Private Sector Poised to Lead Sustainability Drive in 2026

A new forecast report predicts that 2026 will see a significant shift in the driving force behind global sustainability efforts, with the private sector overtaking government regulation as the primary catalyst for change. The report, based on insights from senior sustainability leaders, suggests that consumer demand and corporate resilience will become the main motivators for businesses, even as regulatory momentum slows in key regions such as the United States and Europe. This marks a potential turning point in which corporate strategy, rather than compliance, becomes the central engine of environmental and social progress.

The analysis, detailed in the CSO Futures 2026 Predictions Report, challenges the notion that sustainability is being deprioritised. Instead, it argues that extreme weather events and ongoing geopolitical uncertainty are forcing companies to confront their operational vulnerabilities. In this context, sustainability is increasingly viewed not as a regulatory burden, but as a critical component of long-term business resilience and risk management. Melodie Michel, CSO Futures’ lead journalist and author of the report, noted that sustainability leaders are leveraging advanced data and innovation to guide their organisations through an increasingly uncertain global landscape.

From Compliance to Commercial Value

A central theme of the report is the expected evolution in how businesses approach sustainability, with a sharpened focus on return on investment (ROI). The coming year is likely to see business leaders working to translate broad concepts such as net zero and climate resilience into tangible commercial benefits and measurable financial returns. This shift positions sustainability not as a cost centre or public relations exercise, but as an integrated business strategy that actively creates value.

At the same time, the report anticipates a rationalisation of sustainability reporting. Companies are expected to move away from broad “tick-box” exercises driven by regulation and towards more focused reporting that highlights the most material data for their operations and key stakeholders. This streamlined approach is likely to be supported by the increasing use of data analytics and artificial intelligence (AI), helping to reduce administrative workloads while identifying concrete opportunities for improvement and transparency.

The Evolving Role of the Chief Sustainability Officer

Within this changing environment, the role of the Chief Sustainability Officer (CSO) is set to become more influential and strategic. As government-led regulatory pressure potentially eases, CSOs are seen as uniquely positioned to steer their organisations by directly linking sustainability initiatives to customer expectations, supply chain resilience, and commercial opportunity. Their expertise is increasingly viewed as essential for ensuring companies remain relevant and competitive.

The report concludes that while government regulation will continue to play an important role, a reduction in what some perceive as regulatory “box-ticking” could allow corporate sustainability efforts to become more dynamic, innovative, and impactful. Driven by market forces and the need for resilience, the private sector is positioned to become the dominant force advancing sustainability in 2026.