By: Simon Weaver, Global Head of ESG Advisory, KPMG International
The narrative around ESG has often been framed as a moral obligation or a regulatory burden, but the KPMG 2025 CEO Outlook findings, released this week, unequivocally demonstrate a profound shift. Business leaders now clearly understand that ESG is not just “good for the planet” but fundamentally “good for business.” This isn’t about altruism. It’s about astute strategic foresight in a world where climate change, nature and biodiversity decline and broader societal challenges directly impact financial performance, organizational resilience and ultimately the enterprise value of the company.
Our recent survey of over 1,300 CEOs globally reveals a pragmatic recognition that environmental and social factors are inextricably linked to financial performance. While the global economic outlook presents its share of uncertainties, CEOs are not allowing these short-term pressures to derail their commitment to sustainability. Instead, they are integrating ESG considerations into their core growth strategies, viewing them as essential for navigating market volatility and securing future value.
A particularly telling insight from the KPMG 2025 CEO Outlook is the growing confidence in achieving net-zero targets. 61% of CEOs now believe they can meet their 2030 targets, which keeps them on track for their net zero ambitions, a notable increase from 51 percent in 2024. In Spain, a striking 82 percent of leaders are confident of meeting their goals, while CEOs in Australia are least confident among the nations and regions we interviewed, with just under half of those questioned believing they can reach net-zero. The findings reflect a deeper understanding of the operational efficiencies, innovation opportunities, and risk mitigation benefits that come with decarbonization. Leaders are recognizing that moving beyond aspiration and actually investing in sustainable practices can lead to reduced operating costs, enhanced brand reputation, and improved access to capital.
KPMG International’s survey also highlights how sustainability is interwoven with other strategic priorities. 69 percent of CEOs told us they technology like AI has the potential to support their company’s climate and sustainability objectives, while more than three quarters agree that AI creates the opportunity to support broader responsible innovation aligned with climate goals.
The 2025 KPMG CEO Outlook confirms that the most forward-thinking business leaders are moving beyond a superficial engagement with ESG and sustainability. They recognize that a changing climate, resource scarcity, and evolving societal expectations are not external threats, but fundamental forces reshaping markets and competitive landscapes. By proactively addressing these challenges through robust ESG strategies, CEOs are not just safeguarding their businesses. They are actively building more resilient, profitable, and sustainable enterprises for the future. While our findings offer some real cause for optimism, the reality is that there is much more to do to create the financial business case for sustainable action. We need greater commitment, collaboration and action. At KPMG, we’re working with organizations like WBCSD to convene across our sector and beyond and to play our part in solving this challenge. This is the era of pragmatic sustainability, where working together can reinforce the fact that long-term value creation is intrinsically linked to responsible business practices.
Simon Weaver, Global Head of ESG Advisory, KPMG International
