Although the past year hasn’t been very “tranquil,” sustainability and ESG trends for 2026 are already shaping how businesses must act. If there was a description to summarize the journey so far, that would be turbulence and polarization. Europe, Asia, and the U.S. have experienced political and regulatory tension that has affected sustainability investing, creating doubts as to where ESG is actually heading.
However, despite the uncertainty and backlash in the different economies, global investors have not yet pushed their focus away from sustainability performance. This comes as a reminder to the companies, especially the ones that operate in global markets, to ensure their operations and strategies are resilient as well as to be ready to adapt to the ongoing changes taking place in climate, supply chains, technology, and regulatory areas if they aim to stay competitive and sustainable.
Professionals are called to draw attention to the shifts and strengthen their sustainability skills, as their relevancy has to be continuously worked on to make a difference.
Our team highlights eight of the most significant EGS trends for 2026 onward to help companies and professionals be proactive and responsive to emerging challenges.
One of the notable ESG trends for 2026 is the increasing sustainability pressure on smaller businesses. There is a significant number of small and medium-sized enterprises (SMEs) across the EU and the U.S. markets, which means their role in these economies is vital, including their contribution in employment and innovation. People no longer view the deployment of sustainable practices as an innovative approach exclusive to a select few. Customer and investor expectations place sustainability know-how at the heart of priorities.
In 2026, SMEs will need to provide evidence to support their claims, in addition to any mandatory requirements. For those that wish to climb to the top of the supply chain, it will be necessary to set up policies and include traceable data. Due diligence processes require more than just filling out simple procurement questionnaires. These safety valves demonstrate how resilient and prepared SMEs can be as they detect risks and opportunities. According to EcoVadis (2025), 72% of SMEs still operate without a defined carbon-reduction plan, and this is evidence of the long way they still have to go.
Apparently, SMEs that are new to sustainability reports do not have to produce lengthy and overly formal documents. As long as they have in place a Code of Conduct, environmental, sustainability and human rights policies with clear sections, including their key performance indicators and achievements in an explicit way, they are doing good practice.
ESG trends for 2026 couldn’t leave Artificial Intelligence behind. We are all aware that AI has had a profound presence the last few years, and it is still on the rise. AI’s role in ESG will become even more critical. Firstly, the complex nature of ESG data requires regulators, customers, and investors to seek more granularity. So when analysis and reporting come into play, AI tools provide significant support to companies that need to simplify and accelerate the process of making their claims while also using safeguards against greenwashing.
Companies actively engaging in AI support during their reports facilitate the process when stakeholders look over how expectations and value align. Secondly, AI has demonstrated immense potential for preventing social and environmental harm. At this stage, it’s crucial for professionals in oversight roles to continually build a clear and thorough understanding of how AI can help with sustainability and to be aware of its potential biases.
One of the ESG trends for 2026 involves nature-related reporting. Companies expected to measure and report their impacts on biodiversity and natural capital will face increased requirements in the upcoming year. Major pressures such as habitat change and degradation, overexploitation of species, and climate change are reaffirmed globally and regionally. It is important to start closing the gap between ambition and action, as there is little time for progress according to targets set by existing frameworks (Kunming-Montreal Global Biodiversity Framework). Regulators will keep pushing for change, such as with the EU and the Nature Restoration Law that will require EU member states to adopt national restoration plans by 2026.
The High Seas Treaty, a global legal framework to establish protected areas in the high seas and mandate management plans for these areas, has been in the making for almost two decades and will be legally effective in January 2026.
The TNFD (Taskforce on Nature-related Financial Disclosures) will push organizations to manage and mitigate their ecosystem degradation-related risks. Technology advances come as a strong supporter in the process of improved tracking and decision-making, so experts and professionals can benefit from this as they make their efforts to measure and report their environmental impacts.
