State of sustainable business 2026
This 2026 research identifies a shift toward a pragmatic era in corporate sustainability, dominated by regulatory compliance. Key findings reveal a disconnect between sustainability teams and executives, stagnant budgets, and a focus on direct operations. AI adoption is rising for reporting, though formal governance remains nascent.
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OVERVIEW
About this research
In Spring 2026, GlobeScan and BSR conducted an online survey of 124 corporate sustainability professionals to examine the evolution of sustainable business. All respondents held senior positions at companies with annual revenues of at least USD 1 billion. The sample was primarily based in North America (48%) and Europe (39%), representing diverse sectors including consumer products, technology, and financial services. The findings contrast current perspectives with data from a decade ago to highlight significant shifts in the industry.
Executive summary
The research indicates that corporate sustainability is moving from a period of ambition-setting into a more focused, pragmatic era. Companies are increasingly prioritising implementation and compliance over broad agenda expansion. However, this shift faces challenges, including constrained resources and a notable disconnect between sustainability teams and senior leadership. Key findings suggest that while AI adoption is accelerating, governance has not kept pace, and climate risk assessments have yet to translate into meaningful adaptation strategies.
Priorities and drivers of corporate sustainability
Sustainability professionals identify compliance and reporting requirements as their primary focus, with 61% citing it as a very significant priority. This is followed by climate target setting (51%) and supply chain engagement (39%). Conversely, just transition and living wage initiatives are currently lower priorities. In a marked shift since 2016, regulation has become the dominant driver of sustainability efforts, cited by 76% of respondents compared to 31% a decade ago. Other influential drivers include reputational risks (60%) and consumer demand, which has doubled from 21% to 44%.
Engagement with sustainability across the business
There is a significant perception gap regarding the role of sustainability. While 77% of sustainability leaders view it as a core driver of long-term business strategy, only 39% of senior executives share this view. Senior leadership teams predominantly see sustainability as a risk management or compliance function (74%) or a reputational necessity (70%). Furthermore, engagement with the CEO’s office has declined steeply over the last decade. While integration with Finance, Legal, and IT has increased due to reporting requirements, engagement with 11 of 16 business functions has decreased since 2016. Only 10% of respondents say sustainability is a top-three priority for their CEO, down from 23% in 2016.
Implementation, ambition, investment
The report highlights a potential “say/do” gap: 90% of companies are maintaining or accelerating sustainability implementation, yet investment is not matching this ambition. Only 18% of respondents expect their budgets to increase in the next cycle, while 25% expect decreases. Internal barriers, such as organisational alignment and competing priorities, are seen as greater obstacles than external policy or market constraints. Additionally, 71% of respondents feel one or more commitments are at risk of being scaled back, with Diversity, Equity, and Inclusion (DEI) related commitments identified as the most vulnerable (44%), particularly in North America.
Climate change
Physical climate risk is now widely integrated into enterprise risk management by nearly 60% of companies. However, there is a lack of operational response; only 30% have developed adaptation plans for their own operations, and only 15% have plans for their supply chains. Regarding decarbonisation, 27% of companies still do not have a net-zero goal. Among those that do, 2050 remains the most common target year (39%), while 10% aim for 2030.
Human rights
Human rights management is becoming less comprehensive, narrowing its focus toward direct operations (79%) and Tier 1 suppliers (71%). Engagement with more vulnerable workers further down the value chain has declined; management of Tier 2+ supply chain impacts fell by 13 percentage points to 33% since 2017. This narrowing of scope suggests that companies are focusing on areas where they have the most direct control and reporting obligations.
Sustainability & AI
AI adoption for sustainability is primarily focused on reporting and disclosures (50%) and emissions estimation or data quality (31%). Despite this uptake, governance is lagging. Only 34% of companies have formal responsible AI governance in place that includes sustainability considerations. Many organisations (26%) are not currently managing the environmental and social impacts of AI, such as its energy footprint or social risks like bias and privacy.
Future expectations
Looking ahead, 56% of respondents expect the next phase of corporate sustainability to be a consolidation period focused on delivering fewer, clearer priorities. Regional influences are also expected to shift; 43% expect US influence on sustainability to decline over the next three years, while 62% anticipate growth in influence from the Asia-Pacific region and the European Union.
Closing thoughts
The report concludes with several recommendations for businesses. Companies are encouraged to make fewer priorities matter more by focusing on strategic goals that align with business relevance. There is a critical need to build organisational capacity to translate commitments into action. Finally, sustainability teams should strive to make their function strategically indispensable by anchoring sustainability in performance, resilience, and competitiveness rather than treating it solely as a compliance exercise.