KPMG's Top sustainability themes for 2026 report emphasizes the simple yet revealing idea that compliance is no longer enough and urges companies to take action to turn their commitments into tangible results. The challenge now is to turn commitments into measurable results that deliver real benefits. Companies that achieve this will be better positioned to attract capital, stand out in the market, and build long-lasting trust with their stakeholders, while also strengthening their ability to attract, retain, and develop the talent needed to carry out these initiatives.
For years, environmental, social, and governance (ESG) criteria were treated as just another section of an annual report. That approach, however, has now evolved considerably. Today, sustainability is evaluated alongside financial and operational indicators, as it directly impacts costs, efficiency, risks, and business opportunities. Microsoft CEO Satya Nadella puts it plainly, placing sustainability “at the heart of the company’s strategy and technological innovation.” It’s not an add-on—it’s an integral part of the core business.
One of the most noticeable changes has been in the way companies report. The implementation of the Corporate Sustainability Reporting Directive (CSRD) has raised the bar, but it has also helped streamline the process by guiding management and auditing results. Reporting is not merely about collecting data but builds upon the work previously undertaken by the GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board) as reference frameworks and international standards for preparing sustainability reports. In short, they allow us to compare data and better understand what works and what doesn’t so we can make better use of the information.
Sustainability is no longer a peripheral concern. It has become an integral part of business strategy because it increases efficiency, opens up new opportunities, and builds trust.
Trends that will define sustainability in 2026:
Sustainability is evolving rapidly, and in 2026, companies will need to anticipate strategic, regulatory, and technological shifts to stay competitive.
Reporting finds its footing
European regulations concerning sustainability information (CSRD) have been simplified, and requirements have been streamlined. The focus now is on gathering reliable, actionable data for management purposes, rather than simply ticking boxes.
Adaptability: geopolitics reshapes the agenda
In a global climate of escalating tensions, the ecological transition is becoming more complex and uneven. For companies, this means adapting to national and European priorities that seek to balance economic competitiveness with climate action, all within a framework of international cooperation.
Supply chain transparency
Sustainability no longer depends solely on what happens within a company. Regulations covering the entire supply chain are becoming increasingly stringent, requiring companies to ask their suppliers for information about their environmental impact.
Climate adaptation reaches the boardroom
The frequency of severe weather events is on the rise, and companies must be proactive and assess whether their business models could be affected. In this regard, the ability to anticipate these situations and strategic resilience take on particular importance.
Carbon at the border: CBAM for border control in Ireland
Starting in 2026, the CBAM (Carbon Border Adjustment Mechanism) will transition from being solely a reporting requirement to a border control measure for Irish companies, introducing financial requirements and the enforcement of customs laws.
Companies that import more than 50 tons of steel, aluminum, cement, and fertilizers annually must demonstrate their status as authorized declarant. In summary, the CBAM converts emissions into import costs by requiring stakeholders to submit the relevant CBAM certificates.
The artificial intelligence paradox: both a solution and a problem
Technology, led by AI, is emerging as a key driver of transparency in sustainability. It not only enables more robust analyses of ESG data but also produces far more accurate reports. Its relevance is reflected in global corporate strategy: 71% of CEOs already rank AI as their top investment priority for this year, backing that vision with unprecedented budget allocations.
AI’s analytical capability finds a particularly important application in an area the KPMG report singles out: natural resource management.
This is not purely an environmental issue. When a company learns to manage water or raw materials more efficiently, the effects are felt across multiple fronts: costs come down, the risk of shortages is reduced, and relationships with the communities where the company operates improve.
