding organizational change."
About the partners
Watershed describes itself as a sustainability AI platform that helps companies such as Airbnb, Carlyle Group, FedEx, Visa and Dr. Martens measure, report on and reduce their emissions. It automates data management for climate and ESG data, produces audit-ready reports and helps companies surface decarbonization options. According to the company, Watershed AI is built on a database of more than 3.2 million emissions factors and the experience of in-house climate scientists and policy experts. It is dual-headquartered in London and San Francisco.
EY says its teams can provide services in more than 150 countries and territories, across assurance, consulting, tax, strategy and transactions.
What it means for organizations
For companies facing emissions reporting obligations, the alliance offers a route that links software-based data collection and calculation with advisory and implementation support from a single pairing of providers. The announcement frames the offer around regulatory readiness and audit-ready data, as well as meeting customer and investor expectations. Further details are available at ey.com/alliances, according to the release.
