Many companies have recently lost momentum in their sustainability efforts, quietly pulling back from ambitious environmental goals and diversity initiatives. Publicly traded firms, in particular, often justify this retreat by pointing to a narrow focus on return on investment (ROI). However, reducing the conversation to purely financial metrics risks undermining the very cause sustainability champions have fought so hard to advance.
It’s no secret that the past year has been challenging for corporate sustainability. Not long ago, leading global companies proudly showcased bold commitments to climate action and social equity. Today, many U.S.-based firms keep a low profile on these issues, avoiding public scrutiny or debate. Although the work continues behind the scenes, a sense of disengagement permeates the field.
The reasons are clear: fierce social media backlash against so-called “woke” companies and growing pressure from the U.S. federal government to stall diversity and climate initiatives. As a result, discussions around DEI (Diversity, Equity, and Inclusion) have nearly disappeared—one study showed a 98% drop in mentions of “DEI” in Fortune 100 company reports from 2024 to 2025.
Yet the fundamental drivers of sustainability remain unchanged. We face enormous, shared challenges — climate change, biodiversity loss, social inequality — with urgent deadlines and stakes too high for any business or society to ignore. But it’s difficult to keep pushing forward when sustainability advocates are forced to defend their efforts amid growing skepticism and fear within corporate leadership. This hesitation isn’t limited to sustainability heads; mid-level managers trying to buy greener materials or switch to clean energy increasingly encounter pushback.
How can companies keep up momentum despite these pressures?
Take PepsiCo as an example. The multinational recently revised its sustainability goals to focus on areas like regenerative agriculture and renewable energy, while slowing innovation in plastic alternatives and reusable packaging. This balancing act illustrates the complex path companies navigate today.
The common refrain I hear in boardrooms and sustainability events is that advocates must “get back to the business case.” This demand for clear financial returns is understandable, especially from senior leaders who want reassurance that sustainability investments pay off. Statements like, “We will continue sustainability only if there is a clear ROI,” are increasingly frequent.
Financial discipline is essential, of course. But it’s not new to sustainability work. In my 25 years of experience, no sustainability leader has ever ignored the business rationale. NGOs and activists rightly emphasize moral and existential imperatives, which always influence business discussions. But sustainability proponents have consistently framed their arguments in financial terms—often focusing on long-term value creation rather than short-term gains.
So, the issue isn’t returning to the business case itself—we never really left it. The danger lies in narrowing the discussion to a simplistic ROI mindset, which can seriously harm progress. Here’s why this focus on ROI alone is problematic, followed by five ways companies can rethink their approach.
The Limits of an ROI-Only Focus
- ROI misses the bigger picture.
Traditional financial tools—ROI, IRR, net present value—are helpful but often biased toward short-term, easily measurable outcomes. They fail to capture broader sustainability impacts like resilience, talent attraction, employee engagement, and reputational risk. How do you quantify avoiding fossil fuel price volatility or mitigating human rights risks? What’s the value of improved workforce morale linked to better pay and inclusivity? These intangible benefits translate into very real business advantages.
- Sustainability requires multiple motivations.
As I’ve argued before, companies must act because they need to, must, and want to. They need to address existential threats like climate change and inequality destabilizing society. They must comply with growing regulations and stakeholder demands, from transparency laws in the EU and California to expectations from younger employees and customers worldwide. And they want to capture the value sustainable strategies unlock—through cost savings, risk reduction, innovation, revenue growth, and brand strength.
When people say “get back to the business case,” they often mean only the “want to” part. But all three motivations matter—and together, they create a fuller, more urgent reason to pursue bold action.
- ROI often overestimates costs and underestimates benefits.
The pace of technological progress surprises many. Clean energy like solar and wind are now the cheapest sources in most regions. Electric vehicles cost less to operate over their lifecycle. AI-driven efficiencies in grids, buildings, and transportation are on the rise. What savings might your company miss by not investing now? Underestimating the speed and benefits of these shifts slows meaningful progress—too little, too late to meet the science-based targets we face.
- The simplistic business case reinforces a false narrative.
The persistent myth that sustainability always hurts profits has long been a barrier. Many executives still view sustainability as philanthropy or a “woke” agenda, rather than a strategic driver of long-term value. So when leaders call to “return to the business case,” it can inadvertently imply that past sustainability efforts were a costly mistake, not a strategic choice with lasting benefits.
A Better Path Forward for Leaders
If you’re under pressure to justify sustainability through a narrow ROI lens, start there. But don’t stop. Broaden your argument to include longer time horizons and harder-to-measure value categories.
Remind senior leaders of the “need to” and “must” factors—the real-world, urgent challenges that directly affect business continuity and reputation. Extreme weather disrupts supply chains, regulations tighten, customers and employees demand action.
Resist the urge to retreat or hide your sustainability efforts. Pulling back may seem safer short term, but risks losing customers, facing boycotts, and harming morale—especially among younger talent who seek purposeful work.
Encourage executives to consider the global context. While the U.S. may be slowing down, other markets, like China, are racing ahead with clean tech adoption—over half of new car sales there are electric or hybrid. Businesses must keep pace to stay competitive and relevant.
Finally, help leaders connect sustainability to purpose. Beyond numbers, appeal to their deeper sense of legacy and meaning. Ask them: “What kind of impact do you want to leave? How do your children view your work?” I’ve seen many executives experience a breakthrough when sustainability becomes personal, not just a checkbox.
This moment in American business is rare. The fear of missteps or bad publicity is real. But the urgency and pressure to act have only grown. This is a time for courage—bold moves that protect the planet while securing long-term resilience and relevance.
Stand firm. Speak clearly and confidently. Sustainability is not a detour; it’s the future.
About the Author
Andrew Winston (@andrewwinston) is a globally recognized expert on how to build resilient, profitable companies that help people and planet thrive. He is coauthor of Net Positive: How Courageous Companies Thrive by Giving More Than They Take (Harvard Business Review Press, 2021).
