New research from the Center for Sustainability and Excellence (CSE) has claimed there is a 92% correlation between medium-to-high ESG ratings and financial success.
The group’s 2025 Annual Research Results examined the performance of 210 top-performing firms in North America across 21 sectors, including those that aligned with global standards like GRI, SASB, and TCFD.
It revealed widespread adoption of ESG measures, with 87% of companies using the GRI framework, two-thirds (63%) using TCFD for climate-related disclosures, and 56% implementing SASB guidelines.
Decarbonisation challenge
At the same time, decarbonisation remains a challenge among the companies assessed, with two thirds (67%) lacking formal decarbonisation targets, and just one in eight (12%) having made commitments to achieve net-zero emissions by 2050.
Elsewhere, the study noted that ESG-linked incentive bonuses for executives are gaining traction in the U.S. and Canada, ’emphasising leadership’s role in driving sustainability progress’, while also highlighting the increasingly influence of EU legislation, such as the Corporate Sustainability Reporting Directive (CSRD), on over 8,000 North American companies.
“The findings of our 2025 research make it clear: Sustainability isn’t just an ethical obligation—it’s a necessity that positively influences financial results and corporate values,” commented Nikos Avlonas, president of CSE.
ESG accountability in Canada
In a separate report, CSE noted that real-time sustainability reporting is transforming how Canadian businesses approach ESG accountability.
AI-driven platforms are playing a crucial role in this shift, by streamlining ESG data collection, processing, and analysis. Companies are turning to IoT sensors and smart meters to track energy consumption and emissions, while machine learning algorithms enable them to better analyse data patterns and generate reports, it noted.
‘The future of ESG transparency lies in real-time sustainability reporting,’ CSE noted. ‘By leveraging AI and automation, Canadian businesses can ensure compliance, enhance investor confidence, and improve operational efficiency. More importantly, transitioning to real-time ESG reporting fosters corporate responsibility and strengthens long-term sustainability strategies.’ Read more here.
