Beyond the Noise, Why Corporate Sustainability Isn’t in Retreat
There is considerable noise in the US media about rollbacks of climate regulations and incentives, as well as companies scaling back their sustainability programs, which might lead you to believe that sustainable corporate behavior is in retreat. However, while domestic policy signals matter, they don't tell the whole story. Markets, investors, and consumers are continuing to move brand purpose and sustainability forward. This momentum has shifted from compliance-driven action to business-driven value creation. Here's what the bigger picture shows.
1. Companies are Sticking with Their Targets:
Based on recent headlines, it might appear that companies are retreating from their ESG commitments, with major brands like Coca-Cola, Pepsi, and Unilever making the news for scaling back their initiatives. But don’t be fooled into thinking this is the new norm. Harvard Business Review indicates that 85% of organizations have maintained or even accelerated their efforts, while only 8% have scaled back and 5% have adjusted their messaging without changing their programs. This shows us that sustainability has become more than a reputational exercise, it’s a core business strategy that pushes innovation, cost-efficiency, and risk management.
2. Consumers Still Want it Despite Cost Pressure:
Even now, when prices are through the roof, more and more people are getting laid off, and there is uncertainty around access to food for millions of Americans, sustainability remains a powerful purchase driver. According to Kantar, 61% of consumers say they’ve chosen brands that have a positive social and environmental impact, while 43% report buying less or stopping altogether from those with a negative impact. Sustainability is becoming an expectation. Brands that want to meet consumer demands will deliver performance and purpose.
3. Global Regulation Tells a Different Story:
Here in the U.S., policy debates dominate headlines, but they don't tell the story at a global level. Across Asia, Europe, Latin America and California, regulatory frameworks are tightening and disclosure rules are changing and expanding. Multinational corporations must meet these standards to operate in global markets. That means sustainability priorities are increasingly being driven through global supply chains, regardless of local politics.
4. Investors Haven't Blinked:
ESG market indexes may have fallen out of favor, but there is an explosion on clean energy investment with clean energy stocks outpacing top equity indexes for several months this year. Beyond, renewables Morgan Stanley's Sustainable Signals: Individual Investors report, found that nearly 90% of investors globally express interest in sustainable investing. Over 75% of S&P 500 Companies in the US still link executive compensation to ESG performance. When access to capital depends on ESG performance, the business case becomes self-reinforcing. Investors understand that sustainability is about resilience. Anticipating future risks and protecting brand equity will help long-term returns.
5. Nonprofits and Civil Society Keep the Pressure On
Outside of government, which has historically struggled to implement effective sustainability regulations due to changing administrations, NGOs and advocacy groups remain powerful engines for accountability. Whether through scorecards like the CDP's Scores and A Lists, or BCorp's Impact Score, these organizations shape expectations for responsible business. This external pressure means that backsliding comes with reputational and stakeholder risk, which means that inaction is often more costly than taking action.
The Bottom Line
Policy will constantly shift. Political attention will waver. However, the direction of business is clear: companies, consumers, investors, and civil society are all converging on the same understanding that sustainability isn't a trend, but a transformation. Sustainability is here to stay, despite what the media may suggest, and companies that lead will utilize it as a foundation for competitiveness, trust, and long-term growth.
Let’s keep the conversation going if you’re exploring ways to strengthen your sustainability strategy or align your brand with purpose–connect with us. Together, we can turn good intentions into lasting results.
