As sustainability regulations are rolled back, particularly in the United States, some organizations are reconsidering their commitments. The temptation to pause or scale back on sustainability initiatives is understandable amid shifting policies and the rising complexity and cost of compliance. Yet, these conditions are not a call to step away. Instead, they offer a critical chance to reassess and ensure sustainability principles are tightly aligned with core business objectives.
Periods of uncertainty provide companies with the impetus to focus on what truly matters, shifting from broad efforts to targeted strategies that drive tangible impact. Aligning sustainability objectives with business goals builds resilience, fosters efficiency and enhances brand reputation. Abandoning sustainability now is a missed opportunity to recalibrate and strengthen your approach for sustained success.
A new sustainability landscape: Challenge and opportunity
Policy changes have created ambiguity in the sustainability space. According to a May 2025 Conference Board survey, many US sustainability leaders expect decarbonization and sustainability efforts to slow due to regulatory rollbacks. However, international momentum remains strong, with regions like the European Union and China accelerating their investments and regulatory advances.
Scott Lehmann, Vice President of Operational Risk and Supply Chain at Sphera, notes that businesses’ responses vary:
- Leaders: Maintain full commitment, advancing sustainability regardless of headwinds.
- Compliant actors: Adopted sustainability due to external pressures, now reassessing its necessity.
- Re-assessors: The largest group, using the current environment to reconsider and better align furthering sustainability goals with business strategy.
The key shift is from asking whether to embrace sustainability most companies cannot afford to abandon it completely, to asking how to maximize its value.
Three steps to smarter sustainability strategy
This is not a time to pause sustainability commitments. Leading organizations are using the regulatory lull to build more effective frameworks. Here’s how you can recalibrate:
-
Align sustainability with core business goals
Move beyond a one-size-fits-all sustainability model. Identify the sustainability issues most relevant to your company and industry. Targeted, well-integrated initiatives drive both compliance and business value by supporting what matters most, whether that’s human rights in fashion, pollution control in chemicals or decarbonization in logistics.
Industry and business model matter, as do whether you serve other businesses or direct consumers. Now is the time to evaluate regulations and harmonize them with operational objectives so sustainability becomes a source of competitive advantage rather than a compliance burden.
-
Strengthen your data capabilities
Robust sustainability strategies are built on high-quality data. Many companies struggle not from a lack of information, but from fragmentation and insufficient analysis. Streamline your approach: ensure your data systems inform decisions, automate where possible and model both risks and opportunities to support agile sustainability management.
Structured, actionable data enables scenario planning and proactive risk assessment, critical to fulfilling sustainability obligations and anticipating change.
-
Integrate sustainability across the organization
Sustainability should no longer operate in a silo. Effective implementation depends on embedding sustainability into performance reviews, strategic planning, and daily workflows across all functions. Make sustainability an organization-wide responsibility so it becomes fundamental to operations, not just an overlay.
This transition mirrors how quality management became integral to manufacturing. Over time, sustainability will similarly evolve from a specialized focus to a core business imperative.
The road ahead: Sustainability as smart business
Using the current regulatory environment as an excuse to walk away from sustainability commitments would be shortsighted. Customer and investor expectations are only increasing, as are the reputational risks of “greenwashing” or neglect.
While regulations may ebb and flow, the business case for sustainability, managing risk, meeting stakeholder demands and improving operational efficiency remains robust. Organizations that proactively refine their strategies during this period will emerge more resilient and better positioned to lead in a competitive landscape. Even as some initiatives may be temporarily scaled back, abandoning sustainability entirely is not a viable path for forward-looking companies.
