24 September 2025 — Disruptive sustainability is now a strategic imperative for business. In this blog, Beth Knight, CISL Senior Associate, explores how shifting markets, climate risks, and rising scepticism towards ESG demand bold, collaborative leadership. She highlights systems-level innovation and spheres of influence as key levers for shaping resilient organisations that redefine the markets they operate in. 

In our rapidly evolving business landscape, sustainability leaders increasingly view disruption not as a threat, but as a defining opportunity for resilience and competitive edge (CISL, 2025; Lennon, 2025). Shifting market norms, geopolitical tensions, technological innovations, and accelerating climate impacts are widely recognised in current academic and business analysis as the crucible where future-fit organisations are forged. Those who adapt quickly and intentionally set the course for entire markets, shaping not just their own destiny but that of regenerative business systems (IMD, 2025; CISL, 2025).

Building on this, urgent trends are exposing new headwinds for sustainable business. Recent studies and annual reports highlight rising public scepticism towards Environmental, Social and Governance (ESG) frameworks and a marked increase in “greenhushing” - the deliberate understatement or withholding of sustainability achievements to avoid scrutiny (South Pole, 2024; Ecologi, 2025). In July 2025, a report in The Economist named several major companies who strategically shifted to quieter climate action and opted not to publicise their initiatives (The Economist, 2025). This trend worries responsible businesses and scholars alike, as it undermines transparency and collaborative peer leadership, both of which are crucial for sector progress. At the same time, business thought leaders argue we are in a “gradually then suddenly” phase: below-the-surface shifts in economics and climate risk are erupting as external change, prompting business to re-examine old norms. There is a notable uptick in coalition-building and policy engagement among purpose-led businesses, which is evidence of a wider desire to move together to reshape markets, rather than act alone (CISL, 2025).

As these pressures mount, the risks of inertia become stark. Academic reviews and industry commentary warn that cultures dominated by compliance and risk-aversion can stifle the innovation and system-level change needed for genuine progress (HFS Research, 2025). Consider, for example, the initial wave of CSRD reporting: greater transparency is welcome but insufficient alone, unless accompanied by meaningful innovation and investment in partnerships (Smithfield, 2024). When reporting receives more budget than product or partnership innovation, ambition is curbed and transformative change suppressed. Critically, research indicates that periods of uncertainty, sometimes described as a “sustainability recession”, can be prime opportunities to reinvent business norms and prepare for the next, inevitable wave of disruption (Elkington, 2025; Syväri et al., 2025).

Consequently, intentional and positive disruption is now framed as a strategic imperative. If leaders do not harness disruption on their own terms through foresight and systemic innovation, crises such as pandemics, climate disasters, and conflict will force change in less predictable and often damaging ways. Deploying every sphere of influence, from product design to policy advocacy, has become recognised as an essential toolkit for catalysing change. Leading practitioners and scholars illustrate that transformation flourishes when leaders build diverse coalitions, invest in cross-sector partnerships, and help trigger tipping points for new market norms (Axelsson et al., 2025; CISL, 2025; IMD, 2025).

"If leaders do not harness disruption on their own terms through foresight and systemic innovation, crises such as pandemics, climate disasters, and conflict will force change in less predictable and often damaging ways."

Systems-level collaboration is also essential for holistic business transformation. Recent business literature emphasises that to unlock new value and resilience, sustainability must be integrated with digital innovation and ecosystem partnerships (Syväri et al., 2025; Editorial, 2025). Inter-connected approaches, proven in large multinational case studies and thought leadership reports (such as Unilever, Kingfisher, IKEA, DSM, Interface), differentiate those organisations able to seize new opportunities and shape future markets (CISL, 2025; WEF, 2025).

Underlying all these themes is the growing importance of ‘spheres of influence’. Widely referenced in leading business and academic discourse, spheres of influence offer clear, actionable pathways to demonstrate impact. Not just through internal metrics, but through avoided emissions, scaled solutions, and advocacy for strong policy change (Axelsson et al., 2025; CISL, 2025; Futerra, 2024). When leaders approach sustainability with openness, vision, and an appetite for collective action, their organisations become catalysts for sector-wide progress.

"When leaders approach sustainability with openness, vision, and an appetite for collective action, their organisations become catalysts for sector-wide progress."

The choice for business is urgent and collective. Disrupt harmful norms with intention, collaborate to build resilient futures, and harness every lever of influence. Otherwise, forces beyond our control will redefine the market. To support this shift, leaders should report on material outcomes, scale up solutions that inspire, and engage boldly in policy arenas to signal progress.

"The choice for business is urgent and collective. Disrupt harmful norms with intention, collaborate to build resilient futures, and harness every lever of influence. Otherwise, forces beyond our control will redefine the market."

For further insights, see “Survival of the Fittest: From ESG to Competitive Sustainability” and join CISL's 8-week online course on Business Sustainability Management.

References

Axelsson, K., Becker, M., & Wigg, C. (2025) Corporate climate targets are a mess. Grist, 3 June.

Cambridge Institute for Sustainability Leadership (CISL) (2025) Survival of the Fittest: From ESG to Competitive Sustainability. CISL, Cambridge.

Ecologi (2025) Silent sustainability: why greenhushing is growing and how to stay credible. Ecologi Blog, 3 June.

Editorial (2025) Business Transformation: Global Perspectives on Innovation, Sustainability, and Digital Disruption. Dibon Journal of Business, 2 July.

Elkington, J. (2025) Sustainability at a Crossroads. Oxford Net Zero.

Futerra (2024) Spheres of Influence. 

IMD (2025) Leadership 2025 – 5 Key Behaviors. I by IMD, 10 June.

Lennon, T. (2025) Leadership 2025 – 5 Key Behaviors. I by IMD, 10 June.

Smithfield (2024) Adapting to Market Changes: Business Strategies for 2025. Smithfield Blog, 19 November.

South Pole (2024) Net Zero Report: Greenhushing and ESG Communication Trends.

Syväri, M., et al. (2025) Enacting ‘true business sustainability’ − Market shaping for environmental impact. Journal of Business Research, 171, pp. 34–50.

S-RM (2025) ESG in private equity: Are we losing ground in 2025? S-RM Inform, 2 February.

The Economist (2025) The remarkable rise of “greenhushing”. 29 July. 

World Economic Forum (2025) The Global Risks Report 2025. Geneva: WEF.