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Sustainability transitions from pressure to profitability

     

Increasing awareness of the business value of sustainability has many leaders changing their perspective, seeing sustainability initiatives less as an obligation and more as an opportunity for greater performance. The number of executives globally who understand the business case for sustainability tripled between 2022 and 2023, and the majority of 2025 State of Design & Make survey respondents say that sustainability is crucial for future business growth in the next three years. 

This signals a shift in sentiment and priorities, driven by both the short- and long-term opportunities that sustainability can provide. Seventy-two percent of business leaders believe that sustainability measures can generate in excess of 5% of their annual revenue, a figure that has remained relatively strong compared to last year (79%), despite this year’s cost concerns.

While organizations across Design and Make industries are still influenced by stakeholders to become more sustainable, that influence appears to be waning. For instance, this year, 72% of leaders say their sustainability initiatives were influenced by customers, compared to 83% in 2024—a 13% year-over-year decline.

“All the work that we’re doing towards sustainability differentiates us with clients.”

– Mohamad Kassir, Global BIM Manager, Egis Group, an engineering and consulting firm headquartered in France

Stakeholder influence is in decline

Survey question: How influential are the following groups in motivating your company or organization to create and meet sustainability goals? 5-point scale. Top two = influential.

The decline in stakeholder influence is universal across all groups, including customers, employees, investors, and policymakers. New to the survey this year as possible influencers are partners (70%), who rank the same as employees, and suppliers (65%), which are just above policymakers in the 2025 results.

Although the influence of stakeholder groups is down, sustainability efforts remain steady, with 95% of leaders reporting their organizations are making changes to be more sustainable. This suggests that organizations are starting to take the reins on sustainability initiatives by incorporating them into long-term strategy rather than allowing external influences to guide decisions.

Closing the gap between long-term vs. short-term strategy

Percentage of respondents who agree to statements: 1. Improving sustainability practices is a good long-term business decision. 2. Improving sustainability practices is a good short-term business decision. 5-point scale. Top two = agree. Gap = difference between long-term and short-term for each year.

At the heart of this perspective shift is the growing understanding that, while historically seen as a long-term revenue play, improving sustainability is also a good near-term strategy. This year, the gap between leaders who see sustainability as a short-term versus long-term strategy has narrowed to just 12%, signaling that sustainability is seen as good for business overall.

Digitally mature companies appear to be at an advantage when it comes to reaping sustainability benefits. Eighty-five percent of digitally mature organizations see long-term benefits from sustainability and 74% see short-term benefits, compared to just 67% and 53%, respectively, at less digitally mature organizations.

Sustainability efforts are also easing talent struggles at digitally mature companies, with 75% of leaders reporting their sustainability efforts help attract and retain talent, compared to 54% at less digitally mature companies. Industry interviews reinforce these findings, with leaders saying younger skilled workers want to join organizations that are both technologically advanced and committed to building a better future.

Leaders at digitally mature companies appear to be seeing the transformational potential of sustainability across their organizations—and are likely increasing their budgets to match. Seventy-four percent of leaders say they will increase their investments in environmental sustainability, compared to just 52% at less digitally mature companies.

“We have ongoing enhancements to our sustainability practices and use of technology, and we see them as two sides of the same coin. At the end of the day, sustainability helps reduce costs.”

– Eng. Tarek ElGamal, Chairman, Redcon Construction, an engineering, construction, and infrastructure company headquartered in Egypt

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