Navigating the ESG agenda: Strategies for uncertain times 

The ESG (Environmental, Social, Governance) landscape stands at a crossroads. Once marked by rapid momentum and clear regulatory direction, recent political, economic, and social headwinds are forcing companies to rethink, recalibrate, and reprioritise their sustainability metrics. Today, ESG leaders—across sectors and geographies—are being challenged to navigate an uncertain new reality, where operational pragmatism, business integration, and ecosystem engagement are the key to lasting value. 

“Sustainability is part of your business—it’s not just a separate agenda. Many of the initiatives you’re already doing are sustainability KPIs.” 

Current state of ESG: From momentum to pushback 

2025 has brought a distinct cooling of ESG enthusiasm, driven largely by: 

• Political backlash: Regulatory simplifications like the proposed “Omnibus” have raised thresholds for mandatory ESG disclosures and introduced voluntary reporting for EU mid-cap firms, reducing reporting bureaucracy by approximately 70%. Policymakers in the US are pivoting away from robust environmental policies in favour of traditional energy sectors (1).
• The rise of greenhushing: High-profile companies are quietly pulling back on ambitious ESG targets, delaying carbon goals, and scaling down DEI (Diversity, Equity & Inclusion) teams (2). Major banks in the US have withdrawn from global net-zero alliances, reflecting the pressure of shifting regulatory and political winds (3). 
• Investor focus shift: Support among asset managers for climate, human rights, and diversity initiatives has waned in several markets, notably in the US—though Europe’s investor community remains comparatively active (4). 

Why ESG remains the long game 

Despite turbulence, ESG drivers have never been more urgent — or more financially compelling. 

Record-breaking clean energy investment 

• Global investment in low-carbon energy tech surpassed $2 trillion in 2024, accounting for nearly two-thirds of total energy funding (5). 
• The sector saw an 11% year-on-year increase. Maturing innovations — renewables, energy storage, EV infrastructure — dominated with $1.93 trillion of the total. 
• Clean energy is not just a climate imperative; it’s a business imperative. 

Renewables: Cost-competitive & scaling fast 

• Wind and solar are now the cheapest power options in most world markets. 
• Solar panel costs have plummeted in just two years. 
• Renewable power capacity additions in 2024 hit 585 GW, driving 92% of all new global capacity (6). 

Risks of inaction: The cost of standing still 

The climate crisis compounds supply chain vulnerabilities and operational risk. World Economic Forum and BCG research suggests physical climate risks could impact company EBITDA by 5-25% depending on the scenario. Inaction could cost up to $120 billion by 2026, surpassing GDPs of entire nations. 

• Flooding in Belgium and the Netherlands (2021): Caused shipment stoppages of 26-32% (7). 
• Extreme weather in the US: Disrupted entire trucking sectors, causing downstream effects globally. 
• Social Risks: Human rights due diligence (modern slavery, child labour) is gaining regulatory traction, from Germany’s Supply Chain Act to similar laws in Canada and beyond. Reputational exposure and employee expectations around ESG are rising, particularly for Gen Z talent (8). 

How today’s uncertainty can be a catalyst 

Rather than seeing uncertainty purely as a threat, leading organisations are reframing the narrative: 

• Treat uncertainty as a strategic reset: Regulatory changes (like the Omnibus) are a prompt to revisit double materiality assessments and refocus ESG strategies on true value drivers. 
• Solidify ESG structures: Embed responsibilities for ESG into key teams (finance, procurement, H&S), avoiding isolated sustainability “silos.” 
• Prioritise no-regrets moves: Focus investment on initiatives delivering both compliance and immediate business value—energy efficiency, supply chain risk mapping, data-driven climate resilience. 
• Balance global compliance with local context: Interpret shifting laws and stakeholder expectations dynamically across markets. 
• Maintain value-driven communication: Don’t greenhush, be transparent, even as strategies evolve. 

Common pitfalls in ESG and practical reframes 

These pitfalls are universal — seen in centralised and decentralised organisations alike—and overcoming them rests on clarity, integration, iterative data use, and stakeholder empowerment. 

