ESG And Sustainability Strategies Refresh: The Why And How Of It All!

ESG And Sustainability Strategies Refresh: The Why And How Of It All!

For several years in a row, Verdantix research has shown that sustainability strategies are not a one-time process: they must be iterative and dynamic, requiring regular updates. This is primarily because:

• The process of data management, reporting and disclosures often reveals significant gaps in current strategies. After making voluntary and/or regulatory disclosures, businesses may realize that their current strategies are insufficient to tackle the growing complexities of sustainability challenges, prompting a reassessment and shift towards more comprehensive approaches.
  
  

• As businesses improve their sustainability performance, this may highlight the need to update strategies to align more closely with operational realities. For example, operational transformation often reveals the delicate balance between ambitious strategy goals and the practicalities of implementation. A recent example is the recalibration of net zero targets, where overly ambitious goals are being adjusted to reflect more realistic, achievable objectives (see Verdantix Market Insight: What Actually Happens When Firms Miss Their Net Zero Targets).
  
  
• The evolving ESG and sustainability maturity of firms can require a shift in strategies from broad, high-level approaches to more action-oriented, granular networks of strategies focused on specificities such as product development and competitive advantage concerns.
  
  
• With an increasing number of internal and external stakeholders, each with distinct priorities, businesses may need to reevaluate their sustainability priorities and roadmaps. For example, the growing involvement of chief risk officers in sustainability discussions might necessitate updates to sustainability strategies, particularly in terms of incorporating stronger risk management frameworks (see Verdantix The More, The Merrier: Sustainability Is A Collective Endeavour!).
  
  
• The scope of sustainability concerns is rapidly expanding. Issues that were not key considerations five years ago – such as the responsible use of AI – are now integral to sustainability strategies. As new challenges emerge, strategies must evolve to keep pace.
  
  

Unsurprisingly, our global corporate survey of 400 sustainability executives consistently shows a strong corporate commitment to evolving sustainability strategies. In 2024, 63% of respondents ranked updating their strategy as either a top or a high priority over the next two years (see Verdantix Global Corporate Survey 2024: ESG & Sustainability Budgets, Priorities And Tech Preferences). This trend is set to continue as organizations respond to rapid regulatory changes, pursue new business opportunities and drive sustainability-led business transformation.

In this evolving landscape, businesses are increasingly turning to consulting firms for support in refreshing their sustainability strategies. As a result, the ESG and sustainability strategy services market remains highly competitive. Consulting firms within this market offer different competencies and areas of expertise, and it is important for buyers to match these to their specific needs. To aid in this decision-making process, our upcoming Verdantix Buyer’s Guide: ESG And Sustainability Strategy Services (2025) report will profile 23 top service providers, from a longlist of 69.

If you are interested in how service providers can assist in designing and developing dynamic sustainability strategies, and need guidance on selecting the most suitable provider, join us for our webinar on April 24, 2025: 4 Key Principles for Identifying the Best-Fit Sustainability Strategy Service Provider.