The Conference Board Insights: How Companies Are Adapting to a Shifting Policy Landscape
Overview
The Conference Board has released its latest insights, “Sustainability Under Scrutiny: Corporate ESG in an Uncertain Policy Environment”. In 2025, ESG strategies are undergoing a major transformation. Amid political pressure and regulatory shifts, companies are rethinking how they communicate and implement sustainability goals
A New Era for ESG Strategy
A recent survey by The Conference Board reveals that 80% of corporations are actively reworking their ESG strategies in response to significant policy changes. The most common adjustment? Language. Over half of the surveyed executives (52%) are moving away from the term “ESG” altogether, opting instead for more business-aligned messaging that emphasizes ROI and shareholder value. This shift reflects a broader trend: ESG is no longer just about values—it’s about strategy, risk management, and long-term performance.
The Backlash Is Real—and Growing
The ESG backlash is intensifying. 90% of executives believe this resistance will persist or even grow, up from 63% just two years ago. The primary targets? Climate-related commitments like net-zero goals and the very use of ESG terminology. Interestingly, the source of this backlash has shifted. While activists once led the charge, federal policymakers are now seen as the top agitators, cited by 78% of executives. This marks a significant change in the political dynamics surrounding corporate sustainability.
Tariffs and Trade: New Headwinds for Sustainability
Tariffs are emerging as a major obstacle. 66% of executives say trade restrictions are hindering progress toward sustainability goals, and nearly half (45%) report that uncertainty is delaying investments in sustainable operations. These economic pressures are forcing companies to reassess not just their ESG goals, but the feasibility of achieving them under current market conditions.
Strategic Shifts: From Compliance to Value Creation
In response to these challenges, companies are doubling down on legal and risk reviews (48%) and sharpening their focus on the business value of ESG initiatives (43%). This pragmatic approach signals a maturing ESG landscape—one where sustainability is integrated into core business strategy rather than treated as a standalone initiative.
Despite the backlash and policy headwinds, companies aren’t abandoning ESG. Instead, they’re adapting—reframing their language, reassessing their strategies, and reinforcing the business case for sustainability. The ESG conversation is shifting, but it’s far from over.
