Thrive is Five - Part II
Five years into Thrive, the sustainability landscape has transformed. While Part I reflected on Thrive’s journey, this section explores where businesses stand today and what’s next.
With rising regulations and shifting market demands, companies must adapt or risk falling behind. So, where do we stand? And how can businesses turn sustainability into a lasting advantage?
Let’s take a look.
What’s Next for Corporate Sustainability?
When I think back to the conversations we were having 5 years ago, I realise how far the agenda has come in many respects. Triggered by the introduction of legislation over recent years, large companies and investment firms have a developed, detailed and, in most cases, integrated plan to make sure their organisation is improving their impact on the outside world (mitigation measures) while making sure they are well-prepared for the future (adaptation measures). For larger entities, sustainability or ESG (Environmental, Social and Governance) has therefore become, as a minimum, a compliance issue.
The Supply Chain Effect
Sustainability expectations have trickled down. Most of a company's impact - financial and non-financial - sits within its supply chain. That means suppliers, regardless of size, are being held to higher standards. They now need a mature sustainability position, a clear plan, and real data to back it up.
Are We Actually Making Progress?
It’s hard to say. Global Greenhouse Gas (GHG) emissions are still rising. The world has breached its warming targets. Inequality remains rampant, and the US is experiencing a strong anti-ESG backlash.
But there is progress:
Record investment in clean energy. In 2024, over $2 trillion was invested in the energy transition, the highest level ever. (BloombergNEF)
Gender equality is (slowly) improving. - ‘Over the past decade, women’s representation has increased at every level of corporate management (Exhibit 1). Most notably, women today make up 29 per cent of C-suite positions, compared with just 17 per cent in 2015’ (McKinsey)
Global reporting standards are taking shape. Over 20 jurisdictions have adopted or plan to adopt ISSB Non-Financial Reporting Standards to increase transparency. (S&P Global)
A Little Perspective
We can’t ignore the recent political chaos in the US, resistance from short-term economic interests in Europe, and general fatigue around corporate sustainability commitments. Still, it’s worth putting this into perspective, and this version of Gartner’s Hype Cycle, made by the folks at Sirius recently, tells the story well.
As the graphic highlights, the sustainability journey has followed a familiar pattern.
We began with the Trigger Period, when companies rushed into Net Zero commitments, often without fully understanding what was required to deliver them. Then came the Peak of Inflated Expectations, where ambitious sustainability goals gained momentum but, in many cases, lacked the substance needed to succeed. The inevitable backlash followed, pushing us into the Trough of Disillusionment, where budgets were cut, greenwashing lawsuits emerged, and scepticism around ESG took hold.
Now, we are entering the Slope of Enlightenment. Companies are moving beyond hype and making realistic, detailed climate transition plans. Reporting and disclosure are becoming tools for value creation, not just compliance. Eventually, this will lead us to the Plateau of Productivity, where standardisation and best practices become the norm, delivering consistent value for organisations that embed sustainability into their operations.
Sustainability as Business as Usual (BAU)
Whilst long-term predictions are impossible, we can already see key trends shaping the mainstream adoption of sustainability principles.
Here are a few of our observations:
Sustainability is Now a Prerequisite for Growth for all B2B Companies
Mid-market companies (£10M–£800M revenue) are feeling the pressure.
Why? Large buyers now require their suppliers to meet sustainability criteria before doing business.
Procurement processes demand granular data and targets; without it, trade doesn’t happen.
2. Access to Finance is Increasingly ESG-Linked
Sustainability-Linked Loans (SLLs) are booming.
Borrowers aligning with frameworks like the Green Loan Principles qualify for favourable lending options.
Banks like Barclays and HSBC provide much more favourable lending conditions when there are measurable sustainability targets and outputs.
3. Adapt or Die: Resilience is Non-Negotiable
Physical risks (climate change, extreme weather, supply chain disruptions) are growing.
Companies must assess their long-term resilience.
Large companies are required to formalise this under TCFD (Task Force on Climate-related Financial Disclosures) regulation, and mid-sized businesses aren’t far behind.
As the CEO of the Institute for Sustainability Leadership said in 2024:
”Businesses and governments must stop limiting ambition only to win-wins and selling the illusion of painless transitions. Instead, they must focus on the trade-offs necessary for long-term resilience. The business agenda needs to look beyond these myths to the action required.”
4. Investor Demand Is Driving Transparency Through Regulated Reporting
The EU’s Corporate Sustainability Reporting Framework is raising standards. (including CSRD and CSDDD*)
ISSB is working to unify sustainability reporting across jurisdictions.
5. The Rise of Greenhushing
Some companies are choosing not to publicise their sustainability work.
Why? Fear of greenwashing lawsuits and political backlash.
Instead, they are embedding sustainability quietly, just as they do with health and safety compliance.
What This Means in Practice
In an economic downturn, sustainability budgets are often first on the chopping block. But companies that stay the course are winning.
What sets them apart? They focus on impact by:
1. Focusing on What Matters
Getting laser-focused on material ESG issues that impact their business and customers.
Using Materiality Assessments to provide clarity and direction.
Using technology to ease implementation, data collation and reporting.
2. Applying the Commerciality Test
Aligning sustainability initiatives with business priorities.
Linking ESG goals to employee objectives, driving buy-in and results.
3. Getting in the Driver’s Seat
Taking ownership of their ESG performance and talking about it confidently and proactively rather than only reacting to ad-hoc data requests from investors.
4. Creating Long-Term Value
Sustainability isn’t just about risk mitigation; it’s about competitive advantage.
Treating sustainability as value creation, not compliance, will thrive.
The Bottom Line? Economics Drives Change, Not Politics.
While political winds are unpredictable, the business case for ‘sustainability’ has never been stronger. When the financial risks of inaction are quantified, the costs are astronomical. (WEF Report)
And that brings us full circle…
Why We Started Thrive Five Years Ago
Our mission hasn’t changed.
Sustainability and commercial value are two sides of the same coin.
Although the agenda has shifted, the foundation remains solid: businesses that embed sustainability into their strategies not only survive but thrive.
If you think Thrive could support your business's sustainability journey, contact us today.
*Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive