DoubleMateriality.org’s Post

This latest report on the state of business sustainability in the United States by Reuters offers some fascinating insights (https://lnkd.in/e8PPKnQf). Here is a summary of the key points: 1️⃣     Sustainability Reporting is Mainstream (pp. 5–6) Sustainability reporting is now standard practice among major U.S. businesses, with 99% of the top 100 companies publishing reports and 88% securing third-party assurance. Nearly half of reporting companies conduct materiality assessments, and 11% have embraced double materiality approaches. Additionally, 80% request Scope 3 data from suppliers. These efforts are recognized internally as value-generating with 95% of companies reporting reputational benefits, and 74% linking reporting to revenue growth.   2️⃣      Small and Mid-Sized Companies Are Engaged (pp. 6–7) Mid-market and small businesses are actively participating in the sustainability transition. About 75% of mid-sized firms are preparing for disclosure obligations, and 53% of small businesses recognize the reputational upside of reporting, 27% already report on sustainability issues. Moreover, 68% of small firms report a positive return on sustainability-related investments, whilst 41% said that sustainability gives them competitive advantage   3️⃣      ESG Investment Remains Resilient (p. 7; pp. 25–26) Despite political and cultural pushback, ESG investment remains robust. In 2024, ESG-labeled assets in the U.S. totaled $6.5 trillion. A significant majority (77%) of institutional investors are allocating capital to the energy transition, and 66% now have dedicated ESG portfolios.   4️⃣     ESG Backlash is Real but Complex (pp. 23–25) While ESG backlash is intensifying (61% of large companies expect it to worsen) most companies are holding their course. Greenhushing is becoming more common, with a 26% drop in ESG-related press releases since 2022. To navigate the politicized landscape, companies are rebranding their work under terms like “responsible growth” or “sustainability.” Despite the rhetoric, 96% of surveyed companies have kept their targets intact, and 44% of CFOs plan to increase their sustainability investments.   5️⃣      Future Trajectory (pp. 8–10; 13; 25) U.S. companies are moving beyond compliance to view sustainability as a strategic imperative. The emphasis is shifting toward forward-looking metrics, Scope 3 innovation, and product-level impacts or “handprints” rather than just footprints. Sustainability is being embedded across departments, supported by internal champions and technology. According to the report, 80% of CFOs expect the focus on sustainability to remain steady or grow, even in the face of political headwinds. Headlines are all about sensationalism , but the truth is always hidden in the details. The report is text heavy, but very much worth a read if you want to get up to speed on what's really going on the US, sustainability wise.