Sustainability has shifted from a niche concern to a defining priority for governments, investors and businesses worldwide. As we move into 2026, the conversation is no longer about whether climate action is necessary but how quickly organisations can adapt, innovate and scale solutions that genuinely move the needle.
Experts across climate tech, policy and corporate strategy are forecasting a year of accelerated transformation. With new regulations coming into force, record levels of green investment and rapidly maturing technologies, 2026 is positioned to be a year where sustainability evolves from ambition to measurable impact.
Will Sustainability Go Hyper-Local?
One of the most compelling possibilities for 2026 is a shift from large-scale sustainability programmes toward hyper-local, community-driven solutions. As global climate ambitions continue to collide with political and economic realities, many regions may choose to focus on what can be controlled closest to home. This could mean neighbourhood-level renewable grids, local carbon-capture initiatives or micro-manufacturing hubs designed to cut supply chain emissions.
Rather than waiting for sweeping policy changes, communities may increasingly take ownership of climate innovation. This grassroots approach could redefine what meaningful progress looks like in the year ahead, favouring agility and local accountability over grand national targets.
AI as the Sustainability Co-Pilot
While AI has been transforming industries for years, 2026 could mark the point where intelligent systems become core to how society manages sustainability. Instead of AI supporting sustainability work in the background, it may step into a more active, decision-making role.
Imagine AI systems dynamically adjusting energy grids in real time, forecasting climate risks with precision, or redesigning business processes to minimise waste. As AI models become more energy-efficient themselves, they could enable a new wave of climate-positive innovation that blends automation with environmental stewardship. If this shift accelerates, sustainability in 2026 might depend less on human guesswork and more on continuous, data-driven optimisation.
Our Experts
- Inge Bujakiewicz-Baars: Head of Sustainability at ReBound Returns
- Saskia van Gendt: Chief Sustainability Officer, Blue Yonder
- David Bage: Operations Director at IPP
- Gillian Garside-Wight: Director of Consulting at Aura
- Miguel Sabel: Executive Director, Strategy and Advisory and Head of Sustainability at Designit
- Philippine de T’Serclaes: Chief Sustainability Officer at Dassault Systèmes
- Sara Walton: Sustainability Lead at BSI
- Sophie Graham: Chief Sustainability Officer at IFS
- Peter Juhasz: CEO and Co-Founder of Syrvi.ai
- Freddie House: CRO of sustainability platform Sweep
- Helen Salvin: SVP Energy and Sustainability, The PHA Group
Inge Bujakiewicz-Baars, Head of Sustainability at ReBound Returns
“Technology and data use will increase circularity
“By 2026, digital tools are likely to play a far larger role in shaping greener logistics practices. Carbon measurement dashboards, including the one used at ReBound Returns, are expected to become more common as retailers look for clearer visibility of emissions for each parcel handled. This will give teams a stronger basis for comparing carriers and countries, helping them choose routes and partners with lower environmental impact.
“Digital systems are also set to guide circular logistics pathways. Rather than sending unwanted items back to retailer warehouses as a default, providers will be able to direct returns to reuse, repair or recycling options. At ReBound Returns, our work with groups such as United Repair Centre, ESO Recycling and other specialist partners shows how this model can function at scale. These links point towards a future where returns are steered to suitable outcomes earlier in the journey, reducing unnecessary transport and cutting the footprint of reverse logistics.”
Saskia van Gendt, Chief Sustainability Officer at Blue Yonder
“In 2026, sustainability will move from aspiration to accountability. With the EU’s Ecodesign for Sustainable Products Regulation (ESPR) banning the destruction of unsold goods and enforcing supply chain transparency, businesses will face unprecedented pressure to demonstrate measurable progress toward circularity. This marks a pivotal shift—from sustainability as a branding exercise to a verifiable operational standard.
