Sustainability stays top of mind for executives

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Business executives are still prioritizing and pushing forward sustainability initiatives, according to a recent Deloitte survey, despite reduced pressure from shareholders on, and increased hostility from the Trump administration to, ESG initiatives.

In a survey of more than 2,100 C-suite executives, Deloitte found that for the fourth consecutive year, sustainability remained a top business priority. For 45% of respondents, sustainability and climate change ranked among the top three challenge, along with technology adoption and AI. And 83% of respondents told Deloitte that their organizations increased sustainability investments in the last year.

Implementing new technology solutions to support sustainability goals was executives’ top priority. This focus on technology may reflect a dual strategy: Companies appear to be pursuing sustainability improvements while simultaneously integrating AI into their operations, according to Deloitte.

The convergence of these priorities is already widespread—using AI to tackle sustainability issues is “already ubiquitous.” Four out of five respondents indicated that they’ve deployed AI for sustainability efforts. The most common application is operational efficiency; two-thirds said they’re using AI to reduce operating emissions. The report found that revenue generation was the primary driver of sustainability initiatives, followed by compliance.

Business case. Companies are feeling the effects of climate change: A third reported that an extreme weather event has impacted their business.

“You get more enduring change. We’re not just doing it for sustainability’s sake, we’re doing it because it actually makes sense for the business, and that means it’s going to be stickier,” Amelia DeLuca, chief sustainability officer of Delta Air Lines, said in the report.

Pressure off. However, even if executives still think sustainability is important, there has been some decline in specific solutions. Compared to 2024, fewer respondents were tying senior leadership compensation to sustainability performance, requiring suppliers to follow sustainability criteria, purchasing renewable energy, developing new sustainable products, using more sustainable materials or energy efficient technologies, or implementing technology solutions for sustainability.

Pressure from shareholders, boards, governments, customers, and employees have all waned in the last three years. In 2022, 71% of respondents reported pressure from shareholders on sustainability issues, but that number dropped to 58% in 2025. Pressure from the other stakeholder groups declined similarly. And a minority have started to advocate for less action.