Introduction
It’s January 2025. Despite economic headwinds, threats of tariffs and shifting global policies, environmental sustainability remains a priority for businesses. Pretty cool, eh? Headlines may focus on companies scaling back diversity, equity, and inclusion (DEI) initiatives, banks exiting the Net Zero Asset Managers (NZAM) initiative, or organizations delaying climate goals, but here’s the twist: plenty of organizations are doubling down on sustainability.
Across North America, sustainability consulting firms (like ours at ThisRock) are busier than ever. Requests to help companies develop sustainability strategies, secure ESG certifications, and improve their supply chain practices keep pouring in. It’s a remarkable shift. It defies political and economic uncertainties. Still think big brands are backing out of environmental promises? Think again.
Why is this happening? Let’s hop into the factors driving this continued commitment to environmental promises.
Why Businesses Aren’t Backing Out of Sustainability
1. Pressure from Global Giants
Some of the world’s largest brands, Nestlé, PepsiCo, Post Holdings, General Motors, Google, Amazon, and AstraZeneca, to name a few – are demanding sustainability accountability from their suppliers. These companies have publicly committed to ambitious sustainability goals, and they’re holding their value chains accountable.
If you’re a mid-sized business in Canada or the U.S., you’ve likely received emails or procurement questionnaires asking:
- “Do you have an environmental policy?”
- “Can you share your labor and modern slavery data?”
- “What are your anti-corruption initiatives?”
Large corporations are facing pressure from investors, customers, and regulators to meet their sustainability promises, and they’re passing that expectation down the supply chain. If smaller businesses don’t comply, they risk losing their biggest contracts. Yikes.
2. Consumer Demand Is Growing
Today’s consumers care about sustainability. A recent study found that 62% of North American shoppers prefer brands that demonstrate strong environmental and social values. Millennials and Gen Z, in particular, want to spend their dollars with companies that prioritize the planet and people over profit.
Businesses that lag in sustainability risk losing market share to competitors who authentically embrace ESG principles. This consumer-driven trend is pushing companies to align their practices with sustainable values.
3. Regulations Are Catching Up
Governments around the world are introducing stricter ESG-related regulations. The European Union’s Corporate Sustainability Reporting Directive (CSRD) now requires businesses operating in the EU to disclose detailed ESG metrics. In Canada, new carbon pricing and reporting requirements are making sustainability an operational necessity rather than an optional exercise.
While the U.S. regulatory landscape varies by state and administration, companies are proactively aligning with global standards to avoid disruptions in international markets.
4. Cost Savings from Sustainability Initiatives
It’s profitable to be “good.” Many businesses are realizing that sustainability isn’t just good for the planet, it’s good for their bottom line. Energy efficiency, waste reduction, and sustainable procurement often lead to significant cost savings. For example:
- Switching to LED lighting can cut energy costs by up to 80%.
- Streamlining waste management can reduce landfill fees and material costs.
- Investing in renewable energy can stabilize long-term utility expenses.
These financial benefits make sustainability an attractive proposition, even during economic downturns.
5. Employee Expectations
Employees, especially younger ones, want to work for companies that align with their values. Sustainability has become a key factor in attracting and retaining top talent. Companies with strong ESG programs report higher employee satisfaction, engagement, and productivity. In fact, Glassdoor surveys show that over 70% of employees consider a company’s environmental and social impact when deciding where to work.
A Positive Trend Amid Negative Headlines
Yes, there are headlines about companies pulling back on DEI initiatives or missing climate targets. But here’s the untold story: many businesses are still in the game, and some are going further than ever. Here are a few inspiring examples:
General Motors
GM has committed to becoming carbon neutral by 2040 and aims to transition entirely to electric vehicles by 2035. Despite challenges in the automotive industry, GM’s investments in EV technology and renewable energy remain on track.
Amazon
Amazon’s Climate Pledge, aiming for net-zero carbon emissions by 2040, continues to drive innovation. The company has invested heavily in renewable energy projects, sustainable packaging, and electric delivery vehicles.
PepsiCo
PepsiCo’s Pep+ (PepsiCo Positive) strategy focuses on sustainable agriculture, water stewardship, and reducing GHG emissions. They’ve recently rolled out regenerative farming programs that benefit both the environment and farming communities.
Google has been carbon-neutral since 2007 and aims to run entirely on carbon-free energy by 2030. Their continued leadership in renewable energy procurement sets a high bar for other tech giants.
How Smaller Businesses Are Adapting
Small and mid-sized businesses (SMBs) are stepping up to meet these challenges as well. With help from sustainability consultants, they’re crafting environmental policies, calculating carbon footprints, and aligning with global standards like EcoVadis, CDP, and TCFD.
For example, a small Toronto-based logistics firm recently adopted a Scope 1 and 2 emissions reduction plan to maintain a key client, a global e-commerce leader. By implementing low-cost, high-impact initiatives like switching to LED lighting and optimizing fuel use, they retained their contract and gained new business opportunities.
The Role of Sustainability Consultants
As a sustainability consultant, I see this positive momentum firsthand. Businesses are reaching out for help with:
- Creating sustainability and ESG strategies.
- Preparing scorecards for EcoVadis, CDP, and other frameworks.
- Aligning with UN Sustainable Development Goals (SDGs).
- Developing policies on human rights, anti-corruption, and environmental stewardship.
Despite the noise of political and economic challenges, the demand for sustainability expertise remains strong. Companies understand that ignoring ESG is no longer an option if they want to stay competitive in the global market.
Final Thoughts: Think Again
So, think big brands are backing out of environmental promises? Think again. While the road to sustainability is far from smooth, the overwhelming trend is forward. Companies large and small are stepping up, proving that doing good for the planet is good for business.
As we head deeper into 2025, this commitment to sustainability is not just a trend – it’s the future. The world’s biggest brands, their suppliers, and consumers are all driving change. And for businesses ready to adapt, the opportunities are endless.
