For more than two decades, sustainability has been a familiar word in business. Mission statements promise environmental responsibility, sustainable futures and climate action. Websites highlight values, commitments and aspirations. Many firms now publish sustainability pages or reports, even when they are not required to do so.
What might we reasonably expect from businesses in 2026?
First, we should expect clarity over ambition. Vague claims about "doing our bit" or "working towards sustainability" are losing meaning. Instead, businesses that are trusted tend to be specific about what they are focusing on and, just as importantly, what they are not yet addressing. A clear explanation of priorities and clear statements on progress towards those priorities builds more confidence than an all-encompassing vague promise.
Second, given the above, we should expect to see evidence of progress. This does not always require complex metrics. It might involve showing changes in energy use, waste practices, procurement choices or transport arrangements over time. The key question is simple: can a business point to something that is positively different now compared with two or three years ago?
Third, in order to explain the progress there will be a requirement for a dose of honesty about trade-offs. Sustainability transitions are rarely cost-free or straightforward. Businesses that acknowledge tensions between affordability and environmental goals, or between short-term pressures and long-term resilience are usually seen as more credible than those that suggest easy wins everywhere. In 2026 it would be good to see transparency about challenges as this would signal seriousness rather than failure.
Fourth, sustainability in 2026 needs to be wider than environmental considerations and emissions. We expect to see that sustainability strategies increasingly include people and social outcomes. Worker wellbeing, job security, skills development and safe transitions matter, particularly in regions experiencing economic and environmental change. A business that invests in its workforce while navigating sustainability challenges is contributing to long-term regional resilience, not just its own bottom line.
Finally, we should expect alignment between words and everyday decisions. Sustainability is substantiated through how businesses choose suppliers, price products, manage assets and respond to shocks. In 2026 sustainability needs to be integrated into decision-making — to become part of how businesses adapt and endure.
However, the more difficult question we must ask in 2026, is whether these shifts in business practice are enough. While sustainability commitments and incremental improvements are important, they must be assessed against the physical realities of the planet. There remains a clear and troubling gap between what climate science indicates is necessary and the pace and scale of global policy and business action.
The science is unambiguous. Global temperatures are already approaching, and in some contexts exceeding, the 1.5°C threshold, while current policies remain insufficient to reliably limit warming to even 2°C, according to assessments by Climate Action Tracker. This mismatch matters because planetary boundaries are not abstract concepts, they describe physical limits beyond which climate impacts accelerate and risks compound.
Recent analysis from Climate Analytics, presented in the report Rescuing 1.5 Degrees, makes clear that avoiding further overshoot requires urgent and decisive action this decade. The report highlights four priorities: widespread electrification powered by renewable energy; a much faster phase-out of fossil fuels; the rapid scaling of carbon dioxide removal at commercial levels; and significantly stronger action to reduce methane emissions. These are presented not as optional add-ons but instead as foundational to stabilising the climate system and avoiding irreversible tipping points.
It is likely that many commentaries on sustainable business in 2026 will focus on improved disclosures, better metrics and more refined strategies. These developments are necessary as they represent progress beyond business-as-usual. Yet they are not sufficient on their own. Against the backdrop of escalating physical impacts, 2026 must be understood as a year that demands acceleration, not consolidation.
For businesses, this means moving beyond incrementalism and engaging seriously with the scale of change implied by climate science. For society more broadly, it means recognising that the purpose of sustainability transitions is not simply organisational resilience or reputational advantage, but the preservation of conditions that allow future generations to thrive. In Aotearoa New Zealand, this includes the simple but profound question of whether future generations will inherit the chance to experience glaciers, stable coastlines and functioning ecosystems as part of everyday life.
The challenge of 2026, then, is not whether sustainable business is advancing — but whether it is advancing fast enough to within the planet’s limits.
Sara Walton is a professor of sustainability and business at the Otago Business School, University of Otago and a member of He Kaupapa Hononga: Otago’s Climate Change Research Network.
