5 Sustainability Trends for 2026

Before signing off for the holidays, I’ve been reflecting on 2025 and what’s likely to define 2026.

After a year marked by geopolitical uncertainty, economic pressure, and shifting ESG narratives, many organizations focused inward —strengthening capabilities and building foundations. But the climate emergency isn’t waiting, and investors are demanding transparency. From severe flooding around the world (including here in B.C.) to global pension funds reassessing mandates based on climate risk management, the signal is clear: 2026 will reward early movers that demonstrate progress.

Here are 5 trends I see shaping the year ahead:

1️⃣ Regulation starts to bite
Sustainability disclosure standards move from aspiration to enforcement. CSRD continues to affect companies operating globally and their supply chains, ISSB standards become mandatory in multiple markets, and climate transition plans are increasingly expected as part of credible disclosure. In Canada, leading organizations are already aligning with emerging CSDS in anticipation of future regulatory direction. Clear rules create a level playing field—and early alignment opens doors to capital and partnerships.

2️⃣ AI becomes a sustainability accelerator
2025 was about experimentation. 2026 will be about application. AI will increasingly support ESG data analysis, climate risk modelling, supply-chain transparency, and sustainable finance — but judgment, governance, and leadership will remain critical. AI + people will outperform AI alone.

3️⃣ The ESG reset continues
Amid backlash and fatigue, organizations will refresh how they talk about sustainability: less ideology, more business logic. Expect clearer links to risk management, resilience, innovation, and long-term value creation, supported by credible data and disciplined communication.

4️⃣ Supply chains become the pressure point
For mid-market firms, sustainability is becoming a gatekeeper to growth. Organizations without credible disclosures or emissions data are already being excluded from supply chains. As large companies face tighter climate requirements and improve supply-chain transparency, well-prepared SMEs will stand out — turning sustainability from a reporting exercise into a competitive differentiator.

5️⃣ Green growth and transition finance accelerates
The low-carbon economy is no longer a future opportunity; it is an expanding market. Capital is flowing toward clean technology, renewable energy, electrification, and decarbonization solutions, with banks and investors sharpening their focus on transition-aligned opportunities. New Canadian sustainable investment guidelines will help unlock private capital at scale.