A charged political environment is impacting the global regulatory landscape making it difficult for business leaders to keep up with the dizzying pace of change.

In the US, President Donald Trump’s mantra ‘drill-baby-drill’ catchphrase accompanies his push back on all-things climate and, more broadly, sustainability. The US Securities and Exchange (SEC) climate disclosure rule, which was warmly welcomed by investors needing a better understanding of the potential climate-related risks affecting bottom lines, has now been froze plunging investors back in the dark.

The drive towards easing sustainability reporting rules is not confined to the US. Last week, the EU Commission agreed proposals to simplify sustainability regulations, announcing an Omnibus package ostensibly purposed to create a favourable business environment where companies can thrive.  Proposals include amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Taxonomy and the Carbon Adjustment Mechanism (CBAM).

While the motion to modify several sustainability and corporate reporting requirements is yet to reach the EU Parliament and EU Council for debate and details, where there is the prospect of further change, it indicates a narrative, echoed in the US, that pitches sustainability as a hurdle to business success.

I’m not convinced this is the case, far from it. Working with a range of global corporate companies to support their decarbonisation journey, I am seeing wider recognition from the C-Suite that investing in and unifying sustainability with an organisation’s business strategy actually pays off.

A new survey by management consultancy Kearney makes the case. Despite concerns of reported slowdowns in addressing sustainability-related challenges within organisations, CFOs see the business value up for grabs. The survey questioned 500 CFOs, sampled from large, global corporations, on their decarbonisation expenditures and reported that 92 per cent of respondents expect to increase their budgets, while 93 per cent of CFOs acknowledged a clear business case for investing in sustainability. Nearly two-thirds of those surveyed already measure the cost of inaction and 94 per cent incorporate sustainability considerations into their overall investment decisions, demonstrating that sustainability is embedded into their financial strategies.

It’s not only CFOs who are aligning business strategy with sustainability. According to the UN Global Compact-Accenture’s largest CEO study on sustainability, 98 per cent of CEOs believe that sustainability is core to their role. The study further found that 66 per cent of these CEOs are also taking action, engaging in long-term strategic partnerships to build resilience into their business.

There is good reason for the C-Suite shift towards capturing business value from sustainability. Upsides will come to organisations ready to operate in a net-positive economy, including better allocation of capital, improved employee retention and incentivisation, and new and growing green markets supported by increasing numbers of consumers using their purchasing power to reward sustainable products and services.

As well as driving new opportunities, increasing focus on sustainability can support organisations to mitigate climate-and-nature-related risks. Companies taking the lead understand the economic risks posed by their dependencies on natural resources that can cause disruption to supply chains and bring additional cost. Increasingly there is expectation for large business organisations to demonstrate environmental stewardship; even if regulation requires less in the way of evidencing climate commitments, consumers and investors will hold corporates to account. In fact, climate litigation against companies continues to rise.

Dialling down political noise can be a challenge but it is prudent. There is a well-known phrase: ‘a week is a long time in politics’. While a four-year election cycle might seem like a very long time, we have to remind ourselves of the medium- and long-term realities of a failure to stay the course. Consensus in the global science community suggests, left unabated, climate-and-nature-related risks will increase over time. The financial impact of climate change is increasingly visible and many global organisations are already experiencing climate-related disruption to supply chains. In fiscal terms, the World Economic Forum warns that global GDP could drop by up to 22 per cent, cumulatively, by 2100.

Organisations taking the lead on sustainability will reap rewards, remaining resilient against challenging headwinds and achieving profitable sustainability. It’s not activist for businesses to take action on climate change, it is respondent and financially responsible.