ESG Monthly News Update: July 2025
Resilience Under Pressure, Clarity in Uncertainty: July Sustainability Insights
If June was about sustainability systems maturing, July reminded us just how stress-tested those systems now are. Amid intensifying physical climate impacts, political headwinds, and shifting regulatory expectations, the signal is clear: resilience is no longer optional—it’s a baseline for credible business.
Across markets, the durability of sustainability commitments is being tested. Some companies have walked back climate targets or are muting public language around sustainability. And yet, the core work continues. From climate-integrated disclosures to net-zero investment strategies, businesses that have embedded sustainability into operations aren’t retreating; they’re adapting.
This month also spotlighted the critical role of public policy in shaping sustainability outcomes. Governments that provide clear, long-term direction are becoming magnets for capital and innovation, while risks of policy backsliding slow progress. Meanwhile, global leaders are sounding the alarm on energy demands from AI and the urgency of aligning new technologies with climate goals.
Even as the sustainability narrative becomes more complex—and in some cases, quieter—momentum persists. Companies are doubling down where it matters most: in governance, physical infrastructure, and strategic planning. And stakeholders are watching, not just for what’s said, but for what’s sustained.
At Summit Strategy Group, we help clients build sustainability strategies that hold up under pressure. Strategies that connect climate ambition with business resilience and stakeholder trust. Let’s talk about what that looks like for you. Reach out today.
Contributor Spotlight: Brandon Suchan
Brandon Suchan is a Manager of ESG Consulting at Summit Strategy Group, where he helps clients navigate their sustainability journey by conducting greenhouse gas emissions inventories, developing sustainability reports, and crafting strategic plans. With a background in data collection, analytics, and corporate sustainability, Brandon drives brand value through impactful storytelling and communication, leveraging both quantitative and qualitative insights.
Contact Brandon
What We Read in July 2025
How the anti-ESG movement is reshaping corporate sustainability reports
Trellis, July 2, 2025
Despite a rise in anti-ESG sentiment and reduced use of ESG language (e.g., DEI and climate mentions), most companies are still maintaining, and in some cases enhancing, sustainability disclosures due to regulatory requirements and strategic integration.
With increased scrutiny, only companies that have genuinely embedded ESG into operations continue reporting. This shift makes sustainability disclosures a more reliable indicator of strategic alignment, risk management, and long-term value creation.
Fewer public shareholder proposals and more behind-the-scenes investor engagement suggest ESG remains important, just less publicly discussed. Companies should expect growing expectations for measurable impact, even if external pressure appears to be receding.
Businesses urge EU not to weaken sustainability rules
Reuters, June 30, 2025
The European Commission is considering exempting companies with fewer than 1,000 employees from reporting requirements — a change that could remove over 80% of covered businesses. Some lawmakers are pushing for even higher thresholds, drawing pushback from those who see the rules as essential for transparency and responsible business conduct.
Over 100 organizations, including EDF, Nokia, Allianz, and IKEA’s parent company, argue that corporate sustainability reporting and supply chain due diligence rules enhance competitiveness, support long-term value creation, and help manage climate risks.
While open to refining the rules, companies advocate staying the course on sustainability leadership. They support applying reporting standards to companies with more than 500 employees and requiring clear climate transition plans, to maintain EU momentum on green growth and investment.
A majority of companies are already feeling the climate heat
Bloomberg, July 3, 2025
Over half of companies surveyed in a recent Morgan Stanley report experienced operational impacts from climate-related events in the past year—like increased costs, worker disruption, and revenue loss—primarily due to extreme heat, storms, wildfires, and water-related issues.
90% of South American companies expect climate risks to threaten their business models by 2030, citing raw material challenges and outdated manufacturing processes. Meanwhile, the U.S. alone has spent $1 trillion on climate-related recovery efforts in just the past year.
While many regions view sustainability as a value driver, political volatility—particularly in the U.S.—is a major obstacle. This has led to “greenhushing” and even rollback of climate targets by some companies, despite ongoing exposure to climate risks.
Governments with clear net-zero policies capitalize on global business investment, new report finds
World Business Council for Sustainable Development, June 23, 2025
The Business Breakthrough Barometer 2025 report, developed by WBCSD, found that 94% of business leaders say supportive transition policies directly shape their investment decisions, and 96% believe governments should stay committed to net-zero goals. Policy uncertainty, especially in countries like the U.S., is making some markets less attractive for low-carbon investment.
92% of leaders agree that failing to act on climate will cost more than the transition itself, with 61% expecting climate-related disruptions to drive up business costs this year. Businesses increasingly see climate action as essential to managing risk, ensuring resilience, and maintaining competitiveness.
Investment is surging in mature clean sectors like renewable power and electrified transport but stalling in emerging areas like clean hydrogen due to weak policy signals. Governments that provide long-term certainty and industrial strategy (e.g., UK, China, India) are becoming magnets for transition capital.
AI should run on 100% renewable energy by 2030, UN Chief says
Bloomberg, July 22, 2025
United Nations Secretary-General António Guterres called on major tech firms to fully power their data centers with renewables by the end of the decade, citing the massive energy demand of AI systems, which could consume as much electricity as Japan by 2030.
In addition to clean power, firms must reduce water use for cooling and help stabilize increasingly volatile grids, as renewable energy capacity scales up globally.
While clean energy is now cheaper than fossil fuels, in most cases, investment remains highly concentrated. Companies must push for inclusive, global progress to ensure a just and sustainable transition, especially in underfunded regions like Africa.