Operationalising ESG: From strategy to day-to-day excellence 

ESG excellence isn’t a side-project. It’s how competitive businesses now run. 

Step 1: Define clear, business-relevant priorities 

Use double materiality or adapted assessment to align ESG themes with enterprise value, risk drivers, and market opportunity. Focus on energy efficiency, supply chain resilience, or product innovation based on genuine business relevance. 

Step 2: Embed ESG in core business processes 

Don’t leave ESG to a dedicated team—integrate targets and KPIs into finance, procurement, product development, and HR. Assign clear responsibilities and ensure sustainability strategy sits at the heart of operational routines. 

Step 3: Use data-driven, iterative execution 

Start with pilot projects (for example, measuring Scope 3 emissions in one region or segment) to refine methods, secure early wins, and embed learnings across the organisation. 

Step 4: Rebalance investment logic 

Build pragmatic business cases—show how ESG initiatives cut costs, reduce risk, or open high-value market segments. Use “no regrets” moves to secure leadership buy-in and unlock funding. 

Step 5: Engage stakeholders early and broadly 

Bring in teams, suppliers, and even end customers from the outset. Co-creation workshops and internal ambassadors foster buy-in, surface risks, and accelerate adoption. 

Step 6: Integrate ESG into continuous improvement 

Make ESG a cycle—not a one-off project. Schedule regular reviews, adjust to shifting conditions, and continually refine your approach. 

Case studies 

Theory and strategy are only as powerful as their execution. Across industries, leading organisations are operationalising ESG by turning high-level principles into measurable, day-to-day outcomes. The following case studies highlight how pragmatic actions — tailored to unique sector risks and business realities — translate ESG ambition into tangible business resilience and long-term value. 

Sector: Food & Beverage 

Their ESG action: 

• In seven countries, BSR built a pilot framework assessing climate vulnerabilities in everything from ingredient sourcing to bottling and distribution. 

Operational impact: 

• Climate risks became integrated into enterprise risk management and local action plans, embedding resilience in procurement and logistics. 

Resilience result: 

• Improved ability to anticipate and mitigate failures, such as water scarcity and transport blockages (9). 

Sector: FMCG 

Their ESG action: 

• Collaborated with the EU-backed R3GROUP to digitally map suppliers and factory processes. 

Operational impact: 

• Digital twins predicted climate exposure (e.g., floods in supplier zones), enabling real-time production rerouting and schedule adjustments. 

Resilience result: 

• Able to shift manufacturing dynamically when Spanish suppliers faced drought risk—maintaining order fulfilment and reducing disruption (10). 

Sector: Industrial Real Estate 

Their ESG action: 

• Rolled out LED retrofits across 106 million sq ft of industrial space, standardising installation processes and occupancy sensor use. 

Operational impact: 

• Halved energy use in retrofitted sites, delivering both measurable resilience and cost efficiencies. 

Resilience result: 

• Achieved 98,400 MWh in annual energy savings and avoided ~43,453 t CO₂ (comparable to carbon sequestered by 43,586 acres of U.S. forests) (11). 

These practical examples underscore a vital truth: targeted, well-integrated ESG frameworks not only mitigate risk and reduce costs—they position organisations to thrive amid uncertainty, shaping a more resilient and sustainable business future.  

Conclusion: ESG Is Here to Stay — Time to lead with pragmatism 

Despite short-term pushback, the ESG agenda is not going away. Regulation may ebb and flow, and political priorities may shift, but the systemic drivers—climate volatility, market competition, evolving stakeholder demands—only underscore the business case for sustainable transformation. 

This is the moment to move from “doing less harm” to creating positive, shared value. Organisations that adopt a systemic (not siloed) approach, stay pragmatic in their operations, and engage their entire ecosystem will not only weather uncertainty, but emerge more adaptable and future-fit. 

Are you ready for the next sustainability rebound? Start today — revisit your priorities, integrate for the long term, and shape a resilient, value-driven business. 

