ESG is noisy right now. Not because it is going away, but because it is growing up. The expectations are sharpening. The commercial stakes are rising. And the work is moving from sustainability teams into finance, risk, procurement, operations and the boardroom.
Here we unpack the five priorities shaping ESG in 2026, and the moves organisations can make now to stay ahead.
Economic Essentials
The economic case has shifted. The question leaders are asking is no longer what is the cost of transition. It is what is the cost of delay.
Deloitte Access Economics modelling shows that transitioning to net zero by 2050 adds $435 billion to Australia’s GDP^1. The same modelling cites a $370 billion GDP boost under a 75% emissions reduction target by 2035, with Australia $500 billion better off by 2050.
Then there is the capital signal. Responsible investment and sustainable finance are scaling quickly. Current estimates are that the sustainable finance market was about USD 754 billion in 2024 and could reach about USD 2.59 trillion by 2030*2, with around 23% annual growth through 2030.
What it means is simple. Capital is increasingly pricing performance, not promises.
What to do now
- Build the business case in the language of finance, resilience and risk
- Prioritise decision grade data on the metrics your lenders and investors will scrutinise first
- Make your transition plan investable with clear targets, governance and proof points
Regulation Rising
Mandatory reporting is not just more work. It is a reset of accountability.
Sustainability reporting is already mainstream for the world’s largest companies, with 96% of the G250 reporting, and more than 300 new global regulations introduced since 2019. The direction of travel is clear, even as some jurisdictions adjust timelines and scope.
In Australia, mandatory climate reporting under the Corporations Act commenced from 1 January 2025 for the largest organisations, with a phased rollout beginning with $500 million plus entities as the first cohort.
The hardest part is not finding the data. It is building governance and capability so disclosures are credible, consistent and ready for assurance.
What to do now
- Treat mandatory reporting as a governance uplift, not a sustainability project
- Clarify ownership across finance, risk, legal, sustainability and the board
- Build capability early so reporting becomes repeatable and defensible
Systemic Synthesis
Fragmented ESG activity will not survive 2026. Systems will.
Only 6% of businesses have full traceability in their supply chains. That means most organisations still do not have clear visibility into what is happening at the start of their value chain.
At the same time, procurement is tightening. 81% of global trade professionals now use ESG criteria as a primary filter when selecting suppliers. ESG data is becoming a gatekeeper for revenue.
This is why the concept of systemic synthesis matters. Instead of collecting ESG data in fragments for different demands, organisations need to stitch it into a single intelligence system that can serve multiple needs across reporting, due diligence, procurement, customer transparency and innovation.
Digital Product Passports are one clear example of where this is heading. They have been scheduled to become mandatory in the EU for batteries and textiles from 2027, moving provenance from static documentation to machine readable cradle to grave transparency. They also open circular opportunities like resale authentication, repair enablement and even royalties on second hand transactions.
What to do now
- Stop asking suppliers for the same data three different ways
- Build a multi year roadmap to move from estimates to verified activity data across tiers
- Invest in data infrastructure that can serve compliance, procurement and customer trust at once
Value Velocity
This is where ESG flips from defence to growth.
2026 is a tipping point where ESG must move from cost of compliance to a rapid driver of value. Market leaders are using sustainability as a performance engine, strengthening enterprise value, winning procurement, and building trust that translates into commercial momentum.
Governance maturity is part of the valuation signal now. Recent evidence proves that two thirds of dealmakers pay premiums~3 for strong ESG governance, with valuation uplifts of up to 10% when governance resilience can be proven.
This is why we challenge teams to do more than report. We want ESG to be embedded and bankable, and we want it to show up in how the business is run.
What to do now
- Build governance evidence that makes ESG investable and acquirable
- Turn ESG data into decision ready insight and stakeholder ready narrative
- Sell a future stakeholders want to join, not just a past you have reported on
Transformative Tech
AI can be a strategic enabler for ESG. It can process large datasets, support real time monitoring, and make Scope 3 work more manageable. It can also free teams from retrospective reporting so they can spend more time on strategy and transformation.
But AI only helps if governance leads.
Setting up the guardrails that matter most: accuracy, data ethics and ownership, bias, auditability, and the energy-consumption realities of advanced technology in the context of decarbonisation goals.
The opportunity is real. The risk is also real. The organisations that lead will treat AI as part of ESG governance, not separate from it.
What to do now
- Use AI to accelerate workflows and unlock capacity for higher value strategic work
- Set clear governance for inputs, outputs and data lineage before scaling use cases
- Treat AI risk and AI energy impact as part of the ESG conversation
Capability is the multiplier
ESG training is still fragmented, especially for people outside finance. If you want ESG to stick, build capability across finance, procurement, operations, marketing and sales, not only within the sustainability team.
If 2026 is the year ESG becomes normal business, the work is not doing more. It is doing it smarter, with stronger governance, better systems, and clearer value.
Contact us to find out what this might look like for your organisation.
- https://www.climatecouncil.org.au/resources/deloitte-confirms-strong-climate-targets-stronger-australian-economy/ ↩︎
- https://www.grandviewresearch.com/industry-analysis/sustainable-finance-market-report ↩︎
- https://www.esgtoday.com/majority-of-ma-dealmakers-would-pay-premium-for-high-esg-maturity-companies-kpmg-survey/
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