Profit Despite Politics: How Sustainability Continues to Benefit Businesses in 2025 

As regulatory ESG faces growing criticism in some regions, many companies are still seeing real returns from their sustainability programs. 

This comes at an interesting time. Europe and Asia are pushing ahead with sustainability commitments while the US is experiencing some political pushback. Yet many businesses continue to invest in sustainability because it makes good business sense. 

We spoke with leaders from various industries to find out exactly what benefits they’ve gained from their sustainability programs. From cost savings and new customers to better talent and innovation opportunities, their experiences show why sustainability should remain a priority despite the changing political climate. 

Financial Performance: Real Money Saved and Earned

Many companies report that sustainability initiatives have improved their bottom line through lower costs, more efficient operations, and new revenue streams. 

Cutting Costs Through Resource Efficiency 

Saving resources often means saving money. Companies that use less energy, produce less waste, and conserve water see immediate financial benefits alongside environmental ones. 

At Heubach, a global pigment manufacturer, renewable energy investments have paid off in multiple ways. Dr. Thomas Lindner, Vice President of Sustainability, explains: “Our investment in renewable energy plants in India, including both solar and solar-wind hybrid facilities, has not only delivered a strong business case but also achieved significant reduction in CO2 emissions (Scope 2).” Heubach has found that doing good for the environment can also be good for the books. 

Charging More for Sustainable Products

Customers are often willing to pay more for products with proven sustainability credentials. This premium pricing can increase profit margins considerably. 

One company we spoke with said that “sustainable products have grown from less than 10% to over 30% of our revenue share, and these products have higher margins.” Their sustainable offerings aren’t just good for the planet—they’re good for profits too. 

Returns on Green Energy

The return on investment for renewable energy can be surprisingly good. At one organization we spoke with, 37 photovoltaic installations at industrial sites delivered an average Internal Rate of Return above 21% over 10 years and 24% over 25 years. Most paid for themselves in just over 4 years. 

One installation covered up to 30% of a site’s energy needs, with energy cost savings of 30-50% over 25 years. If fully implemented across all sites, this would save about €93 million (€3.7 million per year) while reducing CO2 emissions by over 200,000 tons over 25 years. 

These numbers show that sustainability investments can deliver solid financial returns while reducing environmental impact. 

Winning More Business

Sustainability credentials have become a must-have for many companies, especially when working with larger clients who have their own sustainability goals to meet. 

Meeting Customer Requirements

“Customer requirements regarding sustainability have increased dramatically, especially among major accounts like IKEA, Bosch, Schaeffler, Volvo, and others,” one company told us. “Requirements range from certified greenhouse gas reduction plans to meeting various ISO standards to certificates like Ecovadis and FSC, plus meeting legal requirements.” 

Companies that can’t meet these standards are increasingly shut out of bidding processes. Several of the business leaders we spoke with reported winning major accounts specifically because they met all the sustainability standards their customers required. 

Canyon Bicycles saw clear market benefits from their packaging improvements. By creating their “Bike Guard” system using mostly FSC-certified materials, they’ve connected with eco-conscious customers in the cycling market. In 2023, they sourced 98% of cardboard for Bike Guards from certified forests, up from 96% in 2022. This work has improved their standing with customers who care about responsible packaging. 

Heubach gained an edge by being the first in their industry to calculate Product Carbon Footprints. Dr. Lindner notes: “Calculating the Product Carbon Footprint (PCF) of 13 lighthouse products (Azo Pigments) enabled Heubach to participate actively in the decarbonization strategies of its customers.” This helps Heubach’s customers meet their own goals while improving business relationships. 

Attracting Investment

Despite recent shifts in ESG investing sentiment, companies with strong sustainability practices still find it easier to attract capital. 

KPMG’s Global ESG Due Diligence Study 2024 found that “55% of survey respondents are willing to pay a premium of between 1-10% for assets with high ESG maturity.” Investors see these companies as better prepared for future risks and opportunities. 

One company we spoke with specifically mentioned gaining an “advantage in the competition for capital” through their sustainability performance. This shows how sustainability can influence not just customer decisions but investor decisions too. 

Managing Risks Better

Taking a proactive approach to sustainability helps companies spot and address potential problems before they become expensive crises. 

Staying Ahead of Regulations

With sustainability regulations constantly changing, especially in Europe with directives like the Corporate Sustainability Reporting Directive (CSRD), companies that embrace sustainability early find themselves better prepared. 

Dr. Lindner offers a fresh take on these regulations: “CSRD is often described as a bureaucratic monster. However, when companies have a clear sustainability strategy and take charge of shaping this strategy themselves, the CSRD transforms into a well-structured framework for reporting the positive actions they’re already taking for our world and future. The perceived monster vanishes, and instead, companies find themselves on a fast track to success.” 

This forward-thinking approach turns what many see as a burden into an opportunity, allowing companies to shape their sustainability approach on their own terms rather than scrambling to react when new rules take effect. 

Reducing Climate Risks

More companies now recognize that climate change poses real risks to their operations, supply chains, and markets. Sustainability initiatives help reduce these risks. 

Heubach took a focused approach by applying what Dr. Lindner calls the “TOP3 unit operations approach.” This method “identified the three main emitting production units as the foundation for Heubach’s decarbonization strategy, which helped secure executive committee approval for our climate goals in line with the Science Based Targets initiative.” By targeting their biggest emissions sources first, they made progress quickly. 

