Purpose & Sustainability February 2025: Shifting attitudes toward corporate sustainability outlook

When you read the latest corporate sustainability headlines, admittedly the recent news can feel like a bit of a backslide. BP’s decision to scale back its sustainability initiatives and McDonald’s U.S. rolling back its (DEI) measures reflect a broader shift in corporate attitudes. Meanwhile, Donald Trump’s return to office and his administration’s aggressive stance against what he terms ‘woke companies’ has further created an environment where many corporations are reconsidering their commitments.

But I would argue that the momentum is far from lost. 

According to a recent report by the Confederation of British Industry (CBI), the UK’s net zero economy is actually – despite the shift in attitude – booming. The CBI reports that the nation’s net zero ecosystem is growing at three times the rate of the broader economy, creating high-wage jobs, and strengthening energy security. The report also highlights that the sector expanded by 10% in 2024, adding £83bn in gross value and nearly a million full-time jobs. This contrast underscores an important reality: while some companies stepping back are grabbing the headlines, others are capitalising on the immense economic opportunities sustainability offers.

The Trump Effect on corporate commitments

Trump’s presidency has certainly emboldened corporate leaders to rethink their sustainability and social responsibility strategies. His administration’s rhetoric and policy stance position ESG initiatives as a target, branding them as anti-business and unnecessary regulatory burdens. This has already led to a cascade of corporate rollbacks, including at Walmart, John Deere, and Meta, which have all scaled back their DEI commitments in response to political and legal pressure.

BP’s decision to reduce sustainability efforts - one of the most high-profile retreats -suggests that even energy giants are getting spooked. The oil major, which once positioned itself as a leader in the energy transition, is now slowing down its shift away from fossil fuels, responding to economic pressures and regulatory uncertainty. Similarly, Apple CEO Tim Cook’s recent comments on potentially modifying the company’s DEI policies underscore the growing tension between corporate values and political realities. The fact that Apple opposed a shareholder push to dismantle its DEI policies while simultaneously hinting at adjustments signals that businesses are trying to navigate an increasingly unfriendly landscape without making overt political statements.

The UK case study

While U.S. companies are retreating from DEI and ESG commitments, their global counterparts are doubling down. McDonald’s UK’s reaffirmation of its diversity commitments, for example, reflects a broader European corporate ethos that views sustainability and inclusivity as competitive advantages rather than liabilities. The UK’s net zero economy exemplifies this shift, with green sectors providing higher wages, increased productivity, and economic resilience. The CBI analysis found that net zero businesses contribute significantly to national economic growth, outperforming traditional industries like farming and advertising.

The difference between U.S. and UK businesses is emblematic that amidst setback, there is still steadfast progress. In regions where consumer expectations and regulatory frameworks still favour sustainability and social responsibility, companies are maintaining their commitments. This contrast will likely become a defining feature of the corporate sustainability landscape in the coming years, with multinational firms needing to balance different regulatory and consumer expectations across markets.

A test of corporate conviction

The coming years will be a critical test for companies that have built their brands around sustainability and inclusion. With mounting political and economic pressures, some will choose to retreat - citing ‘financial pragmatism’ - while others will hold firm, recognising that long-term corporate success is increasingly tied to environmental and social performance. The risk for companies rolling back their sustainability initiatives is not just reputational damage - it is the potential loss of consumer trust, investor confidence, and the ability to attract top talent.

Businesses must rethink their sustainability strategies not just as compliance obligations or public relations manoeuvres, but as core elements of their competitive advantage. Instead of reacting to short-term political shifts, corporate leaders should focus on making the business case for sustainability – realising how these initiatives drive innovation, employee engagement, and long-term profitability. The resilience of the UK’s net zero economy stands as proof that sustainability and economic success are not mutually exclusive, but deeply and irretrievably interconnected.

We have already achieved significant strides in clean energy and sustainability - strides that have laid a strong foundation for continued growth and innovation. Over the past decade, we have seen the cost of renewable energy sources, such as solar and wind, plummet, making them more accessible and scalable than ever before. This is a clear indication that the momentum behind sustainability is not only real but is rapidly accelerating. With continued technological advancements, innovation, and investment, we are poised to go even further, faster. A more favourable economic outlook will provide the stability and confidence needed for companies to fully embrace the opportunities in clean energy, driving us toward what is undoubtedly, a net-positive shift toward a more sustainable world.