Should We Really Be Pulling Back on Sustainability Now?

While headlines often signal a corporate retreat from sustainability, especially amid political or economic uncertainties, a more detailed look exposes a reluctance rooted in risk aversion. 

According to a study by Harvard Business Review, although only 13% of firms have actually pulled back on ESG efforts, many are quietly “greenhushing” to avoid scrutiny and public backlash. Internal resistance also persists: leaders fear investment missteps, while employees worry about workload and unclear ROI. 

This pervasive culture of caution not only stifles bold sustainability innovation but sustains traditional operating models, leaving companies vulnerable in an era where decarbonization and resource efficiency are becoming business-critical and imperative in fighting science-proof human-made climate change. 

Why Is China Investing So Much in Renewable Energy?

While Western companies hesitate, China is executing an aggressive, state-led green transformation. By the end of September 2025, its installed renewable energy capacity exceeded 1.73 billion kW, comprising 54.7% of its total power generation, propelling 20–26% year-over-year growth in clean electricity output. 

Across broader efforts, China has invested $818 billion in its green transition in 2024 alone: double the investment of any other country. Beyond capacity expansion, it’s building battery storage systems (rising 86% YoY by end 2024), grid innovation, electric vehicles, and green hydrogen, transitioning toward what analysts term a “growing by greening” economy. 

This cross-sectoral commitment positions China not just as the world’s green manufacturer, but as a formidable leader in cleantech innovation and deployment. 

Is Sustainability Still Worth It for Businesses?

Sustainability has moved beyond compliance to become a source of competitive advantage. Leading consultancies have outlined the business rationale: 

• Cost Reduction 
  BCG finds that sustainable operations, via energy efficiency, waste minimization, and stable material sourcing, reduce costs while enhancing resilience. These investments tend to pay back quickly and stabilize cash flow. 
• Risk Mitigation and Value Protection 
  Deloitte warns that inaction risks regulatory penalties, supply chain disruption, brand damage, and difficulty recruiting top talent: risks that can outweigh short-term investment costs. 
• New Revenue Streams and Growth 
  Diversifying into circular business models, such as reuse, repairable design, and resource sharing, can yield new revenue streams and profit opportunities. Bain reports that over 70% of manufacturers expect circular models to boost revenue by 2027, while reducing cost and improving resilience. BCG also highlights price premium potential from sustainable products, with consumers increasingly willing to pay for eco-friendly offerings. 

Where Should Companies Focus Their Sustainability Efforts?

To move past caution and capture the benefits of sustainability, companies should focus on: 
 

1. Renewable Energy: Expanding solar, wind, and green hydrogen to decarbonize operations and reduce energy spend. 

2. Energy Storage and Batteries: Investing in advanced storage to stabilize renewable integration, mirroring China’s superpower bank model. 

3. Repair-Focused Design: Embracing ‘design to repair’ and modular products to reduce resource use, increase product lifespan, and enhance circularity. 

4. Circular Business Models: Transitioning to reuse, resale, and shared economy models, capturing new markets while cutting resource costs. 

5. Resource Efficiency: Optimizing material usage and industrial processes to save cost and reduce emissions 

How Do You Implement Sustainability Initiatives?

Organizations looking to implement these priorities successfully can adopt proven practices: 

• Pilot and Scale: Test new models in controlled settings to build evidence and manage risk. 
• Link Sustainability to Core Value: Embedding ESG into strategy ensures alignment with financial goals and attracts investor confidence. 
• Incentivize and Celebrate: Reward innovation leaders, share success stories, and integrate sustainability KPIs into performance metrics. 
• Collaborate Beyond Boundaries: Engage with startups, ecosystems, and innovation intermediaries to supplement internal capacity. 

What Happens If We Wait on Sustainability?

The cost of doing nothing keeps rising. While many companies retreat into silence on sustainability, China is racing ahead, building its position through massive green investment. 

This isn’t the time to lose courage. The business benefits are proven, and the earth we leave behind matters. Companies that embrace sustainability through renewables, circularity, resource efficiency, and practical innovation can cut costs, shield themselves from disruption, and open up new revenue streams.  

Act now to secure future growth, or risk falling behind in a world that’s already moved on. 

Experience the Full Podcast

Christian Ehl, Global Functional Leader for Sustainability and ESG, hosts “Sustainability Leadership Talks” in his personal capacity. This article was inspired by his conversation with Tina Mavraki, a FTSE 100 Board Director and strategic adviser with C-level expertise in capital markets, energy transition, and risk management across natural resources sectors on five continents. 

Listen to the full episode: https://open.spotify.com/episode/5FnfqnECaqrV6RN5tiQ0GY?si=bWxBSNW1SnydXWnJvlEmBw 

The podcast features senior executives and board members discussing practical ESG implementation, organizational resilience, and sustainability strategy. Recent guests include Evan Wiener (former H&M/Nike/Adidas), Thomas Schmidt (former Haniel Group CEO and CEO of GREENZERO), and other C-suite sustainability leaders. 

Subscribe: 

• YouTube: https://www.youtube.com/channel/UCpmqavJ5RsAaO7_qPkJIxqg 
• Spotify: https://open.spotify.com/show/7JKh03bAA1rewQWmuql0Hw?si=r6AW3nV0SqawyQ7azdOqMQ 

About the Author

Christian Ehl is a Partner at Stanton Chase Düsseldorf and the Global Functional Leader of Stanton Chase’s Sustainability and ESG Specialization.  He has more than 20 years of experience in executive search, leadership advisory, sustainability, and ESG. He is the author of several sustainability related whitepapers and articles and supports his clients in transitioning to more sustainable business models with the right people in place.