The Sustainability Market in 2026: Why this year marks a turning point
Verdantix recently released their 2026 predictions for sustainability, covering critical areas including reporting, governance and assurance, supply chain management, and AI implementation. Several of their 2025 predictions came to fruition, with trends materializing throughout the year such as uneven CSRD reporting quality and methodology inconsistencies, the growth of greenhushing as companies became more cautious about sustainability claims, and a surge in verification services among first-wave CSRD filers.
These trends provide useful context for sustainability leaders planning their strategies for the years ahead. While you can check out the full Verdantix report here, we’ve highlighted our top predictions and key trends shaping the corporate sustainability landscape in 2026:
Prediction 1: AI and Green Technology Will Reshape the Sustainability Market
AI agents are already helping deliver near real-time sustainability data, but lacking governance and review processes will result in several high-profile missteps that jeopardize brand reputations. Momentum behind the application of AI for sustainability work continues to accelerate. According to Verdantix research, 25% of firms are already using AI to help draft sustainability report content, with another 39% highly likely to adopt AI tools over the next two years. While AI promises near real-time data processing and analysis capabilities, the research also reveals a critical concern: the risk of introducing errors and inaccuracies is viewed as the greatest barrier to AI adoption among sustainability leaders.
The Growing Governance Risk Behind AI-Driven Sustainability Reporting
The Clearyst Take: Building robust governance structures within your organization is critical not only for sustainability initiatives, but across all business functions utilizing AI. Organizations that establish clear protocols for how AI is used, implement thorough review processes, and maintain human oversight will be better positioned to harness AI's benefits while mitigating reputational risks. Creating frameworks that define when AI can be used autonomously versus when human verification is required will help establish audit trails for AI-generated content and ensure cross-functional alignment on AI governance standards. This becomes particularly important as organizations prepare for assurance requirements with sustainability reporting (California’s SB 253 and SB 261) and compliance regulations (Extended Producer Responsibility).
Prediction 2: CFOs Will Redefine Value in the Sustainability Market
Sustainability leaders will be held accountable as CFOs require commitments that projects will deliver a positive ROI. Financial scrutiny of sustainability initiatives is intensifying across the market as shown through recent Verdantix data: CFO involvement in funding ESG and sustainability strategy implementation has surged from 59% in 2023 to 77% in 2025. More significantly, over 60% of sustainability leaders now indicate that demonstrating business value is a “very important” or “top priority” goal. This shift reflects a fundamental change in how sustainability is being viewed; it’s a strategic business imperative that must justify its investment.
Sustainability Teams Will Be Required to Quantify Business Impact
The Clearyst Take: We're increasingly seeing this dynamic play out with our customers and prospects across various industries. Sustainability leaders must be able to articulate value in terms that resonate with finance teams: operational efficiency gains, business resiliency improvements, cost reduction opportunities, and revenue growth potential. The ability to tie sustainability initiatives to clear financial outcomes will determine which programs receive funding. Forward-thinking organizations are already establishing joint frameworks across multiple internal teams (Sustainability, Finance, IT, etc.) to evaluate and track the business impact of environmental and social initiatives.
Prediction 3: Product-Level Sustainability Data and Assurance Will Become a Competitive Requirement in the Sustainability Market
Demand for assured product sustainability data will surge, with 35% of the Financial Times Stock Exchange (FTSE) 250 publishing assurance opinions covering product sustainability claims in 2026.
Scope 3 and SBTi Requirements Will Force More Granular Data Collection
The Clearyst Take: In addition to the assurance trend, the new version of the Science Based Targets Initiative (SBTi) v2 will require more granular activity-based data for Scope 3 emissions calculations. This convergence of assurance requirements and enhanced calculation methodologies means companies can no longer rely on high-level estimates or aggregations. Detailed product-level data serves a dual purpose: it enables more accurate emissions accounting and creates opportunities to link sustainability metrics directly to financial performance.
