Key Impact Points:
- 87% of US executives are maintaining or increasing sustainability investments in 2025, citing it as a competitive advantage.
- 47% of C-suite leaders say rolling back ESG regulations would increase supply chain disruptions, while 41% expect inflation to rise.
- Only 53% of companies are on track to meet major ESG data compliance requirements, with widespread concern about data quality.
Most US Companies See Sustainability as a Strategic Edge
The 2025 US Business Sustainability Landscape Outlook survey by EcoVadis of 400 US-based global executives reveals that most companies view sustainability not just as a values-based pursuit but as a critical business strategy. According to the report, “The majority of companies surveyed (87%) have maintained or increased their investment in business sustainability since the beginning of 2025.”
Despite political pushback against ESG, many firms are ramping up sustainability efforts quietly. While 48% report no change to their strategies, 31% are investing more but promoting it less. Another 8% have gone entirely silent publicly but continue full implementation.
Sustainability Linked to Customer Retention and Risk Management
Leaders agree that sustainability enhances competitiveness—62% of directors and VPs and 59% of C-suite executives say supply chain sustainability helps attract and retain customers.
“Sustainability isn’t just about values – it’s about competitiveness,” the report states, underscoring the behind-the-scenes impact of ESG on brand, resilience, and cost efficiency.
Deregulation Seen as a Major Supply Chain Threat
Nearly half of C-suite leaders (47%) believe ESG rollbacks will disrupt supply chains. Another 41% warn it will raise consumer prices by complicating responses to climate-related shocks.
“Resilient leaders are acting now,” EcoVadis notes. Their strategies are rooted in five key accelerators identified in the Sustainable Procurement Barometer.
Only 5% of executives believe cutting ESG rules would have no impact, while 39% of C-suite executives expect reduced access to critical resources like food, water, and minerals. Meanwhile, 40% of directors and VPs foresee sourcing shifts to new regions as a result of weakened ESG oversight.
Related Content: Quietly Investing in Sustainability – Walking the Walk
Compliance Gaps and Data Risks Undermine ESG Readiness
Despite the importance of ESG, many companies lag on compliance. Only 53% are on track for California’s SB 253 and the EU’s CSRD. Readiness drops to 44% for the EU’s Carbon Border Adjustment Mechanism and 39% for Canada’s Modern Slavery Act.
Compounding the challenge, “33% of leaders admit to knowingly reporting ESG data that was based on estimates – even if they knew it was not accurate,” highlighting a trust gap.
Technology Investments Aim to Close Gaps
To bridge compliance and data accuracy challenges, firms are investing in ESG tech. Adoption rates include:
- 57% using ESG risk mapping tools
- 49% deploying supplier engagement platforms
- 34% using supply base mapping
- Only 18% using Scope 3 carbon hotspot mapping
53% plan to expand ESG risk mapping in the next 12 months, and 33% aim to invest in carbon engagement tools.
From Reporting to Resilience
EcoVadis emphasizes that the most forward-looking companies are investing in scalable tech that shifts ESG from a reporting burden to a resilience strategy.
“Even as the debate over business sustainability heats up, executives are focused on the reality – sustainability is what keeps supply chains running and customers on board,” said Pierre-François Thaler, co-founder and co-CEO of EcoVadis.
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