ERM Shelton Stat of the Week

67% of people around the world say they are “very/extremely interested” in hearing from companies about their efforts to reduce their environmental impact. Global Eco Pulse®, 2025

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2025 was a tough year — around the world and here in the U.S. Layoffs rose, prices stayed stubbornly high and a new existential threat emerged: AI and its implications for another existential threat, climate change. Businesses faced uncertainty around tariffs and shifting regulations, and the administration made its disdain for corporate policies related to people and the planet clear — all of which created an unsteady landscape for both companies and individuals.

Against this backdrop, sustainability and sustainability communications took a hit. Many companies quietly dialed down their commitments, some fired their sustainability leaders and others just went silent. Let’s unpack what we saw this year — and what we think it means for 2026. 

Observation 1: Pullback on the words “sustainability” and “climate"
Out of fear of being called out by the “woke police,” we saw several companies and brands dial down their use of the words sustainability and climate. This isn’t necessarily a bad thing — people don’t always understand what the word sustainability means, and while they’re acutely aware of climate change and very concerned about the impacts in their kids’ lifetimes, it doesn’t feel like something they can directly address with an action. Words like resiliency, nature, responsibility and purpose play well — provided that they’re tied to specific commitments and tangible actions. We expect to see more companies making this language shift in the year to come. 

Observation 2: Reporting is getting refined and reimagined 
The EU’s CSRD delay rippled globally. Many companies were gearing up, putting in the time to create the data they’d need to be compliant, and the pause made many companies wonder if they needed to proceed. And regardless of how or if they proceeded with all the work to get their environmental and social data in order, they were left wondering, “What should my report be like now?” We saw some companies proceed as they always have, while others dialed back. Still others published data updates and created more of a narrative online.  

The question to answer in 2026 and beyond is: How can reporting be managed so it checks the compliance boxes and communicates the storytelling that employees, customers, communities and even some consumers wants to see? We think it’s time to decouple the stories from the report and fully leverage comms channels to get the great stories out to the audiences who most want to hear them.  

Observation 3: Trust in institutions hits new lows 
According to the Edelman Trust Barometer, trust is down across the board (from government to medicine to corporations) and people are pissed off. Once upon a time, I wrote in this blog that people were looking to companies to solve what feels broken, but faith is down there, too. Frankly, companies pulling back on commitments for people and the planet will only deepen consumer skepticism — impacting not just public perception but employee morale. Companies that go silent on sustainability now, only to start communicating again in a few years when the politics have changed, risk looking like bandwagon jumpers at best and spineless and untrustworthy at worst. And trust has become a currency brands must fight to retain. To put a fine point on it, Kantar's data shows perceptions on sustainability contribute up to 10% of the value of the world’s largest brands. 

Observation 4: Misinformation threatens sustainability claims 
The spread of misinformation — and the rise of generative AI — introduced new risks: inaccurate claims, misattributed data and potential reputational damage. This is driving a push toward Generative Engine Optimization (GEO) — ensuring claims are verifiable and machine-readable so AI scrapes accurate information and directs users to your site. All companies would do well in 2026 to get support from their comms agencies to ensure AI doesn’t turn your organization or brand into a greenwasher. 

Observation 5: Utilities and tech face a new narrative challenge 
As AI adoption accelerates, so does demand for data centers — and the energy to power them. In 2026 utilities and tech companies will need to communicate clearly about grid resilience, renewable integration and trade-offs to maintain trust and manage expectations. And, like almost all things in life, this will work much better — and cost less — if companies communicate about it proactively instead of waiting until the torches and pitchforks show up at the proverbial door.  

Closing thoughts: 
Compelling sustainability communications is about clarity, credibility and connection in a world of uncertainty — it's not just about climate and emissions. As we move into 2026, brands that lead with authentic language, transparent reporting and proactive reputational management will stand out, and attract & retain customers, consumers and employees. Here's to that — have a wonderful holiday season and we’ll see you in the new year!