LONDON — October 2025 — Despite economic uncertainty and shifting political winds, sustainability has entrenched itself as a core business priority for global executives, according to Deloitte Global’s 2025 C-suite Sustainability Report. The survey of more than 2,100 executives across 27 countries found that 45% identify climate change and sustainability as a top-three business challenge, on par with technology adoption and artificial intelligence (AI).
Investment Momentum Holds Steady
Far from retreating, companies continue to expand their sustainability spending. Eighty-three percent of respondents increased sustainability investments in the past year, with nearly one in seven reporting an increase of more than 20%. Notably, these trends have remained consistent year-over-year, even amid inflationary pressure and higher capital costs.
Two-thirds of executives said their priority actions are now producing positive revenue impacts, while many also cited gains in brand reputation, risk management, and compliance. Deloitte’s data points to a maturing view among business leaders: sustainability is no longer a peripheral initiative but a core driver of value creation and resilience.
Technology and AI Dominate the Agenda
The 2025 report positions technology adoption as the single most important catalyst for corporate sustainability progress. “Implementing technology solutions to achieve sustainability goals” ranked as the most-frequently cited action taken by companies—surpassing even energy efficiency measures and product innovation.
Eighty-one percent of global respondents said they are already using artificial intelligence to advance sustainability efforts, with another 16% planning to do so within the next year. AI applications range from tracking emissions and optimizing energy use to developing new low-carbon products and modeling climate-related risks.
Among those deploying AI, 65% use it to improve operational efficiency and cut emissions, while more than half apply it for risk mitigation and sustainable product development. The report suggests that digital transformation and sustainability transformation are increasingly converging within corporate strategy.
Embedding Sustainability Across the Enterprise
Nearly four in five executives say their company’s approach either transforms the core business model or embeds sustainability throughout operations. While 40% describe sustainability as central to their business model, another 39% said it is integrated organization-wide even if not yet core to strategic planning.
However, Deloitte notes a subtle plateau in implementation after years of steady acceleration. Fewer respondents this year report taking specific actions such as tying executive pay to sustainability performance, purchasing renewable energy, or setting supplier sustainability requirements. Executives attribute this to the difficulty of measuring environmental impact, not a loss of commitment.
Waning Stakeholder Pressure
One of the most striking findings is the decline in external pressure. Since 2022, the share of executives feeling strong stakeholder pressure to increase sustainability action has fallen across nearly every group — from governments (77% to 58%) and boards (75% to 60%) to investors (71% to 58%) and employees (65% to 54%).
Deloitte interprets this as a sign of both maturation and divergence: while sustainability expectations have normalized, the urgency of stakeholder activism has cooled. Some executives also report growing pushback against climate and ESG measures, particularly in North America.
The Business Case Endures
Despite softer external pressure, leaders see sustainability as an engine of business performance, not a compliance exercise. Revenue generation remains the most frequently cited benefit across all sustainability actions, followed by regulatory compliance and brand value. Only about 10% or fewer executives report negative financial impacts from sustainability initiatives.
Jennifer Steinmann, Deloitte Global’s Sustainability Business Leader, noted that the findings reveal an inflection point rather than a retreat. “Forward-thinking leaders have an opportunity to assess whether their sustainability strategy and investments are integrated with key performance drivers, material risks, and strategic priorities—helping ensure they continue delivering value and operational resilience into the future,” she said.
Charting the Road Ahead
The report outlines a de facto roadmap for companies embedding sustainability into strategy and operations:
- Implement technology solutions.
- Use more sustainable materials.
- Develop new sustainable products and services.
- Boost operational efficiency.
- Track and disclose sustainability metrics.
Deloitte’s analysis suggests that organizations combining these actions—especially through digital tools and AI—are best positioned to capture new growth and resilience.
For Decision-Makers
For policymakers, investors, and regulators, the implications are clear: global business leaders now view sustainability not as an obligation but as a source of competitive advantage. Yet the slowing pace of new initiatives and diminished stakeholder pressure signal a need for renewed policy alignment and transparent measurement standards to sustain momentum.
As Steinmann concludes, the next phase of corporate sustainability will depend less on rhetoric and more on integrating climate and nature goals into financial and technological strategy—where environmental progress and business performance converge.
Related Content: Local Voices, Global Climate Chain: A Deloitte Report
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