Sustainability under pressure: how polarisation is reshaping the agenda

Until recently, net-zero pledges and societal expectations around sustainability dominated the public debate. That has changed. Our analysis of 46,000 Western news reports shows: the sustainability sentiment has become more negative and polarised. Political soundbites increasingly focus on the cost of energy, competition and the administrative burden. At the same time, geopolitical challenges, economic uncertainty and the AI disruption demand attention. 

Despite this decline in sentiment and the growing polarisation of opinions, the economic value of sustainability remains indisputable. The climate challenge is not receding, and its impact on business models, supply chains and long-term value creation is increasingly important.  

Companies that recognize this reality are not waiting for regulatory mandates. They are acting independently, as highlighted in PwC’s Global Sustainability Reporting Survey 2025. Many organizations continue to adopt and report on sustainability frameworks, even in the absence of legal requirements, recognizing the business risks and opportunities at stake.

Reduced sustainability reporting standards in Europe and the US have eased administrative burdens for some companies. Yet, this shift also places greater responsibility on business leaders to act with foresight. In a less regulated environment, companies have the flexibility to allocate resources toward high-impact initiatives, but they also bear the risk of neglecting long-term risks and opportunities.

Where should businesses focus their efforts? We identify five key areas where you can use sustainability to drive value:

1. Value at risk: Understand and manage the financial, operational and supply chain threats, such as those from climate transition risks, to protect business value.

2. Energy strategy: Manage rising energy demand and modernise infrastructure to drive efficiency, reduce costs and ensure access to clean, secure energy.

3. Supply chain: Build future-ready supply chains that are resilient, cost-efficient, quality-focused, modern, transparent, traceable and compliant.

4. Tax credits and incentives: Unlock value through efficient and effective use of subsidies and incentives for technology and other investments to support sustainable growth.

5. Regulation and data: Keep pace with regulatory developments to protect long-term business value and prevent short-term operational disruptions, while integrating sustainability data for smarter business decisions.

View the need for sustainable action as a strategic opportunity, instead of a compliance exercise. So that you are better positioned to innovate, adapt, and thrive in a rapidly changing world. Now more than ever, it is time for business leaders to show resolve by defining your strategy, taking decisive action and capitalizing on the opportunities that the sustainability transition presents.