The Future of Sustainability in Business: Why Success Depends on Integration (EY)

Summary

• Companies that embed sustainability into business strategy are 40% more confident in their business outlook for the next 12 months.p.3
• 39% of companies suffered a reputation-damaging backlash for not doing enough on sustainability, against only 6% of those integrating it.p.4
• The majority of companies (55%) keep their sustainability strategy completely separate from their business, or have no strategy.p.5
• Only 5% say their sustainability strategies are fully integrated into their wider business.p.5
• 82% of board members say their sustainability strategies are completely standalone.p.7
• 81% of boards say sustainability initiatives are the first to be cut when times are hard, against a third (33%) of senior leaders.p.7

Key insights

1. Boards of companies that integrate sustainability are 1.5 times more effective in achieving sustainability objectives.p.3
2. 29% of companies have suffered a backlash from activists over perceived shortcomings on sustainability.p.4
3. 65% of businesses believe they have an advanced understanding of sustainability regulations.p.5
4. 57% of companies say sustainability initiatives are more likely to be wound up than business initiatives if cuts are needed.p.6
5. Fewer than one in five companies (18%) say their sustainability strategy focuses on long-term issues.p.6
6. 80% of investors say companies are failing to articulate the rationale for long-term sustainability investments.p.8
7. The survey covered 200 respondents in February 2025.p.6