The Sustainability Recession Is Ending — Smart CSR Leaders Are Already Building What Comes Next

Over the past year, corporate social responsibility and sustainability leaders have been under siege. Programs paused. Budgets frozen. Public sentiment whiplashing between ESG backlash and climate urgency. Internally, many CSR leaders found themselves stuck in the “wait-and-see zone”—reluctant to push forward without clear direction from the C-suite. Others paralyzed by fear.

But if you’re still waiting for a sign, here’s your green light:

Sustainability is not dying. It’s scaling (quietly)

Despite the noise and politicians claiming ESG is daead, the latest data tells a very different story: companies are increasing investments in sustainability and social impact—because it’s good for business.

Let’s look at the numbers:

• 87% of U.S. companies are maintaining or increasing sustainability budgets in 2025. (EcoVadis – July 2025)
• 88% of companies see sustainability as a long-term value driver, with over 80% actively tracking ROI. (Morgan Stanley – June 2025)
• Only 2% of organizations cut sustainability budgets—while over 40% increased them. (ISEP – July 2025)
• 89% of executives plan to grow their sustainability budgets, and nearly a third say it’s their #1 priority. (Forbes – April 2025)
• 85% of companies increased sustainability investments, up from 75% the previous year. (Deloitte – September 2024)
• Products with sustainability attributes drive 6–25% more revenue and 37% of companies are ramping up climate ambition. (PwC – March 2025)

Even JP Morgan is weighing in: 88% of executives say sustainability directly supports their long-term strategy. (JP Morgan)

What’s more? Companies aren’t just spending—they’re seeing returns:

• In EcoVadis’ July 2025 report, 65% of executives say supply chain sustainability provides a competitive advantage.
• 52% of finance leaders agree sustainability directly supports growth.
• And 96% of investors say sustainability reporting strengthens financial performance.

Social impact spending is growing too—and it’s creating business value

It’s not just environmental sustainability getting the green light. Corporate investment in social impact programs—especially those centered around purpose, equity, and employee engagement—is also rising. And the business case has never been stronger.

• Companies with the highest participation in employee volunteering and giving programs had 57% lower turnover, according to Benevity’s State of Corporate Purpose.
• Gallup’s 2024 Workplace Report found that employees who believe their company’s purpose resonates with their own are 4.5x more likely to be engaged, and highly engaged employees correlate with 21% higher profitability.
• In LinkedIn’s 2025 Purposeful Workforce Study, 68% of employees said they would leave a company that doesn’t prioritize purpose, and 76% of Gen Z candidates consider a company’s social impact commitment a deciding factor in job offers.
• According to CECP’s Giving in Numbers, median total giving by companies increased 14% year-over-year, and median non-cash giving (like skills-based volunteering) rose by 18%. More importantly, these aren’t just budget line items—they’re performance drivers:

And it’s not just employees paying attention.

A 2025 NielsenIQ global survey revealed that:

• 73% of consumers prefer to buy from companies that support social justice and equity
• 64% say they’ve boycotted a brand over misaligned values
• And among B2B buyers, 83% said supplier diversity and ethical sourcing are factors in their procurement decisions

This isn’t “woke capitalism”—it’s smart business strategy.

Whether you’re building an employee development initiative through skills-based volunteering or engaging underrepresented suppliers to drive equitable growth, these programs are contributing to brand strength, talent retention, and market differentiation.

If you’re trying to get executive buy-in, start with this bottom line: social impact isn’t a cost center—it’s a competitive advantage.

(And, as we showed in an earlier post, it has a positive ROI)

So why does it feel like the world’s gone quiet (at least on ESG)?

Welcome to the era of greenhushing. Over 30% of companies are pulling back on promoting their sustainability work—not because they’ve lost interest, but because of growing scrutiny and political fear mongering. Say the wrong thing, and you can get ESG-cancelled.

This isn’t a retreat. It’s a recalibration.

As Tim Mohin wrote recently, we’re nearing the end of the “sustainability recession.” The best leaders are emerging from this with sharper focus, clearer metrics, and stronger alignment with business goals. They are also using more precise language, like climate adaption, risk mitigation, resiliency, and more. But call it what you want, it is the recognition that investing in people and planet is good for profits in the long run.

“Even as the debate over business sustainability heats up, executives are focused on the reality—sustainability is what keeps supply chains running and customers on board.” – Pierre-François Thaler, Co-CEO, EcoVadis

What does this mean for CSR and Corporate Social Impact leaders?

It means your moment is now.

CEOs and CFOs are actively looking for sustainability and equity initiatives that drive real results. They’re asking: Where do we see risk? Where can we save money? Where can we grow differently? Where can we build inclusive and sustainable business models of the future?

The leaders who win in this moment won’t be the ones who waited. They’ll be the ones who:

• Built programs that integrate social impact into business operations
• Showed ROI by aligning volunteering and skills-based initiatives with learning, retention, and innovation
• Linked sustainability and procurement with inclusive business models
• Designed for resilience, not just compliance

If you’re tired of waiting for permission to lead, here’s your cue: show the business case, and the business will follow.

And if you need a partner to help you build for long-term, scalable impact—MovingWorlds is here to help.

Let’s build what comes next. Let’s build better.