What's Happening?
A recent global survey highlights a decline in confidence towards green finance and ESG investing, with support dropping from 81% to 67% between 2024 and 2025. Despite this, digital innovation has emerged
as a leading driver for environmental and sustainability (E&S) consulting businesses, now ranking as the top global driver. The survey, which gathered insights from several hundred E&S consultants worldwide, indicates a shift in focus from traditional sustainability drivers like net zero and nature-based solutions to digital technology. This change is attributed to the rising use of AI, data platforms, and digital twins, which are increasingly integrated into E&S work. The survey also notes that inflation and economic outlook remain significant constraints for the industry.
Why It's Important?
The shift in focus from green finance to digital innovation reflects broader trends in the global economy, where technological advancements are increasingly seen as key to achieving sustainability goals. This change could impact how businesses prioritize investments and strategies, potentially leading to increased funding for digital solutions over traditional green finance initiatives. The decline in confidence towards green finance may also affect policy-making and corporate strategies, as stakeholders reassess the viability and impact of ESG investments. Additionally, the emphasis on digital innovation could drive further advancements in technology, fostering new business models and services within the E&S sector.
What's Next?
As digital innovation continues to gain traction, E&S consulting firms may need to adapt by enhancing their technological capabilities and offerings. This could involve increased investment in AI and data analytics to meet the growing demand for digital solutions. Meanwhile, stakeholders in the green finance sector may need to address the declining confidence by demonstrating the tangible benefits and impacts of ESG investments. Policymakers could also play a role by creating supportive regulatory frameworks that encourage both digital innovation and sustainable finance. The ongoing economic challenges, such as inflation, will likely continue to influence strategic decisions within the industry.