“The year ahead will see circular economy principles embedded in core business models. Companies will redesign products for durability, reuse, and recyclability while investing in technologies that provide full visibility from raw material to resale. Artificial intelligence will be central to this shift, driving efficiencies through predictive demand planning, energy optimisation, and smarter reverse logistics. By connecting data across supply chain tiers, AI will enable companies to trace materials, verify compliance, and prevent waste before it occurs.
“There is immense opportunity at the intersection of technology and sustainability. According to Blue Yonder’s Supply Chain Compass report, which surveyed nearly 700 global supply chain leaders, respondents who named sustainability as a top three strategic priority are on the leading edge of technology and AI adoption: 94% say end-to-end data connectivity is fundamental to the success of their business (vs. 85% total), 80% say AI is already changing how they operate (vs. 74% total) and 61% say they are currently investigating generative AI.
“This convergence of regulation and technology is ushering in a new era of transparency. The first Corporate Sustainability Reporting Directive (CSRD) disclosures in 2025 set the tone, making sustainability data as auditable as financial data. By 2026, this expectation will extend globally, influencing supply chain partners far beyond the EU.
“At Blue Yonder, we see customers already leading the change: retailers preventing food spoilage through dynamic pricing, fashion brands curbing overproduction with intelligent planning, and manufacturers reclaiming value through optimised returns.
“By the end of 2026, the circular economy will no longer be aspirational; it will be a regulatory and technological reality. Those who lead through innovation and transparency will define the next generation of sustainable business.”
David Bage, Operations Director at IPP
“I predict we will see an increase in automated planning using improved algorithms and AI. Better and improved systems will help any business, but the adoption of AI tools within it will be the key ‘big step’.
“Automated planning of our transport routes has the potential to deliver cost reductions and reduced Co2 emissions, particularly in a business such as ours where cutting unnecessary mileage is already part of our DNA.
“We work with our customers to backfill empty legs and reduce empty running, the environmentally-harmful process where a lorry returns to base without a payload on board. Enhancing this process using AI has the potential to deliver even greater Co2 reductions.”
Gillian Garside-Wight, Director of Consulting at Aura
“2026 is going to be a major year for Extended Producer Responsibility reporting in the UK. Although larger producers had their first reporting deadline in October, April 2026 will be the first deadline for smaller producers as well another six-month milestone for the bigger players.
“That means fees that businesses will want to mitigate, and gargantuan fines for non-compliance. In some cases, those penalty fines could be up to a staggering 5% of annual turnover, which for a big global brand could be millions of pounds.
“The biggest impact for brands selling in the U.S. will likely be for California, which had its SB 54 EPR reporting deadline on November 15, 2025.
“The coming 12 months will see the ripples of that deadline continuing to impact brands and retailers globally. It will be devastating for many who sell in the state with the world’s fifth-largest economy, who will find themselves potentially facing significant fees as well as significant fines for non-compliance, of up to $50,000 per day.
“In addition, October 2026 is when California’s Truth in Labelling legislation comes into force. Brands and retailers will have to expect litigation from then on, if their packaging says it’s recyclable when it is not, or if it’s misleading.
“Businesses are going to need to ensure they have 100% accurate data on every component that makes up their packaging, or else the financial penalties are going to leave them reeling. That data will also be the only way to ensure that their packaging is meeting consumer demands for greater recyclability and sustainability.”
Miguel Sabel, Executive Director, Strategy and Advisory and Head of Sustainability at Designit
Hope as a Winning Strategy
“2025 has been a challenging year for sustainability, with the political and corporate pendulum swinging heavily away from environmental and social concerns. Yet, as Al Gore recently stated at COP30, that shift may have already peaked.
“Analysts argue that many grew tired of social and environmental priorities dominating public discourse—a point that’s hard to dispute. But perpetually opposing the common good is even more exhausting. If we must look at it through this lens, hope is more attractive and easier to sell.
“Over the past two years, some of the world’s most powerful corporations have nearly abandoned their sustainability efforts. That decision will remain part of their brand identity for years to come. In 2026 and beyond, as we move past this anti-sustainability peak, companies that consistently stayed committed to hope may discover they’ve built a resilient competitive advantage. One that will matter even more as the pendulum swings back to a more human-centered position.”
