Corporate Sustainability in Crisis

The headline of this HBR article by Georg Kell, Martin Reeves and Helena Fox argues that Corporate Sustainability is in crisis. But is it?

The tide certainly seems against corporate sustainability: the political landscape, including rivalry between nations, increasing polarization and a populist backlash, is shifting and redefining the conditions under which companies must survive and thrive. The US government is trying to unwind all earlier commitments to sustainability and the European Green Deal as well as the reporting requirements it put forth is/are being watered down.

However, while in the short term a further unravelling can be expected, there are plenty of reasons to believe that a new, renewed focus on sustainability will emerge:

1. Enormous progress has been made on renewable energy

2. Planetary realities, i.e. climate disasters, will shape politics and,

3. New business models are transforming sustainability into a source of profit and competitive advantage

   
   

Until we reach this 'new state' though, what can companies do?

1. Focus on the long term scenario of a sustainability rebound

2. Look to fundamental values to help build bridges between polarized communities.

3. Champion localization

4. Integrate sustainability with innovation and tech strategy

5. Embrace a new mindset to expect reversals and contradictions, prize pragmatism and focus priorities, prize self-help over global collaboration, seize the opportunity to make progress (precisely now!)

While the current retreat from sustainability is real, it is likely to be temporary. Long-term sustainability objectives to not need to be in conflict with short term ones and businesses that can navigate both, will come out on top.

Source: Kell, G., Reeves, M., Fox, H. (HBR, 22 April 2025)

Photo Credit: R. van Zadelhoff (2025)