What’s Driving Sustainability Progress? Five Key Findings

What's Driving Sustainability Progress? Five Key Findings

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Sustainability innovation has reached a tipping point in the industrial sector. It is no longer a siloed initiative - it's now an essential part of business strategy for companies navigating new expectations from regulators, investors and customers.

But even as investment rises, many executives report challenges turning momentum into measurable outcomes. UL Solutions' latest benchmarking report - grounded in a global survey of 1,000 executives across sustainability, operations, finance and investor relations - reveals both the opportunities and obstacles that define today's sustainability landscape.

Here are five key takeaways from the report:

1. Structure is the missing link
   Sustainability investment is growing, but impact isn't keeping pace. Many executives report fragmented ownership, limited performance tracking and disconnected projects, despite growing pressure to deliver measurable results.
   
   The takeaway is clear: Scattered initiatives won't work. Organizations that approach sustainability like a capital investment portfolio, governed, performance-tracked and aligned with business priorities, are more likely to see progress. Others risk falling behind, even if they spend more.
   

2. Strategy must align with business outcomes
   Sustainability innovation can't succeed if it's not embedded in core business strategy.

   Data indicates that companies with full integration, where sustainability is viewed as a growth driver, are more likely to report positive business results such as increased revenue. But one in three executives still views it as tactical, rather than strategic. 
   

3. Visibility challenges are slowing progress
   More than 80% of executives said that the lack of visibility into sustainability goals and performance across the organization has a high or very high impact on their ability to manage an enterprise-wide portfolio of initiatives.
   
   When teams can't see how initiatives connect, or how they are performing, it becomes a challenge to align efforts, track progress or make data-driven decisions. Leaders can't optimize what they can't measure. And without shared metrics, centralized reporting or tracking, sustainability efforts risk becoming siloed, inconsistent or redundant.
   
4. Siloed efforts limit scalability
   The takeaway is that leading companies are breaking down silos between environmental, social and governance (ESG), operations, finance and customer-facing teams. By aligning goals and assigning accountability, they're building sustainability portfolios that can scale with the business.
   
5. Progress needs to be redefined
   Traditional ESG frameworks still matter, but they're no longer the primary way leaders define success. Executives want performance metrics that tie sustainability to financial outcomes such as cost savings, risk reduction, ROI and customer value.
   
   The majority of respondents said ROI and customer differentiation are among their top three priorities when selecting sustainability initiatives. Only a few ranked investor ratings or compliance as their top concern.
   
   This shift reflects growing maturity. Leaders increasingly view sustainability as a business opportunity rather than an obligation, one that can drive market access, brand value and pricing.
   
   The data also indicates a need for better tools. When asked if they would increase investment with access to a usable, enterprise-wide portfolio, 94% of executives said yes, including a large portion who said they'd be very likely to do so, because they need frameworks to connect ideas to impact.
   

Ready to scale your sustainability strategy?

UL Solutions' research reveals a clear message: industrial leaders are investing in sustainability, but without the structure, visibility and alignment needed to scale it across the enterprise, results will remain limited.

Organizations that treat sustainability innovation like any other strategic priority - tracked, collaborative and outcome-driven - will be better positioned to lead the next phase of industrial transformation.

Get all the details - read the full report.