EcoVadis Insights: U.S. Companies Double Down on Sustainability Amid ESG Backlash
Overview
Despite growing political scrutiny and regulatory uncertainty, U.S. companies are not backing down from sustainability. A new EcoVadis report reveals that 87% of large firms are maintaining or increasing their ESG budgets in 2025—even if they’re talking about it less.
Sustainability Spending Stays Strong
According to EcoVadis’ 2025 U.S. Business Sustainability Landscape Outlook, 87% of U.S. companies with over $1 billion in revenue are either maintaining or increasing their sustainability budgets this year. This commitment comes despite a heated national debate over ESG (Environmental, Social, and Governance) policies and attempts to roll back regulations
The Rise of “Greenhushing”
Interestingly, nearly one-third of executives admit to “greenhushing”—investing in sustainability while reducing public communication about it. In fact, 8% have gone completely silent, even as they continue to fund ESG initiatives. This trend reflects a strategic shift: companies are prioritizing action over publicity in a politically charged environment.
Sustainability as a Strategic Advantage
Far from being a PR move, sustainability is increasingly seen as a business imperative:
65% say it enhances growth, resilience, and customer retention.
62% believe it improves customer loyalty.
52% of finance leaders view it as a driver of long-term value
Regulatory Risks and Data Challenges
Despite efforts to weaken ESG regulations, nearly half (47%) of C-suite leaders warn that removing these rules could disrupt supply chains. Another 59% fear it could lead to increased labor abuses. Yet, compliance remains a challenge: only 13% of companies are on track to meet major ESG regulations like the CSRD, CBAM, SB-253, and Canada’s Modern Slavery Act.
Alarmingly, 33% of executives admit to submitting ESG data they knew wasn’t fully accurate. Still, most are working to improve:
57% use ESG risk mapping tools
49% have supplier engagement platforms
34% are mapping their supply base
89% plan further tech investments in the next year
The message is clear: U.S. companies are not abandoning ESG—they’re evolving their approach. As the political climate intensifies, businesses are quietly investing in sustainability, recognizing it as a cornerstone of resilience, growth, and long-term value.