Canyon Bicycles shows how addressing environmental risks through packaging changes can yield measurable financial benefits. Their work to improve packaging and use recycled materials not only reduced their climate risk exposure but also saved €297,900 while cutting CO2 emissions by 65,000 kg. By taking early action on environmental concerns, they avoided potential future regulatory complications while securing immediate cost benefits. 

The Radeberger Group came up with an easy to realize approach too: “With our new e-forklift fleet, we save around two million liters of diesel/fuel gas per year—in total, this results in 7,000 tonnes less CO2 per year.” This not only reduces their environmental footprint but also protects them from rising fuel prices and potential carbon taxes. 

Attracting and Keeping Talent

In 2025’s tight job market, sustainability has become an important factor in attracting and keeping good employees, especially younger workers who want their jobs to have purpose. 

Becoming a More Attractive Employer

Companies with clear sustainability commitments often find it easier to attract top talent. As one business told us: “Our company was a relatively unattractive employer; our challenge was to attract talent. We even considered relocating our headquarters to an attractive metropolis after more than 250 years. This was no longer necessary after our sustainability initiatives; on the contrary, talent has proactively applied to us to take part in the transformation.” 

What made the difference? The company cited “Purpose but equally the opportunity to personally contribute and significantly influence the outcome. Plus, radical transparency about where we stand in the transformation.” 

This experience shows how sustainability programs can improve a company’s reputation with job seekers without requiring costly location changes or other interventions. 

Keeping Employees Engaged and Loyal

Sustainability initiatives also help keep current employees engaged and loyal. The Radeberger Group boasts impressive retention numbers: “Nearly 2,000 of our colleagues have been with our corporate group for more than 10 years, often even more than 20 or 30, yes, even 40 years.” 

This loyalty stems partly from the company’s clear commitment to sustainability and investment in employee development. They note that “The number of users of our internal digital learning platform, which offers voluntary further training to promote methodological, personal social skills, has quadrupled in the years 2020 to 2023.” 

Driving Innovation

Sustainability challenges often spark new ideas for products, services, and processes that can open new markets and improve efficiency. 

Developing New Products

Companies that embrace sustainability find it often leads to product innovation. Heubach’s development of Product Carbon Footprint calculations for their pigments shows how sustainability considerations can drive industry-leading advances. 

Dr. Lindner sees huge potential in this area: “Sustainability is like a diamond in the hands of our sales teams. When we equip our sales representatives with knowledge about sustainability practices and the regulatory landscape, it gives them an edge in selling products. This knowledge transfer will be important for future sales success.” 

Improving Processes

Looking at operations through a sustainability lens often reveals ways to improve processes that benefit both the environment and the bottom line. 

One company we spoke with established a “Refurbishment Center for rented products” with a modest investment of €60,000 that generated €1 million in annual EBITA and another €1 million in cash effects. The number of devices refurbished per employee per month exceeded their original plans. This initiative reduced waste by extending product lifecycles while creating a new revenue stream—a win-win for sustainability and profitability. 

On the other hand, Canyon Bicycles found new solutions by rethinking their packaging approach. Their team looked at every detail of their packaging system and found clever ways to cut material use while keeping bikes safe during shipping. For e-mountain bikes, they reduced cardboard weight by 350g per box. They also switched from virgin polystyrene to 100% recycled polypropylene for box components. These changes required fresh thinking and resulted in both environmental gains and cost savings. 

Sustainability in a Divided 2025: Why the Business Case Still Matters 

In 2025, the world looks different for sustainability initiatives. While the US political climate has turned against ESG and sustainability, other major markets like Europe and Asia continue to push ahead with sustainability frameworks. 

Research from Stanford Graduate School of Business shows fewer young investors willing to sacrifice returns for environmental improvements—only 10% would give up more than 10% of retirement savings compared to 33% in 2022. Money concerns now play a bigger role in these decisions. 

Yet The Corporate Governance Institute projects global ESG assets will reach between $35 and $50 trillion by 2030. Why? Because “Investors are likely convinced that ESG-related investments are smart, long-term bets.” 

The current ESG backlash has several causes. Bloomberg reports the concept became a political target in the US, with Republican politicians attacking what they call “woke capitalism.” With partial funding from fossil-fuel interests, they’ve launched investigations, passed anti-ESG laws, and blocked certain firms from state business. 

The ESG label itself became part of the problem. The once-useful framework spread too thin, slapped on everything from small funds to complex financial products. When gaps appeared or companies exaggerated their green credentials, critics pounced. 

Recent performance hasn’t helped either. Some ESG funds struggled during inflation, high interest rates, and supply chain problems. In 2024, the S&P 500 grew 23% while the iShares Global Clean Energy ETF fell about 27%, giving critics more reasons to attack. 

Despite these challenges, the business case for sustainability remains solid. Political winds change, but benefits like cost savings, premium pricing, and talent advantages last. Customers and staff still prefer companies with genuine sustainability programs. 

About the Author

Christian Ehl is a Partner at Stanton Chase Düsseldorf and the Global Functional Leader of Stanton Chase’s Sustainability and ESG Specialization.  He has 20 years of experience in executive search, leadership advisory, sustainability, and ESG. He is the author of several sustainability related whitepapers and articles and supports his clients in transitioning to more sustainable business models with the right people in place.