Global Corporate Sustainability Overview: Why Giants Are Falling Short?

Over the past few years, a growing number of major corporations from the West have begun scaling back their sustainability commitments. From financial institutions like HSBC and Goldman Sachs to energy giants like BP and Shell to retail firms like Crocs and Nike, companies that once made bold pledges to reduce carbon emissions and integrate ESG (Environmental, Social, and Governance) principles are now re-evaluating their strategies. This shift is driven by financial pressures, shifting political priorities, investor scepticism, and challenges in achieving net-zero targets. While some businesses are recalibrating unrealistic goals, others are downscaling due to unavoidable constraints.

A key factor influencing this shift is the political landscape in the United States, which has complicated sustainability efforts. Under the previous Biden administration, policies favoured corporate climate action, with incentives for clean energy investments and regulatory frameworks pushing companies to adopt ESG initiatives. However, with Donald Trump returning to office, there has been a clear shift in priorities. His administration has rolled back climate regulations, eased restrictions on fossil fuel investments, and deprioritised ESG initiatives. This has reduced the urgency for Western businesses to align with ESG targets, and many financial institutions have withdrawn from net-zero coalitions. At the same time, ESG investment funds, which once attracted significant capital, have underperformed compared to traditional funds. Investors, seeking stronger returns, have pulled back from ESG-focused portfolios, leading many companies to question their financial viability.

However, while some U.S. companies are retreating, the global sustainability movement is far from collapsing. In Europe, the commitment to sustainability remains strong. The European Union continues to implement strict regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM), ensuring that companies remain accountable for their emissions. European investors also remain committed to sustainable finance, driving businesses to maintain their ESG commitments despite economic uncertainties. Beyond the West, emerging economies from the Global South (BRICS and ASEAN nations) are stepping up their sustainability efforts. China, for example, is leading in renewable energy investments, accounting for nearly half of global solar and wind power capacity additions. Meanwhile, India is expanding its clean energy infrastructure, targeting 500 GW of renewable capacity by 2030. ASEAN nations are integrating green finance into their economic plans, with countries like Malaysia, Indonesia, and Vietnam committing to phasing out coal and investing in sustainable energy.

This global shift in sustainability highlights a nuanced reality—while some Western corporations, particularly in the U.S., are pulling back due to political and financial pressures, other regions are pushing forward with renewed commitments. Europe continues to set the regulatory benchmark for corporate sustainability, ensuring that businesses remain accountable for their environmental impact. Meanwhile, emerging economies in BRICS and ASEAN are integrating sustainability into their economic growth strategies, investing in renewable energy and green finance to drive long-term development.

Rather than signalling the decline of sustainability, these changes reflect an evolving global landscape where businesses must adapt to shifting policies, investor expectations, and economic realities. Companies that refine their sustainability strategies—by setting realistic goals, fostering transparency, and embracing emerging markets’ green transitions—will remain competitive in an increasingly climate-conscious world.

For professionals looking to develop expertise in sustainability and drive impactful change within their organisations, the Certified Sustainability Professional (CSP) Programme offers practical strategies and insights. This training equips participants with the tools to navigate the evolving ESG landscape and implement sustainability initiatives effectively. Register today to stay ahead in corporate sustainability by clicking here