Significant policy changes are reshaping how many companies approach sustainability, according to a new survey by The Conference Board.
80% of surveyed sustainability executives say their companies are adjusting their ESG strategies in response to the new administration. The most common change is reframing communications: 52% of executives report reworking their sustainability messaging, including moving away from the term “ESG.”
Tariffs also pose a challenge, with 66% saying they will hinder progress on achieving sustainability goals. Almost half (45%) say they will delay investments in sustainable operations.
The study also captures how ESG backlash is evolving: 90% believe it will persist—or even intensify—over the next few years. That’s a rise from 63% just two years ago. The top targets of backlash are climate-related commitments, such as net-zero goals, and ESG-related language.
When asked who is driving the backlash, surveyed executives now point to federal policymakers. It marks a shift from two years ago, when activists and advocacy groups topped the list.
“Recent policy shifts have turned up the heat on ESG, which had already been facing mounting scrutiny. 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,” said Andrew Jones, author of the report and Principal Researcher at The Conference Board.
Findings are based on a survey of 125 sustainability executives from large US and multinational companies, conducted between March and April 2025.
Backlash topics
The biggest backlash targets in 2025: ESG language and climate goals.
- 50% of executives expect net-zero goals or climate targets to be primary flashpoints for backlash
- 34% anticipate backlash tied to use of ESG language or branding
Tariffs
Tariff turbulence is putting new pressure on corporate sustainability strategies.
- 66% of executives are concerned that tariffs or future trade restrictions will impede sustainability goals
- 45% are concerned that trade uncertainty will delay investments in sustainable operations
- 42% anticipate cost pressures on sustainable materials or inputs
Language and strategy
Companies are adjusting their strategies by reframing language and moving away from the term “ESG.”
- 52% of executives say their companies are narrowing or reframing communications, including moving away from the term “ESG”
- 48% are increasing legal and risk review
- 43% are enhancing focus on business ROI and shareholder value of ESG-related initiatives
Sources of backlash
Activists take a backseat. Federal policymakers are now the leading source of ESG opposition.
- Federal policymakers are the top agitator: 78% of executives say US federal policymakers and regulators will be the most significant drivers of ESG backlash
- That’s up from 43% who said the same about this group’s impact over the last two years
- Activists are no longer the main source of pressure: 51% cite activist groups, up from 48%
- But over the last two years, respondents had cited activists as the leading source of backlash
Regulation
Regulatory fragmentation is now the top challenge for corporate sustainability efforts.
- 49% of executives cite widening ESG regulatory and reporting gaps (state-federal, state-state, US-international) as the top concern for their sustainability strategies
- 46% highlight increased scrutiny on DEI practices
- 39% cite rollbacks of environmental regulations
Looking ahead
Corporate leaders brace for a prolonged anti-ESG wave.
- 90% of executives expect anti-ESG sentiment to either increase or persist over the next two years
- In 2023, 61% of executives expected backlash to increase or persist over the next two years
“Corporate ESG strategies are shifting into a more fragmented, risk-oriented phase. Global regulators and several US states are advancing new standards, even as federal action slows and internal corporate momentum stabilizes. Corporate leaders must manage diverging and often conflicting sustainability expectations from employees, consumers, investors, and regulators with greater precision and pragmatism,” said Jeff Hoffman, Interim Governance & Sustainability Center Leader at The Conference Board.