It’s (Still) the Economy, Stupid
“It’s difficult to argue with James Carville’s old campaign slogan. When purpose isn’t a strong enough driver, and even when science is ignored, money typically wins the argument.
“2025 will be another record year for renewables and electric vehicles. While stability and comfort matter, financial motivations have been a dominant force. And this momentum is irreversible. In 2026, EVs, renewable generation (especially solar), and storage will continue driving costs down while scaling up impact.
“But that impact goes beyond penetration percentages in a spreadsheet and fundamentally changing user behaviors and expectations. Once consumers and businesses experience lower operating costs, energy independence, and measurable savings, the transition becomes self-reinforcing. In 2026, economics won’t just favor sustainability; it will make the old way of doing business (even more) obsolete. Those still clinging to outdated models won’t just be on the wrong side of history; they’ll be on the wrong side of the balance sheet.”
Philippine de T’Serclaes, Chief Sustainability Officer at Dassault Systèmes
“Despite some headwinds, the private sector is doubling down on sustainability actions. The business case for sustainability is now much stronger than ever; showing a momentum that will continue to drive this reinforcement of action into 2026. For instance, 2025 investment in clean-energy technologies hit a record $2.2 trillion (double the $1.1 trillion investment in fossil fuels).
“This will certainly drive a significant shift towards circularity, with companies prioritising new business models, fuelled by the rising cost and complexity of materials. This is specifically important in achieving Scope 3 targets and designing products that last longer and can be easily repaired, refurbished, or remanufactured, ultimately reducing the need for new, energy-intensive production cycles.
“Advancements in technology, including artificial intelligence, may continue to inform the debate on effectively measuring and communicating the environmental impact of AI (such as energy use, emissions, water use), balanced against AI’s benefits. While progress has been made, both businesses and governments need to recognise the role that technology can play to accelerate improvements in energy efficiency, reduce material waste, and intensify efforts to bring down emissions. Only by focusing on potential as a powerful tool will they be able to create effective solutions that are needed for a low-carbon world.”
Sara Walton, Sustainability Lead at BSI
“In 2026, organizations will expand their sustainability focus beyond emissions reduction to embrace broader environmental interventions, with circularity at the forefront. Circular practices and resource efficiency will be seen as essential for economic growth and achieving national emissions targets, while procurement should become a critical lever driven by central and devolved government agendas around circular economy practices.
“Supply chain resilience for food, energy, and water will rise in importance, driving regenerative approaches to soil, land, and water use. To enable this shift, we anticipate rapid adoption of technologies such as industrial biotechnology, digitization and AI.”
Sophie Graham: Chief Sustainability Officer at IFS
“As we move into 2026, the sustainability conversation must shift decisively from broad commitments to demonstrable, measurable performance. Around the world, governments and industries are recognising that AI and digital technologies are becoming essential tools in turning climate ambition into real-world impact. This convergence of ‘twin transitions’ in both AI and energy has never been more relevant than in the hard-to-abate, industrial sectors, where efficiency gains translate into major emission reductions.
“Recent research shows that Industrial AI is already delivering results by tapping into vast operational datasets and transforming them into actionable insights. These technologies are improving decision-making across the entire value chain, from asset design and predictive maintenance to energy management, logistics planning, and route optimisation. When effectively integrated and paired with supportive policy frameworks, AI can act as a powerful accelerant – helping organisations scale decarbonisation efforts, strengthen resilience, and move faster toward achieving global climate goals.”
Peter Juhasz, CEO and Co-Founder of Syrvi.ai
“In 2026, I expect sustainability to become far more operational and far less theoretical. Many businesses already understand the need to reduce emissions; what they often lack is visibility. AI will play a bigger role here, not only in optimising how solar energy is generated and used, but also in identifying the buildings and operations where the impact would be most significant.
