Sustainability experts see positive developments but warn of backlash

New legislation, such as the SEC climate disclosure rules and EU Green Deal, is the top sustainability development during the last 12 months, but experts warn of a sustainability agenda backlash, according to research from specialist sustainability consultancy ERM and consultants GlobeScan. According to the Sustainability Leaders 2024 Survey, a third of global sustainability experts (33%) point to legislative action as the top sustainability breakthrough, while new sustainability disclosure standards are cited by a fifth (19%). Action around climate & nature and renewables & low-carbon initiatives are considered the most significant developments by 13% and 9% of sustainability experts, respectively. However, despite these positive developments, more than half of sustainability experts surveyed (57%) claim there is a significant backlash against the sustainability agenda (including ESG), with 83% of North American experts saying this is the case, and 59% of those in Europe. Fifty-two percent of the experts surveyed globally believe this backlash will slow the transition to sustainability in the next few years. Experts in the survey continue to rate climate change as the most urgent sustainability challenge. Related issues of biodiversity loss, deforestation, and water scarcity are also seen as being among the most urgent sustainability issues, while the perceived urgency of food security and water pollution has increased compared to 2023. “While climate continues to be identified as the most important sustainability challenge, new factors are influencing the way respondents answer the survey. Experts agree that the expansion of sustainability-related legislation and regulation, along with the creation and uptake of frameworks and standards, are the most positive developments in the sustainability landscape over the past year,” the survey stated. It added: “The research also identifies significant pushback against sustainability and ESG that some say is hindering progress. This pushback is most concentrated in North America, while other regions report less resistance to efforts to advance sustainability.” The survey found that Northern European countries are the most recognised leaders in advancing the sustainability agenda, with Sweden named as the leading national government by 28% of experts, followed by Germany, Denmark, Norway and Costa Rica. The World Wildlife Fund continues to be the most recognised NGO and is cited as a leader on sustainable development by 40% of respondents. As for companies, more than a third of experts (34%) named Patagonia as a corporate sustainability leader, followed by Unilever (24%). The top tier of most-recognised sustainability leaders also included Natura &Co, IKEA, Interface, Danone, Nestlé, Microsoft, Ørsted, Schneider Electric and Tesla. Forest products and life sciences are the sectors rated most positively in terms of how they are managing the transition to sustainability, while the chemicals and extractive sectors are seen to be performing worse than they did a decade ago, the survey found. ERM said: “Experts continue to emphasise the importance of sustainability integration and demonstrating real impacts and action as reasons a company is seen as a sustainability leader. However, experts are also increasingly recognising the importance of focusing on the supply chain (scope 3) – it is the only driver of leadership with a significant increase in mentions this year.” Mark Lee, global director, thought leadership at ERM said: “The sustainability landscape is continuing to shift, with significant progress around legislation and disclosure tempered by concerns around the sustainability backlash. However, despite the uncertain environment, there is widespread evidence of positive momentum for sustainability leadership across sectors, and we look forward to seeing these leaders continue to forge a path forward in pursuit of their sustainability goals.” Chris Coulter, CEO of GlobeScan said: “Expanding sustainability-related legislation and standards is clearly viewed as a critical development according to the hundreds of expert stakeholders we surveyed across the world. To stay at the forefront, leading organisations must transform compliance into concrete actions that drive meaningful impact. The evolving sustainability landscape requires a collaborative, innovative approach from governments, NGOs, and corporations.” ERM said the survey “captures the perspectives of hundreds of sustainability experts worldwide on the priorities and forces shaping the sustainable development agenda”. The survey explores sustainability leadership across governments, NGOs, and companies, and includes responses from approximately 500 sustainability experts across more than 60 countries.

Sustainability experts see positive developments but warn of backlash

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