2025 The State of Sustainable Business Compendium
This year’s compendium paints a clear picture of a world in transition. The momentum for sustainability is undeniable, yet the infrastructure, discipline, and coherence needed to sustain it at scale are still catching up. Corporate engagement is deepening: 93% of CFOs now see a business case for sustainability, and sustainably-related investments are rising steadily. However, much of this investment is still viewed through a narrow cost-saving lens. Only 1 in 5 companies are actively integrating sustainability into core business strategy, and too many efforts remain hampered by resource limitations and weak internal capabilities. Despite widespread recognition of ESG risks, many leaders still approach sustainability as a compliance exercise rather than a value driver. In capital markets, sustainable investing continues to expand—particularly in Europe and Asia—yet new fund inflows have stalled even as global ESG assets reach a record $3.3 trillion. Green economy stocks and sustainable funds have consistently outperformed traditional peers, but challenges in impact measurement and regulatory consistency persist. ESG now influences 42% of global assets consistently outperformed traditional peers, but challenges in methodology selection and resource limitation potentially increasingly a shift toward passive strategies. Consumers and technology are also reshaping the landscape. Demand for sustainable products is growing, and companies are responding with increased investments in ESG software and technology solutions. However, data gaps, lack of clear targets, and methodological inconsistencies remain significant barriers. While some regions are witnessing regulatory pushback, the global trend points to continued growth in sustainability-related policies and disclosure mandates. At Kanata Advisors, we remain committed to supporting the sustainable solutions ecosystem and are deeply grateful to our clients and partners for their unwavering trust and support.
2024 The State of Sustainable Business Compendium
The State of Sustainable Business Compendium includes a total of 126 charts (141 slides) capturing the state of sustainable business through 11 dimensions:
· Corporate Sustainability
· Corporate Executives & ESG
· Corporate Boards & ESG
· Corporate Sustainability Communication
· Sustainable Capital Markets
· ESG Data
· Climate VC
· Greenwashing, Regulations, & Disclosure
· Anti-ESG
· Carbon Markets
· Sustainable Jobs
The resulting picture from this exercise paints a rich mosaic of an evolving and maturing sustainability space. And despite the anti-ESG noise, and the pull back on ESG communication, the contours of a lasting sustainable business transformation are clearly visible. Nonetheless, there is still more work to be done.
Those working in the ESG and sustainability space will benefit a great deal by examining the totality of the information assembled in this compendium.
Asset managers, asset owners, corporate sustainability professionals, ESG consultants, ESG solutions providers, and regulators alike should find many of the carefully selected insights decision useful.