Conference Board Report Says 80% of Corporations Adjusting ESG Strategies

The Conference Board, a leading nonpartisan think tank providing independent research and insights to organizations worldwide, recently conducted a survey focused on how policy shifts by the new U.S. administration are reshaping the way companies approach sustainability. Our Top Story this issue details key findings of the survey, which showed 80% of companies surveyed are reworking their ESG strategies in response to the policy shifts.

The survey of 125 sustainability executives from large U.S. and multinational companies was conducted between March and April 2025. Findings: 52% of the executives said they are reworking their sustainability messaging, including moving away from the term “ESG.” They cited the reason as a backlash against ESG language and climate goals, with 90% believing that ESG backlash will persist or intensify over the next few years.

78% of executives say the primary driver of this expected backlash is U.S. federal policymakers and regulators. This marked a major shift from two years ago, when activists and advocacy groups were seen as the leading source of ESG backlash.

According to Andrew Jones, author of the report and Principal Researcher at The Conference Board, “recent policy shifts have turned up the heat on ESG, which had already been facing mounting scrutiny.” He does not believe companies will stop implementing ESG strategies but instead will make adjustments. “In most cases, the backlash hasn't made companies back down, but rather pushed them to recalibrate how they approach, communicate, and integrate these issues into their businesses.”

Another key finding of the survey is the sharp impact that tariff turbulence is having on corporate sustainability strategies. 66% of executives are concerned that tariffs or future trade restrictions will impede sustainability goals, with 45% concerned that investments in sustainable operations will be delayed and 42% expecting cost pressures on sustainable materials.

The top challenge for corporate sustainability efforts is regulatory fragmentation, with 49% of executives citing widening gaps in the reporting requirements between state, federal and international regulators.

Jeff Hoffman, Interim Governance & Sustainability Center Leader at The Conference Board, said, “corporate ESG strategies are shifting into a more fragmented, risk-oriented phase. Global regulators and several U.S. states are advancing new standards, even as federal action slows.”

The G&A team is continuously monitoring sustainability regulations and reporting requirements at all levels and will continue to bring you the latest developments. We are available to answer questions and work with you to develop and implement strategies to adapt to the evolving and challenging landscape.For more information contact us at: info@ga-institute.com.

This is just the introduction of G&A's Sustainability Highlights newsletter this week. Click here to view the full issue.