ERM’s quarterly trends report delivers a clear, up‑to‑date overview of the top sustainability issues shaping private-sector strategy. In this edition, we explore four critical corporate sustainability macrotrends that are driving executive decision‑making today.

Trends include: 

Companies move to bolster supply chains in the face of global trade disputes  

  • Escalating trade disputes: U.S. tariffs and target country responses escalate global trade disputes. 
  • Companies feel the effects of trade tensions: Intensifying trade measures and uncertainty about what’s next influence corporate financial outlooks. 
  • Supply chain strategies evolve: Companies are bolstering their supply chains to mitigate trade-related risks.  
  • U.S. clean energy likely to be hard hit: The U.S. clean energy industry is likely to be negatively affected by trade disputes because of insufficient domestic manufacturing capacity. 

Investors wrestle with how to evolve sustainable finance approaches

  • Shrinking net zero finance alliances: Numerous influential financial institutions left UN-convened net zero alliances, lessening their influence and forcing these groups to consider changes.  
  • Push and pull dynamics create tension: While financing organizations face pressure to stand by sustainability commitments, regulatory changes make some sustainable finance activities more difficult.  
  • New sustainability-aligned finance initiatives emerge: Recent announcements show financial sector and government actors’ continued commitments to sustainable finance.  

Climate targets get a second look as companies take stock of progress and business landscape

  • Companies reassess and adjust climate targets: Many companies globally are reevaluating their climate targets as the business landscape shifts, with some scaling back or delaying commitments.
  • Others reiterate climate commitments: Despite some companies changing their climate ambitions, others are reiterating their commitments to climate action, emphasizing its long-term economic and operational benefits.
  • Target changes likely to face mixed reactions: Companies that change their climate targets will likely face both positive and negative reactions, while companies that fail to meet targets may face few consequences.  

Companies shift focus towards business imperatives in new era for corporate sustainability

  • Companies still value sustainability: Despite political and economic uncertainty, there are signs that companies continue to value sustainability.
  • A refocus on business imperatives: Companies are adapting their sustainability efforts to better align with business imperatives and drive both sustainability and financial benefits.
  • EU policies could serve as action catalysts: Changes to EU policies like the Omnibus and Clean Industrial Deal are likely to help companies better align their sustainability initiatives with business imperatives.

Our Quarterly Trends Update is a must‑read for business leaders seeking insight into the strategic impacts of today’s sustainability landscape.

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