Why 2026 Could Mark a Turning Point for Sustainability

The ERM Sustainability Institute’s report highlights a concrete paradigm shift for sustainability that will continue in the coming months amid geopolitical pressures, energy challenges, and digital transformation.

From sustainability as a lever for value to the growing energy complexity, to the integration of artificial intelligence and the centrality of environmental, social, and governance data: these are the directions that will guide corporate strategies in 2026. This evolution marks the definitive shift of ESG issues to an operational cornerstone of industrial models. And not to comply with increasingly lax regulatory requirements, nor to improve one’s reputation, but because it pays.

It pays, especially in a time of crisis, to seek new and more efficient alternatives. It pays, knowing that the impacts of climate change and war are inevitable, to reduce risks and improve internal and supply chain knowledge.

Specifically for this reason, the integration of innovative, data-driven solutions and a reorganization of methods and functions will guide strategies in 2026. This is what emerges from the ERM Sustainability Institute’s 2026 Annual Trends Report , which states that the next twelve months will consolidate the shift in sustainability: from a captivating declaration of intent to a concrete source of value creation for the company.

Moreover, as early as 2025, the advisor points out, citing a Deloitte study, 83% of companies have increased spending on sustainability, with the aim of generating revenue and strengthening resilience in a context marked by political volatility, trade tensions, and economic uncertainty.

The report describes 2026 as a year of “competitive pressures and new approaches,” in which companies do not slow down on ESG objectives, but integrate them ever more deeply into the fundamental logic of their business.

Sustainability that generates value

The most obvious transformation concerns the role of sustainability within corporate strategies. It’s no longer a cost or reputational constraint, but a true commercial driver. According to data from a global survey by HSBC , 95% of companies now consider sustainability a business opportunity, while 99% expect a competitive advantage in the next three years.

This paradigm shift is driven by concrete factors . Trade tensions have generated over $1.2 trillion in additional global costs by 2025, pushing companies to seek efficiencies and new sources of value. In its 2026 outlook, ERM summarizes several international studies from the past year to highlight how this paradigm shift towards sustainability is already underway, despite the apparent headwinds regarding environmental, social and governance issues.

For example, in 2025, 77% of institutional investors focused their attention on ESG issues with direct financial impact , while 82 % of companies declared economic benefits from decarbonization , with returns exceeding 10% of revenue in some cases. A quest for sustainability, therefore, not linked to regulatory compliance or fashionable trends, but rather to the need to innovate and seek alternative paths in a time of global crisis.

At the same time, sustainability is becoming a critical factor in large industrial and infrastructure projects. Delays related to permits, community opposition, or environmental impacts can result in millions of dollars in losses, pushing companies to integrate social and environmental considerations from the initial stages to ensure timely and profitable investment returns. In this case, integrating ESG considerations means being ready and turning risks into levers of value.

According to ERM, “it’s not just about mitigating risks” (consider that in 2024 alone, the physical impacts of climate change will have cost the global economy at least $1.4 trillion, 10 times more than in 2000, in addition to the fact that if CO2 emissions continue on this trajectory, climate change could reduce global GDP by $2.3 trillion by 2050), but also about exploiting the economic benefits: climate change itself is generating new markets, with over $1.2 trillion in revenues already tied to adaptation solutions and growth prospects of up to $4 trillion by 2050.

“Environmental and social performance is increasingly recognized as a key driver of capital project success, and to do so, companies must fully leverage sustainability data,” ERM notes.

Energy: Complexity Grows as Demand Rises

The second major trend concerns energy , currently at the center of unprecedented complexity, fueled by geopolitical dynamics, growing demand, and market volatility. Global energy demand is growing rapidly, +2.2% in 2024 , while energy investments are expected to reach a record $3.3 trillion in 2025.

In this scenario, companies and governments are adopting pragmatic and diversified approaches, abandoning one-way visions. “All-of-the-above” strategies, combining renewables, gas, nuclear, and emerging technologies, reflect the need to ensure operational continuity and economic competitiveness without compromising decarbonization goals.

At the same time, there is growing attention to the resilience of energy infrastructure . With electricity demand expected to grow by up to 30% by 2035, companies are increasingly investing in decentralized solutions such as microgrids and storage systems to avoid and address potential disruptions and tensions in the supply chain.

Digital: Challenges and Opportunities in the Data Age

Digital transformation introduces new opportunities, but also new challenges for sustainability.

The expansion of artificial intelligence and cloud services is fueling unprecedented growth in data centers, essential but highly energy-intensive infrastructure. Energy and water availability is already a limiting factor for the development of new facilities, while local communities are increasingly concerned about environmental impacts.

In this scenario, sustainability is becoming an increasingly crucial factor for digital development. Operators are investing in more efficient cooling systems , dedicated energy sources, in some cases even nuclear, and innovative solutions to reduce environmental impact.

At the same time, technology is also part of the solution. Artificial intelligence is increasingly being used to improve operational efficiency , strengthen the quality of ESG data , and make reporting along the supply chain more transparent . In this sense, sustainability in the digital age is seen as a pendulum swinging between impact and opportunity.

EHS Transformation: From Compliance to Performance Leverage

The latest trend highlights a profound transformation of EHS (Environment, Health & Safety) functions , which are moving from a compliance role to a strategic lever for value creation.

In an environment characterized by growing climate, regulatory, and geopolitical risks, companies are reviewing their organizational models to make these functions more integrated and performance-oriented. The adoption of centralized models, the use of digital tools, and data integration allow for improved efficiency and reduced costs, while also meeting increasingly stringent regulatory requirements.

There is also growing attention to managing environmental risks , such as PFAS contamination or the decommissioning of obsolete facilities. In these areas, an increasingly holistic and strategic approach is emerging, combining cost and reputational impact mitigation, climate resilience, and attention to social implications.

ESG data: towards “investor-grade” standards

Finally, the report highlights growing pressure on the quality of sustainability data . With the expansion of regulations like the CSRD in Europe and new global standards, companies must produce increasingly reliable, comparable, and verifiable information.

It’s no coincidence that over 90% of global capitalization publishes ESG data , and 73% of large companies use assurance systems . Sustainability data and reporting can generate a return of up to 21 times the investment.

At the same time, the risk of greenwashing is growing : more than 2,700 global legal cases linked to environmental claims demonstrate that credibility is now a critical factor.

Overall, the ERM Sustainability Institute report paints a picture of sustainability increasingly less separated from business and increasingly integrated into its core logic. In a world marked by uncertainty and rapid transformation, companies are not retreating, but evolving: sustainability is becoming a tool for competing, innovating, and creating long-term value.

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(Featured image by Thirdman via Pexels)

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