More than six in 10 chief sustainability officers expect global progress on sustainability to either remain steady or accelerate over the next 12 months, despite geopolitical and economic uncertainty, according to the World Economic Forum’s inaugural Chief Sustainability Officers Outlook.
The report, based on a survey of 103 sustainability leaders across five continents conducted between 10 February and 18 March 2026, found that 63 per cent of respondents expect sustainability progress to hold steady or accelerate.
The outlook is being supported by commercial and technological momentum, with companies increasingly linking sustainability investments to business growth, resilience and security.
Three in four CSOs expect companies’ transition-related investment to either remain stable or increase. Among the key drivers, 64 per cent cited a clear economic rationale, while 56 per cent pointed to increasingly applicable technologies.
The global green economy is now worth more than US$5 trillion annually and is projected to exceed US$7 trillion by 2030, according to the report.
Geopolitical uncertainty creates ‘green divergence’
Despite the positive outlook, sustainability leaders continue to face significant external headwinds.
Some 78 per cent of CSOs expect geopolitical and macroeconomic challenges, including conflict, inconsistent policy and weakening multilateral cooperation, to weigh on sustainability progress over the next year.
The WEF describes the resulting pattern as a “green divergence”, with some sectors and markets advancing because of strong economic incentives, while others slow amid policy uncertainty.
“Chief sustainability officers are telling us the transition is no longer a question of ambition, it's a question of execution,” said Sebastian Buckup, Managing Director at the World Economic Forum.
“As companies deliberately anchor sustainability strategies in growth, security and resilience needs, execution speed and priorities increasingly diverge across regions and sectors,” he added.
AI seen as sustainability accelerator
Artificial intelligence is emerging as another factor shaping corporate sustainability strategies.
Around 73 per cent of CSOs expect AI to meaningfully accelerate sustainability progress over the next year, particularly through applications in measurement, reporting, operational efficiency and risk modelling.
However, the sustainability benefits of AI are accompanied by concerns about the resources required to operate the technology.
Some 77 per cent of respondents identified the energy and resource intensity of AI infrastructure as its most significant negative sustainability impact. Data centres currently account for roughly 1.5 per cent of global electricity demand.
The findings highlight a growing tension for businesses seeking to use AI to improve sustainability while also managing the environmental footprint of expanding AI infrastructure.
Climate adaptation moves up the agenda
Climate adaptation is also expected to become a larger priority for businesses and governments.
Some 85 per cent of CSOs expect adaptation to become a bigger global priority over the next three years, while 77 per cent believe private-sector investment will be decisive in scaling adaptation efforts.
However, investment decisions remain challenging, with 62 per cent identifying uncertain cost-benefit assessments as the main barrier to greater investment.
The report also highlights the financial case for managing climate and supply-chain risks. Businesses actively managing supply-chain risks have generated US$13.6 billion in savings so far, with another US$165 billion in potential financial benefits identified.
The financial consequences of climate risks are also becoming increasingly visible. Insurers had paid US$22.4 billion in claims related to the 2025 Los Angeles wildfires by early 2026, according to the report.
New analysis cited by the WEF suggests that rebuilding affected communities to wildfire-resilience standards could reduce projected future losses by around one-third.
The findings will form part of discussions at the Sustainable Development Impact Meetings 2026 in New York from 21 to 24 September, where business, government and civil society leaders are expected to focus on scaling long-term sustainability solutions ahead of the World Economic Forum Annual Meeting 2027.