7 April 2025 - A new report from the University of Cambridge’s Institute for Sustainability Leadership sets out a pathway for the private sector to proactively respond to the current volatile geopolitical context while continuing sustainability efforts.
The Competing in the Age of Disruption report, co-written by CISL’s CEO Lindsay Hooper and CISL Fellow, Paul Gilding, with contributions from over 20 senior business leaders, demonstrates that innovation to drive market-wide change can create a level playing field for business action to address climate and nature risks.
Businesses face existential risk from two directions: systemic instability if we fail to transition to a sustainable economy, and competitive displacement if the transition accelerates faster than companies can respond to.
Meanwhile, there are big opportunities for companies that get on board with the transition. Entire sectors are being rebuilt and the market for sustainable solutions is projected to reach trillions in value, rewarding those who move early in clean technology, resource efficiency, and resilient, low-carbon business models. It is in business’s interests to accelerate the sustainable transition and prepare to compete on superior performance – as was argued by CISL’s report in September 2024, titled Survival of the Fittest: From ESG to Competitive Sustainability.
This follow-up report aims to answer the question of what happens to ESG now and how it responds to today’s political and economic instability. It argues that in moments of disruption, such as the new US administration, the rules of the game are rewritten, creating openings for those who act decisively.
This paper argues now is the moment to rebuild momentum and provides a gameplan. It outlines six key priorities to make this happen:
- A mindset shift for businesses: from complacency, compliance and incrementalism to value, competition and transformation.
- Escape the ESG trap: by ending tokenistic and reputation-driven approaches and redirecting effort towards concrete efforts for a market-wide transition.
- Prepare for transformation and competition: by building leadership alignment, developing strategic foresight tools and building the capabilities to influence politics and culture.
- Innovate to create and protect value: by working with innovators, collaborating in pre-competitive innovation, and triggering tipping points.
- Change the rules of the game: through strategic policy advocacy that dismantles barriers and builds fair, future-fit markets.
- Build momentum for change: by working to ‘move the middle and winning the public debate.
Read the report: Competing in the Age of Disruption
Quotes
Lindsay Hooper, CEO, Cambridge Institute for Sustainability Leadership: “From climate shocks to clean tech disruption, the forces reshaping global markets are already accelerating. The real danger for business isn’t moving too fast - it’s being overtaken. The companies that win will shape the market conditions they need to thrive and compete through speed, innovation and resilience, not through sitting back and hoping for the best. In this landscape, silence isn’t neutrality - it’s a strategic risk because it cedes the narrative to those profiting from delay, and leaves business unable to shape the very rules its future depends on.”
Paul Gilding, Environmentalist and CISL Fellow: “Politics is chaos. Market sentiment is fickle. The laws of nature are unchanging. There are two paths ahead: economic collapse or deliberate, innovative and disruptive economic change. The only choice for business leaders is whether to play to win.”
Alex Tamlyn, Partner & Chair Boardroom Counsel, DLA Piper UK LLP: “One of the biggest ESG challenges has been to drive virtuous behaviours by businesses. It isn’t surprising that arguments based on “virtue” alone haven’t worked. In Competing in the Age of Disruption, CISL cogently presents the “value” case, together with a call for proactivity in shaping the markets and regulation of sustainability. All against the powerful backdrop proposition that many of the underlying problems of ESG are persistent realities, not matters of opinion. This briefing is a blueprint for business seeking outperformance and the coveted financial "alpha". It shouldn’t be ignored".
Gonzalo Sáenz de Miera, Global Director of Climate Change and Alliances, Iberdrola: “It is in the interests of business to act now to accelerate transition. Not only will this help them to manage risk but also gain early-mover advantage - setting future standards and influencing policy direction and capital flows. By 2035 sustainable industries will likely be dominant forces in global markets”
Carola van Lamoen, Head of Sustainable Investing, Robeco: “As this CISL report makes crystal clear, the transition is inevitable and climate change is real; science has not changed, despite changing geopolitical dynamics. Investors and businesses can play an important role, not only in managing risks, but also in accelerating the transition. This is now more important then ever. “
Dr Marc Kahn, Chief Strategy and Sustainability Officer, Investec Plc: “I have always believed that true sustainability is viable only when it drives competitive advantage and that we desperately need to move beyond compliance-driven ESG efforts to embed sustainability into our core strategies. The approach outlined in this report brilliantly demonstrates how we can achieve this in a way that enhances profitability, resilience, and market leadership. It will resonate with leaders who understand that the future belongs to those that effectively compete by addressing the world’s most pressing challenges. A must read!”
Fleming Voetmann, Vice President External Relations and Sustainability, VELUX, and Vice Chair, CLG Europe: “The green transition is key for Europe’s competitiveness and resilience. Getting the narrative right is absolutely critical, particularly in the times we’re in right now, tackling numerous crises at the same time. We must stay the course, strengthening the enabling framework for businesses and taking a more citizen-centric approach. To ensure social acceptance, we must better communicate the benefits for people, for example through buildings which is where people directly feel the green transition. This is a key area where we have engaged on policy and are supporting the European Commission’s new focus on housing."
Eva Zabey, CEO, Business for Nature: “We’re seeing a growing wave of businesses addressing nature restoration and regeneration. Not just because it's the right thing to do but because it's in their interests to strengthen their operational and supply chain resilience and drive this vital shift, influencing policy and capital flows. The next generation of corporates will likely emerge from clean technology and circular business models — not from extraction, waste and emissions. While the demand for sustainable and resource-efficient solutions is growing, our economies still prioritize short-term returns over long-term value creation. Therefore private sector participation and action is essential to create fair competition and markets that value sustainability and accelerate the inevitable transition."
Mike Barry, CISL Fellow and ex- Head of Sustainable Business at Marks & Spencer: “‘Big ESG’ has offered the chimera of progress, become a comfort blanket to cling to for unloved sustainability professionals and spawned a lucrative network of alliances, think tanks, research, standards setting and consultants who can make a comfortable living off of it. We cannot call on companies to transform radically without calling on the ESG ‘service sector’ to disrupt itself as profoundly.”
Munish Datta, Director of Sustainability, Specsavers Group, Senior Advisor, BNP Paribas REIM, and CISL Fellow: “Industrial transformation is underway—inevitable, apolitical, and driven by the unyielding forces of climate, innovation, and economics. This report outlines a clear pathway for leaders to harness sustainability as a competitive lever, delivering lasting value for stakeholders and shareholders.”
Zoe Arden, CISL Fellow: "This dynamic and inspirational report is written with a palpable sense of urgency and commitment. It's depth and breadth of both expertise and ambition are inspiring. It should be prescribed reading for everyone in business (and beyond) who wants to not just survive but thrive in the future on a liveable planet."