Why partner with Nexio Projects?

At Nexio Projects, we help organisations turn sustainability ambition into action. As your dedicated ESG strategy and reporting partner, we simplify complexity and support you in meeting today’s regulatory demands—while positioning you for long-term impact.

Recognised expertise, real-world results

Ranked among the world’s top 10 boutique sustainability consultancies by Verdantix, Nexio Projects provides tailored guidance across the ESG landscape. Whether you’re navigating CSRD, developing a double materiality assessment, or preparing for assurance, our multidisciplinary team is here to support you every step of the way.

Trusted by industry leaders

• Strategic EcoVadis partner since 2018
• Certified B Corp and B Corp Way partner since 2019
• In-house team of ESG specialists and certified B Leaders
• Deep expertise in CSRD, ESRS, GRI, TCFD, and more
• 400+ clients | 1000+ projects | 25+ sectors | 20+ countries

From materiality to metrics, and strategy to storytelling, we help you report with confidence and lead with purpose.

Looking to future-proof your ESG strategy? Contact Nexio Projects for ESG reporting services or download our latest guides on corporate sustainability reporting, data collection, and supply chain decarbonisation. 

References:

1. The Guardian (2025) ‘Support for ESG proposals at record low driven by US investors, report shows’, The Guardian, 18 February. Available at: https://www.theguardian.com/business/2025/feb/18/support-for-esg-proposals-at-record-low-driven-by-us-investors-report-shows (Accessed: 25 July 2025).
2. Harvard Business Review (2024) Companies are scaling back sustainability pledges. Here’s what they should do instead, 20 August. Available at: https://hbr.org/2024/08/companies-are-scaling-back-sustainability-pledges-heres-what-they-should-do-instead (Accessed: 25 July 2025).
3. The Conference Board (2025) Sustainability under scrutiny 2025. Available at: https://www.conference-board.org/press/sustainability-under-scrutiny-2025 (Accessed: 25 July 2025).
4. The Wall Street Journal (2025) ‘Support among asset managers for investor action on climate, DEI falls’, The Wall Street Journal. Available at: https://www.wsj.com/articles/support-among-asset-managers-for-investor-action-on-climate-dei-falls-5cd638a1 (Accessed: 25 July 2025).
5. BloombergNEF (2025) Global investment in the energy transition exceeded $2 trillion for the first time in 2024, according to BloombergNEF report. Available at: https://about.bnef.com/insights/finance/global-investment-in-the-energy-transition-exceeded-2-trillion-for-the-first-time-in-2024-according-to-bloombergnef-report (Accessed: 25 July 2025).
6. International Energy Agency (2024) World energy investment 2024: Overview and key findings. Paris: IEA. Available at: https://www.iea.org/reports/world-energy-investment-2024/overview-and-key-findings (Accessed: 25 July 2025).
7. Nature (2024) ‘Title of article’, Nature. doi: 10.1038/s41586-024-07147-z (Accessed: 25 July 2025).
8. Reuters (2024) ‘Labor rights seeing increased enforcement throughout global supply chains’, Reuters, 18 September. Available at: https://www.reuters.com/legal/legalindustry/labor-rights-seeing-increased-enforcement-throughout-global-supply-chains-2024-09-18 (Accessed: 25 July 2025).
9. Business for Social Responsibility (BSR) (2018) The Coca‑Cola Company: Building a climate‑resilient value chain. Available at: https://www.bsr.org/en/case-studies/the-coca-cola-company-climate-resilience (Accessed: 25 July 2025).
10. Wired (2025) ‘The climate crisis threatens supply chains. Manufacturers hope AI can help’, Wired, 2 May. Available at: https://www.wired.com/story/manufacturers-hope-ai-will-save-supply-chains-from-climate-crisis (Accessed: 25 July 2025).
11. Link Logistics Real Estate/Blackstone (2024) Sustainability Case Study Series: Scaling LED capabilities. Available at: https://www.linklogistics.com/news/research/scaling-led-capabilities (Accessed: 25 July 2025).