Private sector set to overtake government as main driver of corporate sustainability in 2026, report suggests

A new CSO Futures analysis predicts consumer pressure, supply-chain resilience and expanded use of data and AI will shape next year’s sustainability agenda as regulatory momentum weakens in the US and Europe

Consumer pressure and corporate resilience are set to overtake government regulation as the main forces shaping sustainability work next year, according to the CSO Futures community of senior sustainability leaders.

Members of the group say the U.S retreat from sustainability reporting rules, together with efforts in Europe to dilute forthcoming requirements, will push companies to rely more heavily on market expectations and operational necessity to drive environmental action. 

Some sustainability heads within the network also argue that global political tensions could speed up certain green measures, suggesting that heightened uncertainty is forcing firms to strengthen supply chains and reduce risk.

The growing use of data and technology features prominently in the outlook, with artificial intelligence expected to streamline reporting, highlight efficiency gains and improve the information available to customers. 

The CSO Futures 2026 Predictions Report, published today and based on contributions from Chief Sustainability Officers and the organisation’s Sustainability Leaders Community, points to several shifts likely to shape the coming year.

Among these is a move towards more focused disclosures, with reporting concentrated on material data rather than volume. Sustainability teams are also expected to place greater emphasis on financial returns by setting net-zero and resilience strategies in clearer commercial terms. 

The report anticipates wider use of AI and other analytical tools to generate insights that support both operational performance and environmental goals.

Rising customer demand for detailed supply-chain information is forecast to continue, prompting companies to gather more accurate data on how products are made. The report also highlights a shift towards more localised sustainability work, where the impact of initiatives is easier to measure, and notes the growing influence of regions such as Asia and the Middle East as investment and innovation in the sector expand.

CSO Futures CEO Daryl Willcox said: “While regulation remains important, many sustainability leaders in the CSO Futures community will not mourn the reduction in government tick-boxing as it allows them to focus on initiatives that make a real difference to their customers, business resilience and the future of our planet.”

Report author and CSO Futures Chief Reporter Melodie Michel added: “Regulatory news may have given the impression that sustainability was being put on the backburner this year, but those leading the corporate transformation are anything but disheartened. Extreme weather events and geopolitical uncertainty are forcing firms to face their vulnerabilities, and sustainability data and innovation have never been more advanced. Companies should leverage their Chief Sustainability Officers’ expertise, adaptability and influence in 2026: no one is better placed to help them stay relevant in an uncertain world.”

READ MORE: ‘Global development banks agree new priorities on finance, water security and private capital ahead of COP30‘. Banking chiefs have pledged to deepen cooperation on climate finance, infrastructure and private capital mobilisation, publishing a series of joint reports and new transparency measures as the UAE prepares for COP30 in Brazil.

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