Additionally, supply chain pressure is becoming a major driver for collecting and managing sustainability data. Enterprise corporations with extensive, global supply chains (Walmart, Amazon, Google, Microsoft) are increasingly requiring key vendors to prove sustainability performance or risk losing contracts. Companies that invest now in systems capable of tracking, verifying, and reporting product-level sustainability data will have a significant competitive advantage in securing and maintaining relationships with major customers.
Prediction 4: B2B Customer Demand Drives Growth in the Green Technology and Sustainability Market
Customer demand for sustainable products will rise in B2B segments. Verdantix research highlights the chemicals sector as a leader in this transformation, with 90% of chemical firms reporting high business impact from the circular transition. Companies like Evonik are targeting €1 billion in additional annual sales from circular chemical products by 2030, while Dow has secured 65,000 metric tons of annual circular feedstock through advanced recycling partnerships. This trend, however, coincides with a challenging reality. According to a December 2025 GlobeScan report, consumer trust is decreasing with the rise of greenhushing as companies avoid disclosing sustainability information even when making genuine progress.
Verified, Data-Backed Claims Will Be Essential to Win Market Trust
The Clearyst Take: As consumer demand rises for sustainable products and new offerings must meet increasingly rigorous standards, companies face a delicate balance. They must communicate sustainability efforts effectively while avoiding the perception of greenwashing that has made many organizations overly cautious. The solution lies in substantiated, verified, data-backed claims. Companies that can transparently demonstrate how their products meet specific quality standards and sustainability criteria, with third-party verification where appropriate, will build trust with customers and differentiate themselves in the market.
Prediction 5: Sustainability Software Will Become Essential for Navigating Regulatory Complexity
Multiple Verdantix predictions for 2026 point to the critical role of software. There will be at least 10 acquisitions in the sustainability software market as consolidation accelerates; ten software vendors will significantly invest in dedicated tools to help suppliers streamline compliance tracking and improve social and environmental metrics; and APAC will issue additional packaging-specific EPR regulations, driving at least five software vendors to release supporting modules.
The regulatory landscape of 2025 was characterized by significant turbulence. The EU's Omnibus Proposals dramatically reset CSRD requirements, with roughly 90% fewer firms now subject to reporting compared to initial expectations. California's climate disclosure laws faced legal challenges and implementation delays. The EUDR received a one-year postponement with new exemptions. This regulatory volatility is creating a challenging environment where companies must remain agile and responsive to frequent changes.
At the same time, the software market is maturing rapidly. Verdantix notes that buyers have pivoted from point solutions to enterprise-wide sustainability platforms, and commoditized features are forcing vendors to acquire missing capabilities.
Flexible, End-to-End Solutions Will Outpace Point Technologies
The Clearyst Take: This convergence of regulatory uncertainty and software market maturation highlights where services and software intersect. At Clearyst, we operate, build, partner with, and acquire software tools to help our customers work efficiently. Companies continue to seek ways to automate processes and achieve ROI on sustainability initiatives - whether for regulatory compliance, growth through new revenue opportunities and contracts, or other strategic objectives. Adopt solutions that provide flexibility to adapt to regulatory changes while offering the integration and automation needed to manage complex data collection and reporting methodologies efficiently. Invest in the right approach of software and services to better position your organization to navigate regulatory shifts while still maintaining productivity.
Looking Ahead: How to Navigate Sustainability Trends in 2026
The sustainability landscape in 2026 will be defined by the complex interplay of accelerating stakeholder expectations, governance structures, increasing regulation, and the need for quantifiable business value. Ensure success through creating robust governance structures, building strong partnerships between all stakeholders and departments, leveraging technology, and maintaining the flexibility to adapt to ongoing regulatory shifts.
At Clearyst, we help mid-market and enterprise organizations develop and implement sustainability strategies that deliver sustainable impact and business value. Whether you're looking to establish new governance frameworks, build the business case for sustainability investments, implement product-level tracking systems, or navigate complex regulatory requirements, our team brings the expertise and tools to help you succeed.
Ready to prepare your organization for these 2026 trends? Contact our team to discuss how we can help you turn these predictions into strategic advantages.