The private sector is likely to take over from government regulation as the key driver of sustainability initiatives in 2026, according to a new report by CSO Futures.
According to the CSO Futures 2026 Predictions Report, increased demand from consumers, coupled with the need for industry to be more resilient, are likely to be the key motivating factors prompting businesses to be more sustainable.
At the same time, the US continues to ‘push back’ on sustainability reporting regulations, while regulatory momentum is similarly slowing in Europe, the group notes.
As the report suggests, current geopolitical trends could have a galvanising effect, encouraging greater investment in sustainable initiatives as heightened uncertainty leads firms to seek greater resilience.
Corporate transformation
“Regulatory news may have given the impression that sustainability was being put on the backburner this year, but those leading the corporate transformation are anything but disheartened,” commented Melodie Michel, CSO Futures’ chief reporter and author of the report.
“Extreme weather events and geopolitical uncertainty are forcing firms to face their vulnerabilities, and sustainability data and innovation have never been more advanced. Companies should leverage their chief sustainability officers’ expertise, adaptability and influence in 2026: no one is better placed to help them stay relevant in an uncertain world.”
Other predictions outlined in the report include the growing use of data and technology – particularly AI – to reduce reporting workloads, identify areas of improvement, and improve transparency across the business environment.
Sustainability ROI
The coming year is also likely to see a heightened focus on ‘sustainability ROI’, as business leaders uncover ways to translate concepts such as ‘net zero’ and ‘climate resilience’ into commercial benefits and financial returns.
CSO Futures also anticipates a rationalisation of climate-focused reporting, with companies shifting from ‘reporting for reporting’s sake’ to reporting that focuses on the most material data and stakeholders.
“While regulation remains important, many sustainability leaders in the CSO Futures community will not mourn the reduction in government tick-boxing as it allows them to focus on initiatives that make a real difference to their customers, business resilience and the future of our planet,” added CSO Futures CEO Daryl Willcox.
Established in 2023, CSO Future is a publishing, community and events hub for senior sustainability leaders in large organisations, serving organisations across Europe and beyond. Read more here.
