The era of lengthy, glossy sustainability reports is coming to an end. In boardrooms across the globe, the conversation is shifting from how to engage with policy to enhancing performance: from explaining our intentions to delivering outcomes that cut emissions, grow margins, and build trust.
The question is not whether ESG survives the backlash; it is about how fast organisations can make the transition that delivers sustainable value every quarter.
According to the Business Research Insights the global sustainability consulting market is currently USD 10.4bn, and will grow by CAGR of 5.2% to USD 15.45 bn by 2034. The market continues to grow, but it is less exuberant following the ESG backlash.
Key Market segments consist of strategy and planning dominating with 38%, technical support 22%, auditing and verification 20%, sustainability marketing 12%, and others 8% globally. In terms of sector applications, the chemical segment is forecast to lead market share.
With EU corporate sustainability regulations becoming mandatory in today’s politically charged environment, the FT reports that ESG risk and reporting are in high demand. Two major EU directives are:
→EU Corporate Sustainability Reporting Directive (CSRD): expands the Non-Financial Reporting Directive (NFRD) and is being implemented in phases over FY2024–26, with reports beginning this year and continuing to 2028. Disclosures are in accordance with European Sustainability Reporting Standards (ESRS). This raises the bar for governance, data quality and audit readiness.
→EU Corporate Sustainability Due Diligence Directive (CSDDD): calls for companies to incorporate processes that tackle human rights and environmental due diligence. Firms must identify, prevent, mitigate and account for adverse impacts on all members of their operations and value chains. This transforms supply chain governance processes from being voluntary to becoming a compliance and fiduciary issue.
The consulting market’s deceleration tells a hidden story: it is not decay but maturity. The days of easy wins in policy and reporting are over. The next wave of growth will come from integration, as ESG is embedded into the value engine itself.
As expenditure shifts from disclosure to performance, organisations face a design challenge. Switching from unity to uncertainty poses a dilemma for firms.
After decades of unity and hope, the world today is fragmented and operating with a heightened level of scepticism about sustainability and ESG. Sustainability has shifted from merely implementing an ESG policy to prioritising outcomes that significantly impact organisations.
The former has evolved beyond a single organisational initiative that involves making corporate and lifestyle choices. The latter has assumed the mantle of connecting sustainability aspirations into a system that leads to decision-making that translates value across the firm.
To address this delicate balancing act and reduce stakeholder pressure, CEOs/CFOs need transition plans to secure their organisation’s growth strategies and futures within a regenerative society.
Several forces are driving this uncertainty:
• The perils of nature
• Global geopolitical disorder
• AI disruption
• Societal unrest
• Sovereign debt levels
Keeping track of these forces has led to the use of countless indicators. The financial origins of the ESG phenomenon have made the financial dimension a core tenet of performance appraisal.
In 2025, the market is now shifting away from viewing ESG as solely a compliance and static reporting requirement and is instead seeking integration and outcomes. The future is driving sustainable value. ESG can operate as a backbone, where P&L, tCO₂e, capex, opex, and policy risk are integrated within a sustainable strategy envelope.
This tension is not new; it is a common phenomenon that occurs whenever a paradigm matures. ESG 1.0 was about declaring good intentions, while ESG 2.0 is about design, integration, and sustainable value.
This shift from ESG 1.0 to ESG 2.0 marks a structural pivot—from symbolism to systems. Strategy, finance, operations, supply chain, governance, and culture are no longer parallel tracks; they converge into one operating spine. The CFO becomes the integrator of value, risk, and trust—linking capital allocation, performance KPIs, and stakeholder confidence.
In short, ESG 1.0 was purpose-led storytelling; ESG 2.0 is a value-driven system.
| Area | ESG 1.0 (Old) | ESG 2.0 (New) |
| Strategy | CEO Purpose narrative is about doing good. | Funded transition roadmap: CAPEX/OPEX investment aligned with sustainable value. |
| Finance | Sustainability sits in its silo. | CFO-owned value driver: Revenue up, cost down, risk down, and cost of capital down. |
| Operations | Site-by-site initiatives. | Throughput: Continuous KPI trees with weekly variance control. |
| Supply chain | Surveys, and broad asks. | Contracted supplier rails: Data/evidence packs, audit windows. |
| Governance | Optional participation. | Mandatory compliance: Interwoven into organisational processes. |
| Culture | “Champions” and heroes. | Build trust: Quarterly sprint cadence, aligned with Value–Risk–Trust KPIs. |
Acknowledging this shift is only half the work. Comparison alone is not enough. To make ESG 2.0 a reality, leaders need to develop a shared understanding of the challenges and potential solutions.
To operationalise ESG 2.0, leaders need a refreshed business model. Finding a way to blend strategy, finance, and culture into a single operational and delivery system. To bring ESG 2.0 to life requires treating it like a product
Thinking of ESG like a product reframes the whole transition journey. Products have owners, backlogs, release cycles, and user adoption metrics; ESG should be no different. Each sprint should deliver tangible value, not merely messaging intent.
Treat the transition plan like a product launch with a quarterly roadmap timeline. The CFO is the product owner, while procurement and operations serve as the development team, with assurance serving as QA.
Build scale / sustain/kill gates into the roadmap if a pilot does not move the KPI dial within a certain time frame divert attention to a different initiative.
Identify the product that drives P&L numbers, then build it. The market will not reward the most eloquent product narrative. It will reward teams that deliver outcomes on schedule to address stakeholder needs.
Run ESG like cash flow forecasting: evidence first, then tell the story.
In every quarter, close the books on value, risk, and trust by converting ESG from narrative to operating discipline.
The future belongs to the firms that measure their principles in basis points and basis tonnes. That’s how sustainability becomes not a report, but a results engine.
How is your board re-wiring ESG 1.0 into ESG 2.0?
How could you apply ESG as a product in your organisation?