More than 80% of companies have continued to increase their sustainability-related investments over the past year, despite experiencing reduced pressure from some stakeholder groups. Executives report seeing tangible benefits from these actions, including revenue growth and cost reductions, according to a survey by global professional services firm Deloitte.
The survey, part of Deloitte’s 2025 C-suite Sustainability Report, involved over 2,100 C-level executives across 27 countries, representing a variety of industries and enterprise sizes, from $500 million in revenues to over $10 billion.
Climate change and sustainability remain top priorities for companies, with 45% of respondents identifying them as the most pressing challenges for the next year. This slightly exceeds the focus on technology adoption and innovation at 44% and the economic outlook at 38%.
The survey reveals that 83% of companies increased their sustainability investments by more than 5% over the past year, with 14% reporting increases of over 20%. Larger companies, particularly those with revenues exceeding $10 billion, were more likely to report significant investment increases, with 22% of such companies increasing investments by more than 20%.
Interestingly, companies are increasing sustainability-related investments even as they report slightly less pressure from some stakeholder groups, and some encounter anti-ESG pushback. While 81% of executives still feel pressure to enhance sustainability efforts, specific group pressures have declined. For instance, only 58% reported pressure from regulators and governments, down from 77% in 2022, and 58% from shareholders and investors, compared to 71% in 2022. Notably, 28% of respondents feel pushback against climate action and ESG.
Executives also appear less concerned about climate change impacts on their businesses, with 60% believing it will affect their company’s strategy and operations to a high or very high extent over the next three years, down from 70% last year.
Despite reduced shareholder pressure, sustainability investments continue to grow, with executives citing significant benefits. Revenue generation was the most frequently reported benefit, cited by 66% of respondents, followed by regulatory compliance and governance at 61%, brand and reputation at 60%, risk and resiliency at 55%, and cost reduction at 55%.
Few executives reported broader market conditions causing reductions in sustainability actions. Only 14% cited a changing regulatory and policy environment causing reductions, while 33% said it led to a significant increase in sustainability actions. Similarly, just 13% said investing in new technologies like AI reduced sustainability actions, while 37% reported a significant increase due to such investments.
The implementation of technology solutions was the top sustainability action, cited by 46% of respondents, followed by using more sustainable materials and decreasing operational emissions through efficiency, both at 45%, and tracking environmental metrics at 44%. There is less focus on external initiatives, with only 35% engaging in lobbying or political donations for environmental causes, down from 44% last year, and 38% requiring suppliers to meet specific sustainability criteria, down from 47%.
Executives report common areas for implementing technology solutions to achieve sustainability goals include process efficiency at 55% and internal sustainability data monitoring at 54%. Other areas include managing supply chain environmental performance at 53%, developing new sustainable products or services at 52%, and external sustainability data reporting at 49%.
The use of AI for sustainability is widespread, with 81% of executives indicating its use in their companies, and another 16% planning to adopt it within the next year. Key AI applications include finding efficiencies and reducing emissions, cited by 65%, monitoring data for reporting at 58%, and risk mitigation through scenario modeling at 53%. Additionally, 52% use AI to develop new sustainable products or services.
Jennifer Steinmann, Deloitte Global Sustainability Business Leader, stated: “Forward-thinking leaders have an opportunity to assess whether their sustainability strategy and investments are integrated with key performance drivers, material risks, and strategic priorities—helping ensure they continue delivering value and operational resilience into the future.”
For more information, access the [Deloitte survey](https://www.deloitte.com/global/en/issues/climate/c-suite-sustainability-report.html).
