Why is ESG declining?

The perception of decline is driven by political backlash, inconsistent metrics and reporting fatigue - not a genuine retreat from sustainability risk management.

In the US, federal and state-level opposition has led to rollbacks of climate disclosure rules and anti-ESG legislation. Critics frame ESG as ideological overreach that raises costs and restricts business decisions. Overlapping reporting standards created duplication, and high-profile greenwashing cases undermined trust.

Many organisations now practise "greenhushing" - continuing sustainability work quietly while avoiding public ESG language.

Mandatory disclosure frameworks are expanding, not contracting. The EU's CSRD, ISSB standards and UK SRS are raising the bar for credible reporting. What looks like decline is a market correction - away from vague commitments and towards auditable, decision-useful data.