The ESG landscape is shifting fast. Politics are polarised, regulations in flux, and many leaders are left unsure of where to focus. What is clear is that ESG is not going away; it is evolving – rapidly. What leaders need now is clarity on what truly matters: building sustainable, resilient organisations that stand the test of scrutiny, market shifts, and stakeholder expectations (Dydon.AI, 2025).
Managing Uncertainty in a Shifting ESG Landscape
The EU’s regulatory pause, reflected in proposed Omnibus amendments to CSRD, CSDDD, the EU Taxonomy, and CBAM, has only added complexity (Latham & Watkins, 2025b). While the stated aim is to reduce burden and recalibrate scope, for many companies it has produced uncertainty:
- What still applies?
- What is delayed?
- What will change?
- What should we monitor in our supply chains or workplace culture that will still matter in a year?
Even without regulation breathing down their necks, companies still need to:
- Identify ESG data that reflects real risk and opportunity.
- Communicate with credibility to investors, employees, and partners.
- Stay competitive as investor, talent, and consumer expectations evolve.
Why Regulation Still Matters
Even with simplifications, CSRD remains a foundational and globally influential framework. Its focus on double materiality, assurance, and value chain transparency is setting a benchmark for ESG disclosures (Latham & Watkins, 2025a).
Some argue that ESG rules are burdensome or anti-business. But directives like CSRD and CSDDD are shaping corporate behaviour and long-term value creation. As Andreas Rasche of Copenhagen Business School notes, the idea that ESG undermines European competitiveness is “misguided”. There is real opportunity for long-term resilience, stakeholder trust, and innovation (Runyon, 2025). Regulation:
- Creates standards that allow comparison across companies.
- Reduces greenwashing by raising the bar for claims.
- Levels the playing field so companies compete on substance.
- Builds trust through structured, assured, and transparent reporting.
ESG Beyond Compliance
Even without directives, the business case for ESG remains strong.
Investor and Corporate Sentiment
Despite headlines about ESG fund outflows, investor interest is resilient. Morgan Stanley’s Sustainable Signals report shows nearly 90% of global investors want sustainability in their portfolios, with Gen Z and millennials almost unanimous. Over 70% believe strong ESG practices drive higher returns, while 80% of executives report they can quantify ROI on sustainability initiatives (Morgan Stanley, 2025).
Consumer Expectations
Especially in Europe, consumers reward companies that act sustainably and transparently. According to Sustainable Brands (2025), ESG-led companies are increasingly recognised for both financial performance and societal impact.
Employee Demands
Younger talent prioritises purpose. Values-driven workplaces attract and retain the best people, and sustainability is becoming the baseline (Morgan Stanley, 2025).
Competitive Advantage
Done well, ESG is a business strategy. 88% of companies say sustainability drives long-term value, while 83% report measurable returns, enabling better comparison of investments and capital allocation. Energy efficiency, cost reductions, and supply-chain innovation are all top outcomes.
But ESG Isn’t Easy
Even when companies want to act, barriers remain:
- Political volatility and media pushback (especially in North America).
- High upfront costs.
- Confusion around metrics and benchmarks.
- Lack of internal alignment.
- Limited transparency across value chains.
The impact is real, and keeping investors engaged. But without a consistent framework or shared dialogue, many companies still struggle to move confidently.
The Role of Peer Dialogue
This is where structured, peer-based exchange makes a difference. No single consultant, article, or framework has the full answer. But by bringing leaders together across industries, peer dialogue creates clarity, accelerates decisions, and helps avoid blind spots.
Given how quickly ESG expectations, regulation, and stakeholder demands are shifting, now is the right time to connect with peers and gain clarity.
At Arvoki, we’re launching a new peer-group series for sustainability, compliance, operations, strategy, and other senior leaders across sectors.
The first session — “Reframing ESG: Beyond Compliance, Towards Resilience” — is an opening dialogue where participants will:
- Hear what others are doing and identify the priorities most relevant to their business.
- Share how they’re preparing and building momentum inside their organisations.
- Help shape the focus of upcoming Arvoki cohorts.
As the series continues, future sessions will dive into themes such as metrics and data strategies, internal alignment, supply chain management, energy, culture, and other critical ESG levers.
This is a chance to compare perspectives, clarify your next steps, and connect with the right peers to continue the conversation.
Apply for your invitation to join the first session.
Places are limited.
References and further reading
- Dydon.AI (2025). Is ESG Dead or Evolving? dydon.ai
- ESG Today (2025). 88% of Companies See Sustainability as a Value Creation Opportunity. www.esgtoday.com
- Forbes Technology Council (2024). The Rising Power Of ESG: It’s Not Just Better — It’s Better Business. www.forbes.com
- Latham & Watkins (2025a). EU Sustainability State of Play: European Green Deal, Omnibus, and Corporate Sustainability Regulation. www.lw.com
- Latham & Watkins. (2025b). Omnibus package released: EU Commission proposes amendments to sustainability obligations. www.globalelr.com
- Morgan Stanley (2025). Corporate Sustainability Signals Report 2025. www.morganstanley.com
- Morningstar (2025). Global Appetite for Sustainable Investing Persists Through Q1. www.morningstar.com
- Nixon, S. (2025, August 7). Rowback on EU green rules will harm companies and investors. Financial Times. www.ft.com
- Runyon, N. (2025). EU’s omnibus proposal: Debunking the myth that sustainability compliance hinders competitiveness. Thomson Reuters Institute. www.thomsonreuters.com
- Sustainable Brands (2025). Sustainable Investments: Positive Change and Competitive Returns. sustainablebrands.com
