While political pushback against ESG grows louder, companies are quietly doubling down on sustainability. A new survey by EcoVadis shows rising investment, even as public disclosure fades from view.
Executives Shift From ESG Noise to Operational Focus
While public discourse around ESG has grown more contentious, internal investment tells a different story. According to EcoVadis’ 2025 U.S. Business Sustainability Landscape Outlook, 78% of companies have maintained or increased their sustainability spending this year. But nearly a third of executives say they’re pulling back on public disclosures, a trend known as “greenhushing.”
This posture reflects both reputational risk aversion and a deeper shift toward viewing sustainability as a performance lever rather than a marketing initiative. 65% of respondents now see sustainable supply chain practices as a competitive advantage. Among finance leaders, over half cite it as a growth driver, positioning sustainability alongside cost discipline and risk mitigation in the C-suite playbook.
Even amid broader ESG fatigue, companies fear the implications of weakened oversight. Nearly half of C-level executives believe that eliminating ESG regulations would trigger more supply chain disruption. They point to erosion in data quality, diminished supplier accountability, and heightened risks of labor abuse, especially in multi-tier networks where visibility is already limited.
Compliance Readiness Lags
Despite growing urgency, most companies are not prepared for the wave of ESG regulations taking effect. Just 13% are currently on track to meet compliance deadlines for major frameworks including the EU’s CSRD and CBAM, California’s SB-253, and Canada’s Modern Slavery Act. Many are still in the early stages of data collection, or waiting to see if enforcement timelines shift.
This compliance gap is pushing technology higher on the sustainability agenda. A third of executives admitted to submitting estimated ESG data that may not be fully accurate. Yet rather than signaling disregard, this disclosure underscores the infrastructure challenges companies face. In response, 89% are planning further investment in ESG data systems over the next year.
The most commonly adopted tools include ESG risk mapping platforms (57%), supplier engagement systems (49%), and on-site audit solutions (32%). These investments aim to close traceability gaps and replace ad hoc reporting with continuous risk monitoring, particularly as financial stakeholders demand tighter ESG assurance.
Sustainability’s Next Chapter Will Be Quietly Engineered
The prevailing narrative suggests ESG is under retreat. But beneath the political surface, supply chain sustainability is being reengineered, not as a virtue signal, but as an operational system. As regulations multiply and data expectations harden, the quiet transformation underway will increasingly define who is resilient and who is exposed. Strategic advantage will not come from louder claims, but from deeper, verifiable control.