ESG Council Report 2025

• 90% of Ipsos ESG Council Members say that ESG is fundamentally changing the way businesses operate
• However, 55% believe some corporate leaders are diluting their ESG commitments
• And 45% spend more time dealing with reporting requirements than delivering on actual ESG priorities
• Report identifies AI’s potential to accelerate progress by revolutionising data analysis

A new report from Ipsos, one of the world's leading market research companies, reveals a concerning disconnect between ambition and action when it comes to Environmental, Social, and Governance (ESG) factors.

The Ipsos ESG Council 2025 Report – based on in-depth interviews with more than fifty sustainability leaders across thirteen markets – focuses on the challenges facing Chief Sustainability Officers. The report finds that ESG factors are increasingly integrated into corporate strategy, but critical hurdles must be overcome to ensure the long-term viability and impact of ESG, including implementation, reporting, and political polarisation.

Sue Phillips, Global ESG Lead, Ipsos, said: 

While Council Members recognise ESG's transformative impact, this report also exposes a stark reality: a significant gap persists between ambition and action. A genuine commitment to ESG is a fundamental driver of long-term value creation, resilience, and trust. However, many companies are grappling with demonstrating clear ROI and navigating the fragmented reporting landscape.  Our findings underscore the urgent need for greater transparency, standardised metrics, and a renewed focus on embedding ESG principles into the very core of business operations.

The report exposes the critical challenge of translating ambition into action, as more than half of Council Members (55%) believe that some corporate leaders are diluting their ESG commitments. This is reflected by the growing political and shareholder backlash against sustainability initiatives in the US, which has resulted in several large American corporations dropping DEI policies and stepping back from climate change groups in recent weeks.

Given the tensions between short-term profits and long-term sustainability, the need for more effective communication of the value of ESG has never been greater. However, many Council Members struggle to demonstrate return on investment (ROI) for ESG initiatives. While the research finds that a growing number of companies recognise the importance of ESG (90% of Council Members say that ESG is fundamentally changing the way businesses operate) and are integrating it into their core strategies, quantifying the financial benefits of these initiatives can be complex and challenging.

The report probes the causes of these issues – which range from the long-term nature of many ESG goals, to inconsistent metrics, and the challenge of isolating the specific financial impact of ESG initiatives – and shares solutions adopted by Council Members, such as integrating ESG considerations into financial decision-making, leveraging established frameworks, and focusing on long-term outcomes.

Although helpful to some Council Members in demonstrating the value of their work, the broad consensus is that ESG Reporting is more of a hindrance. An overwhelming 83% agree that key performance indicators (KPIs) and standards are too fragmented, creating a confusing and burdensome reporting landscape which makes progress measurement and comparisons between organisations difficult. 60% of Council Members say that colleagues find regulatory guidelines difficult to understand and implement, and 45% spend more time dealing with reporting requirements than delivering on actual ESG priorities.

With ESG becoming a political football, companies must navigate a complex and often contentious landscape. Encouragingly, the research suggests that businesses are getting better at crafting compelling ESG narratives. Only one in six Council Members (16%) say they find it difficult to tell stories about sustainability that resonate with stakeholders, indicating that stakeholders remain receptive to hearing about ESG, and eager for organisations to continue to drive positive change.

Looking to the future, the report identifies opportunities for improvement, particularly in leveraging the power of technology. Only 23% of Council Members have so far significantly incorporated Artificial Intelligence (AI) into their ESG strategies. Greater adoption could revolutionise ESG data analysis, reporting, and impact measurement, enabling companies to gain deeper insights and drive more effective action, and allowing sustainability professionals to spend more time focusing on implementation.

The Ipsos ESG Council 2025 report provides a critical roadmap for businesses seeking to navigate the complex ESG landscape and demonstrates how organisations can overcome hurdles to turn their ESG ambitions into tangible results.