As inflation, regulatory complexity, and geopolitical instability continue to stretch corporate budgets, one area is proving unexpectedly resilient: sustainability. New research from the Institute of Sustainability and Environmental Professionals (ISEP) reveals that, far from retreating, many organisations are doubling down on sustainability investment, even in the face of economic headwinds. So, what’s driving this commitment, and what does it say about the evolving role of sustainability in business today? Read on as we unpack the findings and what they reveal about the shifting priorities and pressures shaping corporate sustainability.
Empower your teams to turn sustainability into a competitive edge and growth lever
Key findings: investment rises, remit expands
The survey drew insights from nearly 900 sustainability professionals and highlighted a strong business commitment to sustainability, even amid global uncertainty. Here’s a snapshot of the findings:
- Fewer than 2 percent of organisations reduced sustainability budgets in the past year.
- More than 40 percent increased their investment in sustainability initiatives.
- Two in three sustainability professionals now influence company strategy and research.
- One in three professionals is directly contributing to product and service innovation.
- 68 percent of professionals are embedded in risk management functions.
- In organisations decarbonising faster than their industry average, 80 percent cite active CEO support.
Moreover, despite positive trends in resourcing and remit, formal accountability mechanisms remain limited. Only 6 percent of professionals surveyed said that executive pay is tied to performance on sustainability targets. This disconnect signals a gap between aspiration and execution. As ISEP CEO Sarah Mukherjee explains, leadership support is critical, but without embedded governance structures like incentive-linked KPIs, sustainability risks being treated as optional rather than essential.
What’s driving business resilience on sustainability?
The durability of sustainability investment is being fuelled by a blend of external pressures and internal drivers:
- Net-zero policy acceleration: Global policy momentum is creating hard deadlines that require action across operations and supply chains.
- New regulatory frameworks: Mandatory disclosure on emissions, waste, and Environmental, Social, and Governance (ESG) is raising the compliance bar.
- Stakeholder scrutiny: Investors, customers, and regulators are increasingly evaluating companies on environmental performance.
- Operational value: Sustainability practices, like energy efficiency and circularity, are yielding measurable returns.
As ISEP Fellow Laila Takeh notes, sustainability professionals are increasingly seen not just as risk mitigators but as value creators who drive cost savings, innovation, and resilience.
Final thoughts
The ISEP findings offer a clear signal: despite global headwinds, sustainability investment remains a priority for many organisations. With a substantial portion of businesses increasing their budgets and very few scaling back, it’s evident that environmental and social performance are becoming embedded in mainstream business strategy.
Yet the findings also highlight critical disconnects, particularly the limited integration of sustainability into performance incentives and governance structures. With just 6 percent of organisations linking executive pay to sustainability targets, progress risks plateauing without stronger accountability. This is where many organisations find themselves today: committed in principle, but under-equipped in practice.
At ISS, we see this daily – businesses with bold ambitions but limited tools to act. Unlocking the full value of sustainability requires more than top-down support. It demands practical knowledge at every level, clear accountability structures, and function-specific skills embedded across the business. If you’re investing in sustainability, make sure that investment leads to impact, and one way to ensure that is through company-wide, practical sustainability training.
Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
