Corporate Priorities Shift: Geopolitics and Inflation Top ESG
A recent survey reveals a significant shift in corporate priorities for the next year, with geopolitical conflict and high inflation taking centre stage. Meanwhile, ESG strategies, once a top concern for businesses, have seen a notable decline in importance.
Between Q1 and Q2 2025, the proportion of respondents reporting their company had an ESG strategy dropped from 46% to 39%. This change coincides with a growing uncertainty among industry professionals, with those unsure about their company's ESG strategy increasing from 19% to 30%.
Reflecting this trend, ESG is now ranked bottom in terms of expected impact on businesses in the next 12 months, with only 7% of respondents citing it. In contrast, geopolitical conflict has emerged as the top theme, with 40% of respondents expecting it to affect their business. High inflation follows closely, with 33% anticipating its impact. Digitalisation, once a prominent concern, now ranks third with 10% of respondents.
The changing landscape of corporate concerns suggests a pivot towards more immediate and tangible threats. However, the decline in ESG focus raises questions about long-term sustainability and responsible business practices. As geopolitical tensions and economic instability continue to evolve, businesses must balance short-term challenges with their commitment to environmental, social, and governance principles.
