· 5 min read
For years, we’ve been comforted by a narrative of climate progress. Corporations rolled out sustainability strategies. Governments announced ambitious climate targets. Investors poured billions into ESG (Environmental, Social, and Governance) initiatives. Yet despite all this activity, the climate crisis has only deepened.
In 2024 alone, climate-related disasters caused over $150 billion in global damages. Wildfires, floods, and extreme heatwaves have become a near-constant backdrop to daily life—not distant warnings, but lived reality. Meanwhile, global emissions remain stubbornly high, and many corporate commitments to “net zero” have quietly evaporated without consequence.
A telling example? A Nature study of 1,041 companies with emissions targets ending in 2020 found that 40% either failed or silently abandoned their goals. There was no media outcry. Investors didn’t blink. Regulators moved on. In contrast, those same firms had enjoyed glowing press and ESG score boosts when they initially announced their pledges. The message is clear: there’s a PR upside to promising sustainability—but little to no penalty for failure.
The myths that are holding us back
1. “Governments will lead the way”
Many businesses remain passive, waiting for governments to lead climate policy. But this reliance is proving misguided.
• Political instability and election cycles disrupt long-term climate planning. Even the EU delayed submitting updated climate targets, citing economic concerns and political tensions
• Fossil fuel lobbying continues to stall or dilute regulation. In the U.S., key energy and environmental appointments have had deep ties to fossil fuel industries, signaling possible policy backslides
• Regulatory fatigue is spreading. The EU's corporate sustainability rules are facing pushback, with countries like France seeking delays and changes to crucial environmental due diligence laws
Bottom line: If businesses wait for perfect policy before acting, they will always be too late.
2. “Incremental change is enough”
Tinkering around the edges—whether by boosting energy efficiency or purchasing carbon offsets—isn’t enough to meet today’s climate challenges.
• The State of Climate Action 2023 report warns that progress must be 4x faster to hit 2030 goals
• Industrial use of renewable electricity needs to reach 35–43% by 2030. We’re far behind
• Net-zero pledges often lack substance. Many firms have no credible plans or timelines—and face no accountability when they fall short
Takeaway: Companies that continue to play small will be overtaken by those willing to lead boldly in the green economy.
3. “Sustainability can be painless”
Many still believe in a cost-free transition to decarbonisation. That’s a dangerous illusion.
• Hard choices lie ahead—from retiring legacy assets to transforming entire supply chains
• Smaller, more expert-led sustainability teams are becoming the norm, with a focus on business outcomes over idealism
• ESG backlash has triggered “greenhushing”, where companies downplay or hide their climate efforts to avoid controversy
In today’s climate economy, staying quiet out of fear is more dangerous than taking bold action.
From complacency to execution: A 2025 business agenda
To thrive in a low-carbon future, companies must go beyond pledges. It’s time to embrace a mindset of resilience, speed, and accountability.
• Identify climate vulnerabilities: Use value-at-risk analysis to evaluate financial exposure to climate risks. Take adaptive steps before disruptions hit
• Advocate for smart policy: Lobby not just to protect short-term interests, but to shape a future-ready economy. Position climate policy as a path to energy security, food safety, and national competitiveness
• Collaborate for systemic impact: Isolated leadership isn’t enough. Industry associations must campaign for reforms with the same intensity as those resisting them
• Reframe the narrative: Sustainability isn’t just ethical—it’s existential. Link climate action to patriotism, economic strength, and everyday livelihoods
The new role of sustainability professionals
The profession itself is evolving. Companies now demand more than good intentions—they want ROI, risk mitigation, and strategy.
• Fewer junior roles, more senior expertise
• ESG budgets under pressure—proof of impact is critical
• Shift from noise to results—less show, more substance
The era of climate storytelling is giving way to an era of climate performance.
Signs of progress: Global case studies
Amid the challenges, there are emerging bright spots:
• EU’s competitiveness compass: This new initiative supports decarbonisation, innovation, and regulatory simplification. Investments in AI, biotech, and quantum technology aim to future-proof Europe’s economy.
• China’s green momentum: With substantial investments in renewables and emissions policies, China is positioning itself as a global leader in sustainability, according to the World Bank.
• Canada’s supply chain reform: Canada’s new due diligence laws target environmental and social risks in global supply chains—raising the bar for corporate responsibility.
Beyond ESG: Reframing the language
As ESG becomes a political target in some regions, organisations are adapting their language while staying true to the mission:
• Sustainable investing: Used by asset managers to signal clarity and focus
• Responsible business: Highlighting ethical operations and long-term value
• Rational sustainability: A scholarly approach emphasising balanced, data-driven strategies
Final thoughts: The time for quiet complacency is over
The climate crisis demands more than press releases and carbon offsets. It demands bold moves, cross-sector collaboration, and a willingness to be held accountable. Companies that adapt will lead. Those that delay will face growing risks—economic, reputational, and existential.
The question isn’t whether we act. It’s whether we’ll act fast enough.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
