CEOs are more committed than ever to sustainability
Amid tough targets and politicization, CEOs’ commitment to ESG is failing to slow, says John McCalla-Leacy, global head of ESG, KPMG International.
In a world grappling with persistent geopolitical tensions and economic uncertainties, it would be easy for corporate leaders to retreat from long-term strategic goals, especially those perceived as less immediately impactful on the bottom line, but the KPMG 2025 CEO Outlook reveals a compelling and encouraging trend. A significant majority of CEOs are not only maintaining their commitment to sustainability but are also growing more confident in their ability to achieve ambitious net-zero targets. This is a powerful signal that, despite increased politicization of the topic, sustainability is now a core pillar of resilient and future-proof business strategy.
The findings from our recent survey of more than 1,300 global leaders paint a picture of cautious optimism, even as CEO confidence in the global economy has dipped to its lowest level since 2021. Despite these headwinds, leaders are adapting their growth strategies, focusing on strategic investments in AI, talent, and risk resilience to sustain and fuel future growth. What’s particularly striking is how deeply intertwined sustainability has become with these priorities.
A notable highlight from the CEO Outlook is the significant increase in confidence regarding net-zero goals. A majority of CEOs—61%—now express confidence that they can meet their net-zero targets by 2030. This marks a substantial jump from 51% in 2024, indicating a strengthening belief in the attainability of medium-term climate ambitions within the corporate world. This isn’t just wishful thinking. It reflects a growing understanding that sustainability is not merely a compliance exercise but actually a driver of business resilience, innovation, efficiency, and competitive advantage.
This commitment is particularly impressive given the complex landscape CEOs are navigating today. The survey reveals that while attitudes toward sustainability may vary across regions, the overarching sentiment among corporate leaders is a strong dedication to their sustainability goals. KPMG International’s findings shine a light on a maturing perspective, where environmental, social, and governance (ESG) initiatives are seen as integral to navigating market volatility and building long-term value.
The focus on sustainability also aligns with the broader strategic shifts we are all observing right now as the business community pivots, adjusts, and refocuses in the face of economic uncertainty. Leaders are sharpening their focus on strategic investments in innovation and talent. AI remains a top investment priority, with 69% of CEOs planning to allocate 10% to 20% of their budgets to AI over the next 12 months. While the ethical implications, data readiness, and lack of regulation surrounding AI are acknowledged challenges, the prevailing sentiment is a commitment to a people-led deployment of new technology. This human-centric approach to technological adoption can, and should, extend to how companies implement their sustainability strategies, ensuring that the benefits are widespread and equitable.
Furthermore, the emphasis on talent development, with 77% of CEOs highlighting workforce upskilling as a challenge and 70% concerned about competition for AI talent, underscores the need for a skilled workforce capable of driving both technological and sustainable transformations. Integrating ESG principles into talent development and retention strategies can attract and retain the best minds, who increasingly seek purpose-driven organizations.
The KPMG 2025 CEO Outlook provides compelling evidence that corporate leaders are more committed than ever to sustainability. Despite a challenging global environment, CEOs are demonstrating courage and foresight by embedding ESG into their core strategies. This unwavering dedication, coupled with strategic investments in AI and talent, positions businesses not just to survive but to thrive and contribute to a more sustainable future. The path ahead may be complex, but the resolve of global CEOs to build a better, more sustainable world is clear and stronger than ever.
Note: This content was created by KPMG International.