Nearly nine in 10 U.S. companies have maintained or increased their sustainability investments in 2025 despite heightened political debate and uncertainty over ESG regulations, according to a new study from EcoVadis released on Tuesday.
The 2025 U.S. Business Sustainability Landscape Outlook, which surveyed 400 executives at U.S. firms with more than $1 billion in revenue, found that 87 percent of companies are continuing to funnel resources into sustainability, often behind the scenes.
The findings highlight a growing divergence between public messaging and internal strategy, with a rise in so-called “greenhushing” — a trend where firms downplay their ESG efforts in public while maintaining or increasing investment.
Sustainability Seen as Strategic Advantage
Executives view sustainability as a tool to strengthen supply chains and drive growth, with 65 percent of respondents calling supply chain sustainability a competitive advantage.
A similar share said ESG strategies help attract and retain customers, while 52 percent of finance leaders identified sustainability as a growth driver.
Pierre-François Thaler, co-founder and co-CEO of EcoVadis, said companies are “focused on the reality – sustainability is what keeps supply chains running and customers on board.”
Concerns Mount Over ESG Rollbacks
The study found 47 percent of C-suite respondents believe scaling back ESG regulations would lead to greater supply chain disruptions.
Additionally, 35 percent stated that regulatory rollbacks could harm ESG data quality and accountability, and 59 percent warned of an increased risk of labor abuses and worker mistreatment.
Despite strong investment intentions, many firms remain unprepared for emerging regulations. Just 13 percent reported being on track to meet upcoming deadlines under the EU’s Corporate Sustainability Reporting Directive and Carbon Border Adjustment Mechanism, California’s climate disclosure law SB-253, and Canada’s Modern Slavery Act.
Several companies have not begun collecting required ESG data for compliance, with as many as 19 percent behind on key regulations and up to 15 percent taking a wait-and-see approach.
Technology Investment on the Rise
To address ESG data gaps, firms are accelerating investment in technology. Some 57 percent are using ESG risk mapping tools, while others employ platforms for supplier engagement (49%), supply base mapping (34%), and on-site audits (32%).
However, data integrity remains a challenge, with 33 percent of executives admitting to knowingly reporting estimated or inaccurate ESG data to meet regulatory or investor expectations.
Still, 89 percent of companies surveyed said they plan to increase sustainability-related technology spending over the next 12 months.
EcoVadis, a provider of sustainability ratings and supply chain intelligence, said the report reflects a strategic shift in corporate America, where sustainability is increasingly viewed as a critical lever for long-term resilience rather than a compliance burden.
