The Conference Board recently reported that the number of Russell 3000 companies issuing sustainability reports in the first half of 2025 fell 52% compared to the first half of 2024. The report attributes much of this drop to the complex and shifting global regulatory landscape, citing the European Union’s Corporate Sustainability Reporting Directors (CSRD) and California’s climate disclosure laws (SB 253 and SB 261), which are set to take effect in the next one to two years. According to the report, many companies are delaying voluntary reporting while they assess how to comply with these mandatory regulations. The report also cites the evolving policy environment in the U.S. as a factor contributing to the pause, noting that some companies, particularly those in politically charged sectors, are scrutinizing their language and subjecting their disclosures to more rigorous legal and compliance reviews. Despite this drop (or delay) in reporting, a recent survey by Morgan Stanley of over 300 private and public companies across North America, Europe and APAC, found that 88% of companies globally see sustainability as a way to create long-term value and over half of businesses reported adverse business impacts from climate events in the past year, with 80% preparing to increase resilience in the future. Also, a recent survey by EcoVadis of 400 executives at U.S. companies with over $1 billion in revenues in industries ranging from consumer and industrial, to technology and services found that sustainability-related spending remains on track, with 87% of executives reporting that they are either maintaining or increasing investments in business sustainability in 2025, while only 7% report cutting back on these investments.
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