More than 90% of surveyed professionals believe current sustainability practices are ineffective amid rising ESG compliance challenges and environmental governance backlash. ESG BROADCAST shares key takeaways.
Regulatory Extract:
The global sustainability agenda is at a pivotal crossroads, according to a new survey conducted by the ERM Sustainability Institute, GlobeScan, and Volans. In the “Sustainability at a Crossroads” report, 93% of sustainability experts expressed that the prevailing approach to environmental and social development is inadequate, with over half (56%) explicitly calling for a radical overhaul. The findings reveal growing dissatisfaction with both institutional leadership and execution, as stakeholders grapple with the accelerating urgency of climate-related and governance risks.
Performance ratings from the study underscore this discontent: national governments received the lowest marks, with only 5% of respondents evaluating their sustainability contributions positively. The private sector performed marginally better at 14%, while even the United Nations—long considered a central driver of international sustainable development—garnered only 29% approval, down 12 points from 2021. NGOs, often perceived as more agile actors, also suffered a 16-point decline, with a current approval rating of 45%.
Equally concerning is the intensifying backlash against sustainability. Globally, 70% of respondents noted significant resistance to sustainability efforts, with the phenomenon most pronounced in North America (91%) and less so in the Asia-Pacific region (38%).
Despite these challenges, the report identifies actionable pathways across sectors. Technological innovation and R&D for sustainability topped the list of high-impact and feasible corporate strategies, cited by 70% of experts. The integration of sustainability into core business operations and adoption of circular economy practices followed closely. On the policy side, carbon pricing and urban sustainability planning were ranked as the most promising and achievable interventions.
In the finance domain, impact investing, ESG integration into investment decisions, and green bonds were highlighted as strategic tools with high feasibility and impact. Yet, mechanisms such as natural and human capital accounting, though considered high-impact, were rated low on the scale of practical implementation—revealing a gap between potential and political will.
Civil society is also positioned as a pivotal force for change. Education and advocacy initiatives were cited as both impactful and feasible, while litigation strategies, although considered high-impact, were viewed as difficult to implement. Meanwhile, NGO-led campaigns, while feasible, were perceived to have limited effect on systemic transformation.
To navigate these diverging views and tactics, the report categorizes experts into two broad camps: Incumbents (including Traditionalists and Institutionalists) who favor continuity and incremental reform, and Insurgents (comprising Pathfinders and Radicals) advocating for transformative, systemic change. This segmentation is designed to help stakeholders identify collaboration opportunities and areas of strategic divergence.
“The current system is untenable,” said Chris Coulter, CEO of GlobeScan. “But we now have a roadmap of 64 actionable strategies that can lead us forward to 2030.” Mark Lee of ERM echoed this sentiment, urging leaders to embrace bold, strategic adjustments. Volans founder John Elkington warned that a psychological shift in markets and mindsets is on the horizon, calling today’s corporate sustainability strategies “no longer fit for purpose.”
Strategic significance lies in the urgent need for cross-sector recalibration of sustainability approaches. The findings provide ESG stakeholders—especially those in corporate governance, regulatory affairs, and capital markets—with evidence-based guidance to align policies, investments, and strategies for higher impact. Companies seeking long-term resilience must re-evaluate how they approach innovation, accountability, and engagement within their sustainability portfolios.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
