Senior Sustainability Leaders Tell Us Why ESG Won’t Die in 2025

The global landscape of Environmental, Social and Governance (ESG)
strategy is in constant flux — presenting both unprecedented challenges and
exciting opportunities for businesses.

While some companies may have recalibrated their
approaches,
what we saw in 2024 did not represent a retreat from responsible business
practices, but rather a necessary “reset” for long-term viability and
impact.

How can companies navigate in a swiftly evolving landscape, and adapt to the new
environment without facing backlash from key stakeholders?

To answer these questions, Ipsos brought together
the second sitting of the Ipsos ESG
Council — made up of more
than 50 global sustainability leaders, sharing their insights on the current
state of ESG.

While a resounding 90 percent of Council Members agree that ESG is fundamentally
transforming business practices, the path to progress is not without obstacles.
Here are four issues shaping the future of ESG:

1. The continued politicization of ESG

The political polarization of
ESG
is a global problem, particularly around DEI
issues and
climate
action.
This polarization constrains companies’ willingness to engage in sustainability
communications and creates uncertainty, which makes long-term planning a real
difficulty.

44 percent of ESG Council Members agree that ESG is more of a political football
than it is a priority for politicians and governments.

While political
pressures
endure, companies are developing strategies to navigate them. These largely fall
into the following three approaches:

1. Aligning initiatives with the core business value. The closer one hews
   to the purpose and mission of the company — the less likely one to be called
   out for
   greenwashing
   or *“woke capitalism.”

2. Balancing stakeholder interests. While government regulators are still
   important, employees, investors and consumers are key stakeholders, too.

3. Strategically managing comms. While keeping a lower
   profile
   limits the
   reputational
   and financial
   lift
   a company can receive from its sustainability actions, there are still
   benefits in cost savings, compliance and targeted outreach. As one Council
   Member noted, “We’ve had to limit our approach. Being too vocal about ESG in
   North America poses significant risks.”

2. The rocky road from ambition to practice

Developing and implementing a successful ESG strategy is no easy task. Three
foundational learnings emerged from Ipsos ESG Council Members’ experiences over
recent years:

1. ESG success demands a holistic and integrated
   strategy,
   rather than piecemeal initiatives. 98 percent of Council Members say they
   collaborate with other
   departments
   to fully embed sustainability, but 38 percent say that one department
   offering an objection to a proposed initiative can derail an entire project.

2. Strong governance is key to making progress. Without good governance,
   the very best initiatives will likely fail to get off the ground or not be
   executed to their full potential.

3. The initiatives and strategies a company should prioritize will depend on
   sector, market and company dynamics. Double materiality
   assessments
   are increasingly being used to identify priority areas. But even these
   identify an average of 11 priority areas — perhaps too many to effectively
   focus on and deliver action.

3. The challenge of proving ROI

The ultimate defense against the many and varied challenges to ESG is that
investment in such initiatives leads to the creation of business value. But how
do you measure and communicate the true value of
sustainability?

Ipsos ESG Council Members acknowledged the difficulties in quantifying return
on investment (ROI) of ESG
initiatives, particularly for social
programs.

However, best practices are emerging — such as integrating ESG
metrics
into financial decision-making, leveraging both quantitative and qualitative
data,
and adopting a long-term perspective that recognizes the value of building
resilience and anticipating future trends.

4. Bridging the gap between profit and purpose

But in many companies, there is still a fundamental tension between core
business value propositions and ESG commitments.

For ESG to be truly authentic and credible, it needs to be aligned with business
objectives and woven into core value propositions. This requires a fundamental
mindset shift, moving beyond viewing ESG as a cost center or compliance exercise
to recognizing it as a driver of innovation, resilience, and long-term growth.

As one Council Member put it, “The significant change for us is recognizing that
ESG is not an adjunct but should be central to every decision we make.

Looking ahead, regulation will play an increasingly important role in advancing
ESG and is already driving ESG reporting to become more rigorous and
standardized. AI and other technologies will also play a key role and are also
expected to revolutionize ESG data collection and reporting.

Find out more about how to navigate the evolving ESG landscape by reading the
2025 Ipsos ESG Council
Report.

For more information, please contact:

• Trent Ross, Executive Vice President, Corporate Reputation, Ipsos
• Anne Mitchell, Senior Vice President, Corporate Reputation, Ipsos

Get the latest insights, trends, and innovations to help position yourself at the forefront of sustainable business leadership—delivered straight to your inbox.

---

Ipsos

---

Published Mar 10, 2025 8am EDT / 5am PDT / 12pm GMT / 1pm CET