Dr Robin Kennish, Managing Partner of ERMs operations in East Asia provides a summary of ERMs latest Quarterly Trends Report. The Report highlights four key trends shaping sustainability.
Early 2026 is defined by geopolitical instability, trade fragmentation, and AI disruption—forcing companies to shift from aspirational sustainability commitments to pragmatic, value-driven execution.
1) Sustainability that Pays
- Sustainable finance remains resilient, delivering tangible returns despite market and political pressures.
- Reporting is being “simplified and expanded”, balancing transparency with competitiveness.
2) Energy Conundrums
- Surging power demand—driven by electrification and AI—puts “infrastructure constraints” at the center.
- Policy shifts (notably in the U.S.) and geopolitics are reshaping energy markets.
- Energy security is rising alongside decarbonization priorities.
3) Sustainability in the Digital Era
- Data centers and AI introduce a critical question: “who bears the cost of energy and sustainability impacts?”
- Governance and oversight of AI in sustainability programs are emerging priorities.
4) EHS Transformation
- EHS is evolving from compliance to a “strategic value driver”.
- Regulatory landscapes are diverging, with simultaneous expansion and rollback across regions.
Bottom Line
Corporate sustainability is entering a more mature phase—anchored in financial value, constrained by energy realities, enabled (and challenged) by digitalization, and increasingly embedded in core operations.