We have consistently stressed the long-standing recognition of greenwashing as a serious issue. Despite the ambiguous horizon, regulators are still willing to help in the fight against greenwashing; a robust framework that clarifies the “vague” landscape of sustainability claims is still under discussion. Sustainability professionals need to be aware of the following scenario: either the EU Green Claims Directive will be finalized in 2026 with a later implementation date, or if it is not adopted, the EmpCo (Empowering Consumers for the Green Transition Directive) will serve as a related regulation starting on 27 September 2026. Even though the GCD proposes more robust verifications, businesses will still have to prepare this year and ensure their claims are transparent and backed by evidence.
Ahead of any binding rules or regulation outcomes, businesses that focus on “clean” green practices not only will be ready for the possible roll-out of stricter rules but also will have gained the customers’ and investors’s trust in the long run. Customers, after all, are the first to abandon “air talk” when they discover deception. Then the financial and reputational damage will be difficult to reverse.
ESG trends for 2026 include assurance. Despite the non-stabilized regulations in the EU and the political shifts in the US, there are many organizations subject to mandatory disclosures, facing their first cycles of assurance around sustainability information. The demand for assured data is expected to intensify, especially for larger organizations that will have to engage in more detailed auditing of their sustainability reports, including scope, methods, and standards.
The whole point of quality assurance is to ensure more profound reviews regarding data collection, controls, and methodologies, and although it can be challenging in terms of costs and capacity, it plays a critical role in businesses’ access to capital, stakeholder trust, risk management, and reputation. SMEs, even if they don’t have to do it by law yet, will start feeling the need for assurance in 2026, and they will need to begin gathering reliable data and value-chain certifications for their stakeholders to be ready and avoid making weak sustainability claims.
Unlike financial assurance, assured sustainability disclosures are still evolving, meaning that they might lead to inconsistencies. Nevertheless, companies of all sizes must adhere to valid reports that demonstrate that their performance is improved and meets sustainability goals, rather than just viewing it as a “ticking the boxes” process.
2026 is expected to be an evolving year for sustainable finance and everything that encompasses the market, such as green and sustainability-linked loans. More specifically, investors, regulators, and rating agencies will demand more rigorous impact metrics in reporting, which will undergo thorough examination as innovative finance emphasizes real, measurable results rather than just labels. Sectors such as airports and ports will need to fully align their ESG data with recognized standards like the International Capital Market Association (ICMA) and the EU Taxonomy. The result is a financial opportunity for adopting renewable energy and investing in decarbonization projects and other upgrades. Access to sustainable capital presupposes that companies are capable of showing solid ESG performance that has visible room for improvement.
Transitioning to a net-zero economy is now taking more solid steps and moving from the planning phase to the delivery of outcomes. However, the effort requires collaboration among governments, communities, and businesses to ensure equitable and inclusive progress. The EU’s Just Transition Fund and new Social Climate Fund are giving out significant funding to help coal-dependent and weak areas retrain people, diversify their industries, and soften the social effects of new carbon pricing.
On a global level, the UN’s Just Transition Work Programme and initiatives like South Africa’s and Indonesia’s JETPs are entering implementation phases, linking climate finance to equity and decent work. There are challenges, however, to closing the economic and capacity gaps, as “fairness” is difficult to measure. 2026 will be a pivotal year, and companies must cooperate to provide equal opportunities to all employees for reskilling and upskilling as they implement new technologies and upgrade their operations to deliver social justice and stability.
Last but not least, business resilience is one of the most significant ESG trends for 2026. ESG strategies need to be reassessed to show how companies can bounce back and adjust to important issues like climate change, supply chain problems, and global conflicts. A superficial approach will not be enough. Businesses are called to organize their operations and prepare them against physical climate risks. Test different scenarios and make them part of their overall financial and operational planning. ESG reports should adapt accordingly by promoting not only how companies reduce emissions but also how they actively plan a long-term progression.
Being sustainable equals resilience, and the companies that bypass any preparation to encounter ESG shocks jeopardize their finances, operations, and reputation. Maritime and aviation are characteristic examples of industries that should consider adaptation strategies that enhance both safety and competitiveness in a changing climate.