“High-consumption warehouses and commercial sites are a good example, and many of them don’t realise how much they could save by switching to solar, or where their biggest inefficiencies sit. AI can surface those insights quickly, giving installers and decision-makers clearer data to work from.
“What won’t change is the pressure to demonstrate measurable results. Companies will still be judged by performance, not intention. A key trend next year will be automated systems that quietly remove energy waste in the background. It’s practical, scalable, and increasingly essential.”
Freddie House, CRO of sustainability platform Sweep
“1. Scope 3 moves from estimates to contracts
As understanding of Scope 3 emissions matures across industries, I predict that we will see a broader shift away from companies simply estimating the carbon emissions of their suppliers, or requesting voluntary surveys, and instead see a trend towards emissions data clauses being written into supplier contracts – with performance-based incentives.
“We’ll also see a growth in the measurement of category-specific primary data, such as Cat. 1 – purchased goods and services, or Cat. 4 – upstream transport and/or distribution.
Procurement teams, who are increasingly sensitive to their role in the carbon reduction picture, will start to introduce “carbon-adjusted Total Cost of Ownership (TCO)” and standardized abatement clauses.
“2. Product-level disclosures hit the customer interface
Once purely voluntary initiatives, product-level environmental impact disclosures are rapidly expanding to become widespread mandatory requirements. So far, this has primarily been driven by new regulations in Europe, as well as evolving global standards.
Simply put: granular product-specific data is becoming the new baseline for compliance and consumer demand.
“Retail and B2B settings will be the frontrunners in this expansion, and with consumer awareness growing, scrutiny will increase around Environmental Product Declarations (EPDs) and Product Carbon Footprints (PCFs), or the broader Product Environmental Footprints (PEFs).
“Meanwhile, regulations around “green claims” will continue to gain ground around the world, pushing substantiation standards, and reducing non-evidence-backed language in marketing.
“3. European companies need to keep an eye on US competitors
“As a recent study by Bain pointed out, “there may be less buzz around sustainability today, but it’s actually moving up the CEO priority list, with a new focus on business value. For example, 25% of industrial emissions can now be cut with ROI-positive techniques”.
This is exactly the attitude that I have been observing for some time among US companies. European companies may have thought the sustainability heat was off following a wave of anti-ESG sentiment in the United States and a series of waterings-down of the EU’s sustainability laws. However they need to be aware that if they take the foot off the pedal, American competitors, many of whom are taking the opposite approach, are likely to gain a vital competitive advantage.
“Now is precisely the time for organisations to take stock of their nonfinancial data, and use it to identify the primary areas where action can be taken to reduce operational costs, derisk supply chains, innovate and attract new investment, customers, and talent.
The race to build business value and resilience is very much on, and in 2026 it will only heat up.
“4. Resilience becomes a defining factor for investors
Investors are increasingly prioritising companies that can demonstrate credible climate resilience: with transition plans, supply-chain visibility, and exposure to physical risks now playing a decisive role in capital allocation.
“This is pushing leading companies to shift from static, annual sustainability reporting to continuous risk monitoring built on reliable, high-quality data. Those who move early to understand their exposure and act on it will be better positioned to manage cost volatility, secure supply, innovate, and attract both customers and investment.”
Helen Salvin, SVP Energy and Sustainability, The PHA Group
“2026 will mark a bit of a shift change as we near 2030 deadlines globally. In the UK there will be an emphasis on the circular economy, with the Deposit Return Scheme due to come into force in 2027. There will be a shift from voluntary to mandatory reporting driven by stricter regulations such as the FCA’s ESG ratings rules, which also has implications for how businesses communicate in the new year.
“Tackling Scope 3 emissions will be a continued focus but with a new sense of urgency from businesses wanting to tackle the carbon impact of their supply chains. We will also see more debate around the ethics of AI adoption as we battle severe climate change. The tech giants will be held to a different level of scrutiny, and reputations could tarnished in the process.”
