Constantly evolving regulatory updates, deepening political divides, and increased expectations for transparency dramatically shifted the corporate sustainability landscape in 2025.
The EU’s Corporate Sustainability Reporting Directive (CSRD) is approaching its first formal reporting year in 2026, and California’s SB 253 and SB 261 will both require disclosures starting next year. Together, these laws are setting new global expectations for emissions reporting, assurance standards, and climate-related financial risk transparency.
At the same time, the sentiment around “ESG” became politically charged, especially in the U.S., leading some companies to pull back from voluntary initiatives and/or soften their public commitments. But the trailblazers took a different approach. Rather than retreat, they used this moment to think longer-term and strengthen their programs — aligning climate strategy with business performance, embedding sustainability into company-wide decision-making, and building systems that can stand up to audit, regulation, and executive review.
So, what will a trailblazing climate program look like in 2026? We believe there will be four defining traits.
1. ROI as the cornerstone of sustainability strategy
Heading into 2026, the most advanced sustainability programs will be able to clearly demonstrate the business value of sustainability work.
With budgets tightening and executive scrutiny on the rise, trailblazing teams will highlight sustainability as a core driver of business performance. From cost reduction and risk mitigation to regulatory readiness and market growth, these programs will be tied directly to outcomes that matter to the business.
Sustainability leaders will work closely with Finance to forecast the return on climate investments, embed emissions data into business planning, and build cases that connect decarbonization to competitive advantage. The result will be a new level of strategic alignment, where climate action supports both environmental goals and bottom-line performance.
In trailblazing corporate climate programs, you will find:
➜ Climate initiatives supported by clear financial rationale
➜ Sustainability metrics included in business cases and forecasts
➜ Measurable links between emissions reduction, risk management, and business value
2. Cross-functional ownership of climate data and outcomes
Trailblazing sustainability programs will no longer be confined to a single team. Leading companies will shift from siloed efforts to a shared, enterprise-wide approach. Procurement, Finance, Operations, and specific business units will each take ownership of their portion of climate and environmental performance data and use it to inform everyday decisions.
At the center, the sustainability team will evolve into a central intelligence hub. Instead of owning every action, they will aggregate and validate data from across the organization, using it to steer decarbonization strategy and shape sustainability investments.
In trailblazing corporate climate programs, you will find:
➜ Climate and ESG performance owned across business functions
➜ Data integrated into procurement, financial, and operational decisions
➜ A central team guiding strategy, insight, and reporting
➜ A shift from centralized ownership to coordinated, cross-functional execution
3. Audit-ready climate data that mirrors financial reporting
With climate disclosure requirements like the CSRD and California’s SB 253 moving toward enforcement, assurance is quickly becoming a default expectation. Leading companies will respond by treating climate data with the same rigor and reliability as financial data.
The most advanced programs will build end-to-end, assurance-ready data systems with full traceability from source to disclosure. These systems will support version control, audit trails, and alignment with international assurance standards such as ISAE 3000, ISAE 3410, and ISO 14064-3.
To get there, climate teams will work closely with Finance, Legal, and data owners to ensure emissions reporting can stand up to third-party review. Companies that make these investments now will be far better positioned to meet growing regulatory demands with speed, accuracy, and confidence.
In trailblazing corporate climate programs, you will find:
➜ End-to-end assurance-ready data flows
➜ Climate data systems designed to meet audit and regulatory standards
➜ Documentation aligned with financial-grade reporting
➜ Cross-functional collaboration to maintain data accuracy and readiness
4. Verified emissions reductions across the value chain
All companies will need to estimate and report emissions, but trailblazers will take it further by delivering verified reductions across their value chains. The most advanced programs will demonstrate year-over-year progress in scope 3 emissions intensity, achieved through supplier engagement and decarbonized procurement.
To get there, companies will embed low-carbon requirements into contracts, offer green premiums to incentivize cleaner materials or processes, and work closely with suppliers to track and improve performance. These reductions will be backed by data that is specific, actionable, and independently verified.
What will set these programs apart is their ability to tie emissions outcomes directly to sourcing decisions, contract terms, and supplier actions.
In trailblazing corporate climate programs, you will find:
➜ Year-over-year reductions in scope 3 emissions intensity
➜ Supplier engagement focused on specific emissions outcomes
➜ Procurement strategies that incentivize low-carbon performance
➜ Defining climate leadership in 2026
Trailblazing programs will turn sustainability into a core business strategy, backed by data, managed across the enterprise, and tied to real financial outcomes. They will build systems that support both compliance and action, and they will deliver measurable reductions across their operations and value chain.
