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Corporate ESG backlash has created three leadership camps: paralyzed, compliant, and those who see sustainability as a lens for business resilience; businesses need radical sustainability to move past incrementalism toward  impact-focused resilience and long-term adaptation

August 20, 2025 //  by Finnovate

A recent global survey Sustainability at a Crossroads by ERM, GlobeScan, and Volans reveals that  93% of sustainability experts say the current agenda is no longer fit for purpose, and more than half call for a radical overhaul. This is more than a policy or branding challenge. It’s a convergence of environmental breakdown, social regression, and governance backlash – an interlinked crisis with direct consequences for stability, markets, and public trust. According to Louise Kjellerup Roper, chief executive of Volans, the growing complexity of the sustainability agenda, and the backlash surrounding it, has led to fragmentation at the highest levels of leadership into three broad camps. Roughly a third appear paralyzed, unsure how to respond as ESG becomes a political flashpoint and global regulations tighten. Another third continues with a familiar playbook: annual reporting, compliance-focused governance, and reputational risk management. But the final third (perhaps the most interesting group) has accelerated their sustainability efforts, with one major shift: they’ve reframed sustainability not as a set of obligations, but as a lens on resilience and business continuity. This reframing is quietly transformative. It takes sustainability out of the realm of “nice-to-have” and into the core of business strategy. It positions climate risk, supply chain fragility, social license, and institutional trust as interdependent threats – and invites companies to build toward stability and adaptation rather than chasing perfection or PR wins. Crucially, it turns challenge into opportunity. “This might be the moment that takes us from threat to transformation,” says Roper. The future of sustainability may well be grounded in designing for resilience, long-term coherence and real-world impact, not just disclosures and defensive positioning. The survey’s framework points to four mindsets emerging among sustainability professionals: the traditionalists, who seek improvement within existing models; the institutionalists, who believe in coordinated reform; the pathfinders, who look for innovation within market systems; and the radicals, who advocate for transformational change across the board. Perhaps the most powerful insight is that the future won’t belong to any single mindset but instead to those willing and able to bridge them.

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