ESG: It’s Not Dead. It’s More Relevant Than Ever in 2026

Scan the headlines in investment, stakeholder, or business media, and you’ll soon land on articles heralding the diminishing, the demise, or simply put, the death of environmental, social, and governance (ESG) frameworks and policies. 

As the world continues down a path of climate catastrophe, severe economic uncertainty, anti-woke sentiment, and contemporary power brokers’ blatant disregard for well-established governance, it’s no wonder leaders of the corporate world are asking the following questions.

Is ESG still relevant in 2026? Or is a complete dismantling of ESG practises just around the corner? 

The short answer to the first question: Yes, ESG is still relevant. And to the second one: No, companies and organizations shouldn’t completely abandon this work.

That said, ESG frameworks are indeed operating in an extremely unstable environment full of hostility and hurdles.   

As a result, attitudes and approaches towards ESG, DEI, and SLO have changed (because they’ve had to). But if you look closely there’s strong evidence that companies and governments aren’t abandoning ESG frameworks and regulations. 

ESG isn’t going anywhere. And this is how we know.   

While Some Withdraw, Others Double Down

America’s ESG policy pivot was bound to draw huge attention. And it’s easy to globalize the actions of a single superpower — Well, if America is doing it, it won’t be long until the rest of the world follows suit. 

But that’s not happening. 

ESG frameworks and directives are bigger than America and its economy. Other countries, including the EU, continue to back ESG assets. 

Taking the block as an example, its regulatory Corporate Sustainability Reporting Directive (CSRD) is in full flow. And, to address the elephant in the room, yes some of the recent legislation changes may be perceived as a watering down of the Directive. But it’s still commanding clout. Approximately 50,000 of the largest companies operating in Europe must disclose ESG data by 2029. That’s a considerable amount of business.

Meanwhile, in the Southern Hemisphere, large Australian corporations and financial institutions have entered their second year of mandatory climate reporting. 

Since the introduction of the Australian Sustainability Reporting Standards, companies are settling into a world where transparent and consistent emissions reporting is essential. And the world is watching. Australia is one of the first economies to introduce a framework that closely aligns with the International Sustainability Standards Board. 

And how about the UK? Well, a recent UK High Court ruling tells us where it stands on ESG.

The 2015 Fundao Dam Collapse in Brazil killed 19 people, polluted the river, and obliterated hundreds of homes. A decade later, the UK High Court ruled BHP responsible for the collapse. It’s a reminder to industry that there are countries upholding ESG frameworks. And they will hold firms accountable for poor governance.   

Predicted ESG Asset Rises Are Still Relevant 

A 2024 Bloomberg Intelligence forecast suggested that global ESG assets are set to hit $40 trillion by 2030. Admittedly, this forecast was delivered before potential (primarily US-based) blows to ESG, like:

• The US’s withdrawal from the Paris Agreement (again)
• Indefinite delays to green energy projects or their complete cancellation 
• Attacks on social and governance issues relating to diversity, equality, inclusion, and accessibility (DEIA). 

Since publishing this ESG-affirming report Bloomberg Intelligence has not offered any further information or data to back those findings. But there’s also been nothing published to the contrary. Could the silence be a muted acknowledgement that ESG is still a viable line of investment for modern, forward-thinking companies? Maybe, and there’s some anecdotal evidence from the recent World Economic Forum (WEF) that might back that idea up.

Same Work, New Language 

The WEF wasn’t short of dramatic talking points. (Mark Carney, #amiright?) But there was one ESG-related theme that caught my attention — and confirms to me that it isn’t dead — there were reports alluding to how the corporate world is responding to ESG-hostility. 

They’re not quitting on ESG, DEIA, and social licence work. But they are changing the language around it to avoid potential repercussions and accommodate the ongoing political turbulence.

For example, in this Reuters report.

A European tech company executive was quoted as saying they’re not stopping the ESG and DEI work they’ve done. “For many years, we have worked to shape a more sustainable, equitable world. It’s rooted in our company culture.” That kind of strong sentiment shows the whim of a single political party isn’t enough to strike down this firmly established movement. 

Other commentators emphasized that the way they operate isn’t “a tick-box exercise,”  and that they make sure their workforce is filled with “the best talent…from wherever it may be.”

ESG language has become guarded, veiled in a lexicon that’s acceptable to the political climate. But read carefully, and the intent and actions are still there. The world is continuing to support and implement the progressive, forward-thinking policies that were coming to fruition pre-2024.

More Floods, More Fires, More Disparities — More Evidence ESG Matters 

The challenges and inequities ESG frameworks are built to address are more apparent than ever. In short, the work is more crucial than ever. Investors are recognizing this. 

The WEF’s Global Risks Report is a pretty bleak read in places (‘Declining trust, diminishing transparency and respect for the rule of law…’) but it also offers hope. 

It reveals that, for most of the 1,300 experts interviewed, ESG issues are still driving their business decisions. The condition of the world’s climate, the way in which we work, and the way corporations are held to account still mean something to corporate leadership.  

For a more concrete take, let’s return to Bloomberg Intelligence. 

In an investor survey released after Trump took office, 90% of respondents said they assess the carbon footprint of their portfolio. Because it still matters. 

Investors want stable and sustainable portfolios. And that means looking to the future. Beyond the current turbulence and anti-ESG rhetoric. 

ESG Isn’t Going Anywhere

The smart, forward-thinking companies know this. They’re adjusting their approach and language for the time being. But the work and investment go on. 

If you’re at the start of your ESG journey, wondering if it’s worth following a framework and investing in regulatory compliance in such turbulent, uncertain times, the answer is, ‘Yes’. It’s worth it — reputationally, financially, and for the planet. And our guide to ESG can help.