Sustainability Will Evolve to Meet Changin’ Times

The lyrics to one of Bob Dylan’s most famous songs could certainly apply to the new political environment facing corporate sustainability professionals today: “The times they are a-changin’.”  Following the actions of the new Trump Administration to pull out of the Paris Agreement on climate change and to dismantle diversity, equity, and inclusion (DEI) programs across the federal government, many companies are reevaluating their commitments to sustainability and DEI. In some cases, companies have ended DEI programs or are renaming programs to avoid pushback from the Administration and outside groups.

While these challenges may seem overwhelming, the good news is that the business rationale for focusing on sustainability has not changed. Our Top Stories in this issue of the Sustainability Highlights newsletter demonstrate that the value of sustainability is still recognized by CEOs and business leaders, and their efforts will continue even as the way companies communicate about sustainability will adapt to the current political climate.

An article on edie about PwC’s 28th Annual Global CEO Survey says that two-thirds of the CEOs surveyed reported that climate-related investments had either reduced costs or had no significant impact on costs to the enterprise. According to the survey, “a clear global trend is emerging: aligning climate-friendly investments with long-term business strategies drives stronger financial performance.”

Another article from edie reports on a recent survey by the Capgemini Research Institute of 2,500 global business leaders, which found that 62% of businesses are planning to increase their sustainability budgets in 2025, by an average of 10.5%. The survey found that companies see sustainability “as a means of weathering persistent challenges such as supply chain disruptions and high energy and commodity prices.”

Contributor David Carlin in Forbes magazine says that based on his conversations with sustainability leaders and executives in the financial sector, he believes “sustainability is not retreating – it is evolving.” He sees three key shifts coming in 2025 that will have big implications for business: first, a move away from high-profile public commitments toward quieter, results-focused action; second, the integration of sustainability into core business functions so it becomes part of the everyday fabric of firms; and last, a stronger focus on sustainability as a driver of economic opportunity and client value.

Technology will certainly play an important role in helping companies achieve sustainability goals that have an impact on the bottom line and help increase revenue. In an article in Tech Informed, experts discuss predictions for green technology advances that will drive energy efficiency in 2025, including the increased use of AI, digitalization of communications, and circular economies.

The G&A team will continue to monitor the impact of the changing political environment on corporate sustainability initiatives and how companies communicate about sustainability. As always, we are available to discuss how our experts can help you navigate today’s challenges and opportunities. Please reach out to us at info@ga-institute.com.

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