While there has been a notable backlash agains ESG in recent months, CEOs, consumers and B2B buyers ‘remain committed to sustainability because of the value it delivers’, a new report by Bain & Company has found.
The third edition of Bain’s The Visionary CEO’s Guide to Sustainability indicates that while CEOs may speak less about sustainability today, they continue to act, and are moving away from viewing sustainability through a compliance or moral lens toward aligning it with business value.
The study analysed more than 35,000 CEO statements from 150 leading companies between 2018, 2022, and 2024 and revealed a shift in rhetoric – that sustainability is now being embedded into core business strategies.
‘Reality check’
“After the initial years of bold ambitions and target setting, CEOs took a reality check on their sustainability agenda last year,”commented Jean-Charles van den Branden, Bain’s global sustainability practice leader.
“Today, CEOs might speak less about sustainability but what they lack in words, they make up in action, a phenomenon we call the ‘do-say’ gap We have identified profitable decarbonisation levers ready for companies to power their net zero journey. To succeed, companies need to accelerate what already works, anticipate disruptions and build robustness.”
As the research noted, as much as 25% of industrial CO2 emissions can now be abated profitably, through initiatives such as energy efficiency improvements, circular design, and supply chain localisation, with the report recommending that CEOs ‘accelerate these levers’ promptly.
A further 32% of emissions reduction levers could become profitable in the medium term, it adds, depending on policy, technology, and consumer behaviour.
B2B and B2C
Elsewhere, among 750 global B2B customers, half report buying more from sustainable suppliers, Bain’s research found, with nearly 70% planning to increase these purchases within three years.
In the B2C space, meanwhile, some four out of five consumers continue to prioritise sustainability, with almost a third practicing six or more sustainable habits daily. However, for consumers, higher costs remain a barrier to action – while US consumers say that they would be willing to pay a 13% premium for more sustainable products, actual ‘green premiums’ average 28%.
“Our surveys find that more B2B buyers are sourcing for sustainable suppliers and B2C consumers care deeply about the issue and reward companies that make innovative, affordable, and sustainable products,” said van den Branden. “Another interesting observation this year is companies’ rising use of AI to deliver sustainable impact. Those that act sustainably do so because there are tangible returns.”
Another challenge consumers face is around transparency – while more than three fifths state that they feel confident identifying sustainable product options, most find it difficult to assess the carbon impact of daily decisions, such as transport methods. Nearly half cite a lack of clear information and transparency as a barrier.
“The message from this year’s report is clear – sustainability and business ambitions can grow in tandem,” van den Branden added. “And the leaders are those who can cut through the noise, stay focused on their agenda and act consistently.” Read more here.
