Anyone working in the impact, purpose, or sustainability space knows that 2025 is already threatening to turn into to be what our late Queen might have called an annus horribilis. The combination of the Trump Administration’s crackdown on the so-called ‘woke’ agenda – leading to a wave of corporate retreats from #DEI and climate commitments in the US – alongside this week’s cowardly EU #omnibus climb-down in the EU’s progressive Green Taxonomy and regulatory agenda – has sent waves of panic and despair through our often insular, echo-chambered community here in the UK.
Meanwhile, in a parallel universe, those in the ‘purpose-led’ business community are poised to welcome the new, improved, distinctly more stringent set of #bcorp certification standards due out imminently. The irony that are largely designed to be ‘ESRS aligned’, and are heralded by B Lab as bringing in a new era of social and environmental standards that raise the bar further and ‘reshape how business operates’ Iis not lost.
For those of us seasoned enough to recall previous waves of backlash against corporate and political sustainability movements- think 2008 or 2013/14- this moment might feel like déjà vu. We remember dusting off our ‘business case for corporate sustainability’ PowerPoints, bracing for another round of justifying the need to take account of scientific facts. Perhaps this experience allows us to approach the current reactionary wave with a steadier hand, rather than alarm.
So, what do the 40k odd businesses that were preparing to report under CSRD /CSDDD and have likely already spent hundreds of man days and tens if not hundreds of thousands investing in advice, systems and data collection in order to align with the new regulations do now?
And how do those of us working to support those businesses in their sustainable transition stay focused on driving the change we know is needed, without getting distracted by the noise?
A Doubling Down
Well, one thing is for sure. These times will only turn from exasperating into disastrous if we lose sight of the big picture and allow ourselves to get knocked off course from our North Star – a safe, liveable and thriving society and planet.
Whilst some boards will no doubt use this moment of U-turning into an opportunity to throttle back their spend and focus on what they may see as ‘ESG Compliance’, the more astute business leaders will be breathing a sigh of relief that they can now use this time to really finesse and embed a more context-based approach to driving change inside their organisations. Change which let’s not forget is going to make their businesses more resilient, less open to risk, more robust and above all, future-fit.
Those businesses that use this time to clean up their value chains, secure green bonds to fund their transition to Net Zero, and continue to nurture and grow an inclusive, high-performing workforce, will reap the competitive benefits in the longer term.
And, if there is one good thing emerging from this latest tirade against ‘wokeism’ and ‘over-regulation’ (for which read ‘regulation with teeth) it is that it forces us in the sustainability bubble to take real accountability for the counsel we give and ensure we keep the compelling data and narratives that align with business imperatives at our fingertips
So those of us operating in an advisory capacity, we need to position the future-fit agenda- one that embraces regeneration, inclusivity, and sustainability—within a clear commercial context. Many business leaders operate in a fundamentally transactional mode, and our messaging must reflect that reality.
That means rethinking our language. Framing sustainability as simply ‘the right thing to do,’ or relying on vague calls for businesses to ‘create positive impact’ and ‘take responsibility,’ has consistently failed to deliver the scale of change the world urgently needs. And in today’s highly politicised climate, it certainly won’t cut through the corporate armoury.
Instead, we must lead with indisputable scientific, commercial and economic realities, such as:
- The existence of planetary boundaries that necessitate climate adaptation for businesses to ensure continued operation.
- The competitive advantage in the ongoing war for talent through inclusive hiring and workplace practices.
- The need to secure global supply chains by mitigating risks such as human rights abuses, resource scarcity, and geopolitical instability.
The direction of travel stays the same
A sustainable business is one that serves the world’s needs recognises its impact and actively works to neutralise it – not out of altruism, but as a core survival strategy. To realise this goal, organisations must cultivate a strong, guiding set of beliefs that informs its daily actions and binds its people together with a shared sense of purpose.
This approach is not for the faint-hearted. It’s for companies willing to stick to their values and play the long game. Because one thing we know from observing historical cycles of corporate behaviour, is that although language and fashions in business concepts may come and go, the direction of travel stays the same.
Ultimately investors, employees and customers all want the same things – accountable, resilient, risk-managed businesses with a clear and consistent underlying culture that all their stakeholders understand and recognise.
Companies that fail to grasp this reality – those that continue to ignore the rapidly changing world around them and were only ever seeing regulatory compliance as a tick-box exercise – will ultimately see their revenue streams dry up and their workforces churn.
Meanwhile, businesses that build value beyond simply financial returns, in true alignment with the physical and social realities of our time, will be the only ones left standing.
And we may see fewer companies reporting under CSRD and fewer certifying as B Corps, but at least we will be able to tell the authentics from the fakes.