In recent years, it’s been pretty standard for the road to COP to be met with numerous challenges, both political and logistical, but this year’s journey seems particularly fraught.
The impact of cooling enthusiasm (and sometimes hostility) towards ESG and sustainability efforts are seen all around. The latest casualty this week was the closure of the Net Zero Banking Alliance; since banks started retreating from their net zero commitments and leaving the organisation, the raison d'être ceased for the 150-member group.
However, there is an undercurrent of resilience and ongoing momentum amidst the more pessimistic headlines. A recent PwC survey of nearly 500 executives across 40 countries found that pressure on companies to provide sustainability reporting and data is continuing to increase, despite some regulators pulling back on mandatory disclosure requirements. Over half of the companies surveyed reported growing demands from both internal and external stakeholders — including investors and customers — for more robust sustainability disclosures. Notably, while some firms plan to delay reporting in line with new EU expectations, an equal number intend to proceed on their original timeline. The survey also revealed that most companies see value in sustainability reporting beyond compliance, with many gaining significant insights from the data collected.
Meanwhile, the global shift to renewables is stronger than ever. The International Energy Agency revealed this week that renewables are now the fastest-growing source of electricity, accounting for nearly 30% of global power generation. This surge is driven by falling technology costs, supportive government policies and increasing corporate investment. Despite ongoing challenges such as grid integration and supply chain constraints, the momentum behind renewables demonstrates that the global energy transition is not only continuing but accelerating, even as political and economic headwinds persist.
It is also worth remembering that while the mood in the US and some European countries is particularly negative, the same can’t be said for the rest of the globe where ambitions remain strong. For example, this week, private and public sector representatives from Spain and Mexico gathered at the Hispamex Forum and called for climate-focused business models to reduce environmental impacts and boost competitiveness. With more than EU€70 billion (US$81.6 billion) of Spanish investment in Mexico and EU€33 billion (US$38.5 billion) of Mexican investment in Spain, the forum aims to foster strategic cooperation on joint sustainable business initiatives.
We can also be buoyed by potentially transformative scientific developments. This week, the 2025 Nobel Prize in Chemistry was awarded to Susumu Kitagawa, Richard Robson, and Omar M. Yaghi for their pioneering work in the development of metal–organic frameworks (MOFs). These sponge-like structures could mop up some of our biggest environmental messes - capturing and storing carbon dioxide, forever chemicals (PFAS) and even micro-plastic.
The endurance of sustainability initiatives and policies, even in the face of growing climate scepticism, is a testament to their deep integration into business and policy frameworks. While the landscape is evolving, the underlying drivers of sustainability remain strong. The challenge for COP negotiators is to maintain ambition and ensure they don’t let previous achievements slide further.