Takeaways:
- Multiple studies reveal CEOs are committed to sustainability despite regulatory rollbacks
- Business value has become the top drive of sustainability efforts
- Many companies feel comfortable publicly communicating their progress
In recent years, sustainability has become something companies practice with conviction but discuss more cautiously. Changing regulations and global divisions over climate policy have reshaped how many businesses talk about sustainability.
Yet behind the scenes, many organizations continue to advance sustainability initiatives with measurable business impact. According to an Accenture CEO Study, 99% of CEOs are staying the course on sustainability commitments, and 88% say the business case for sustainability is stronger now than it was five years ago. However, only about half feel comfortable publicly communicating their progress.
Despite the recent headwinds surrounding sustainability, these leaders are staying focused for one overarching reason: business value.
A Bain & Company analysis of more than 35,000 CEO statements found that executive discussions of sustainability have shifted from compliance and environmental responsibility toward business resilience and risk mitigation. In 2023, 54% of CEOs linked sustainability to business value, up from only 34% in 2018.
So why are companies still investing in sustainability as regulatory demands soften? Here are several ways sustainability continues to quietly drive business value.
1. Recording financial gains and ROI
Forward-thinking companies now view sustainability as a revenue driver, not an expense. They recognize the unmistakable financial upside of climate adaptation and resilience.
In its fifth annual report, How Companies Are Tackling the Climate Challenge—and Creating Value, the Boston Consulting Group (BCG) found that four out of five companies reported financial gains from sustainability actions.
2. Meeting consumer expectations
While governmental sustainability focus may be waning, consumer and investor demand remains strong. A growing network of stakeholders of investors, regulators, consumers and civil society continues to raise expectations for corporate responsibility.
The Accenture CEO Study found that 60% of CEOs ranked customer demand among the top three drivers of their sustainability agenda, and 40% identified consumers as the single most influential group shaping their approach over the next five years.
A Bain & Company consumer survey spanning eight countries revealed that 79% of respondents are concerned about environmental sustainability and are changing their habits by reducing energy use, recycling more and buying fewer disposable products. Those same consumers expect the companies they support to do the same.
3. Prioritizing renewable and affordable energy
The rise of AI and data center growth has created unprecedented demand for affordable, renewable energy. Renewable energy is now more affordable than coal for new power generation. In many cases, it is also cheaper than running existing coal plants. Renewable energy is no longer simply an environmental ideal, it’s an economic imperative.
According to Accenture, 72% of CEOs expect major advances in renewable energy by 2050, citing its potential to deliver affordable, stable power while reducing emissions and saving money. Renewable sources help companies control energy costs, meet climate goals and build resilience in the face of global energy volatility.
4. Managing geopolitical and economic instability
Today’s macroeconomic and geopolitical climate poses both constraints and catalysts for corporate sustainability. Tariffs, wars and shifting trade policies are now part of everyday business risk.
Seven in 10 CEOs told Accenture they do not feel “very prepared” to manage the trade regulations, inflation and price volatility tied to these challenges. Even as federal rules fluctuate, organizations must still comply with state, local and international standards such as the European Union’s Industrial Emissions Directive, which requires rigorous environmental reporting.
In the absence of consistent governmental guidance, sustainability practices provide structure and accountability, protecting companies from litigation and enabling transparent performance measurement.
5. Anticipating and responding to supply chain risks
Global supply chains are being reshaped by both disruption and opportunity. Sustainability tools, particularly those powered by AI, allow organizations to identify risks, anticipate disruptions and act quickly to protect revenue.
In today’s volatile landscape, regulatory shifts or geopolitical events can destabilize supply chains within minutes. AI-driven sustainability software enables faster, data-informed decisions that minimize costs, reduce emissions and strengthen resilience.
6. Strengthening B2B relationships and supplier preferences
According to Bain & Company, B2B partnerships are increasingly guided by sustainability. Half of surveyed businesses already allocate more spending to sustainable suppliers and many plan to transition away from partners who fail to meet sustainability standards within three years.
Suppliers that demonstrate transparency and measurable supply chain progress are viewed as more reliable and resilient, building trust and long-term loyalty across the value chain.
7. Building a sustainable, data-driven future
To achieve sustainability goals, more organizations are investing in digital tools, data and AI. Accenture reports that 96% of CEOs believe innovation and technology are essential to advancing the global sustainability agenda, while 99% cite workforce upskilling as key to long-term progress.
Businesses that integrate sustainability into their core operations can expect positive impacts on revenue, employee loyalty and stakeholder trust.
Even if they no longer spotlight these efforts publicly, their stakeholders will see the results.
At Sphera, we help organizations turn sustainability commitments into measurable business outcomes through trusted, auditable data and AI-powered solutions. Learn how Sphera’s sustainability software helps companies operationalize sustainability, quietly and confidently.
Contact us to learn more.
