Sustainability Practices Drive Profitability Among Top US and Canadian Companies, CSE Finds
Sustainability drives profitability in US and Canadian companies, according to new research released by the Center for Sustainability and Excellence (CSE). The organization’s 2026 Annual Research shows that structured sustainability practices are now closely linked to financial performance, resilience, and long-term value creation among the most profitable firms in North America.
The study analyzed 210 high-performing FT 500 companies across 21 sectors in the United States and Canada, focusing on businesses with the strongest profit growth between 2022 and 2025. The findings reinforce that sustainability is no longer a standalone initiative, but a core business function embedded in strategy, governance, and risk management.
Sustainability as a Core Business Driver
CSE’s 2026 research combined sustainability ratings from CDP, Sustainalytics, and S&P Global with leading global frameworks including GRI, SASB, TCFD, and the Science Based Targets initiative. This integrated approach allowed CSE to compare sustainability maturity across sectors and identify the practices most consistently associated with strong financial outcomes.
The analysis shows that companies treating sustainability as a strategic discipline, rather than a reporting exercise, demonstrate stronger governance structures, clearer accountability, and greater operational resilience.
Sustainability and Profitability Are Closely Linked
The research found that 72% of the most profitable companies in 2026 held medium to high sustainability ratings across at least three different rating systems. These companies consistently showed stronger climate risk management, clearer oversight at board and executive level, and measurable sustainability targets tied to business performance.
The data indicates that sustainability drives profitability in US and Canadian companies by improving operational efficiency, strengthening investor confidence, and increasing readiness for evolving regulatory requirements.
Sustainability Reporting Becomes Standard Practice
Among top-performing firms, sustainability reporting is now firmly embedded in corporate governance:
87% align their reporting with GRI
75% follow SASB standards
74% disclose climate risks through TCFD
Adoption rates across all frameworks increased year-on-year, signalling a shift from experimentation to full-scale implementation. Sustainability reporting is now treated as a business norm rather than a voluntary add-on.
Clear Sectoral Leaders and Laggards
The research highlights sharp contrasts between sectors. Energy and Business Services continue to lead, driven by sustained investment in decarbonization, structured materiality assessments, and mature sustainability governance frameworks.
Apparel and Wholesale sectors remain laggards, with inconsistent targets, weaker social indicators, and limited transparency. Within these sectors, however, sustainability leaders clearly differentiate themselves from underperforming peers.
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Material Sustainability Priorities Are Converging
Top sustainability performers consistently address a common set of material issues, including greenhouse gas emissions, energy and water use, waste management, and product sustainability.
Social and governance factors are equally central. High-performing companies systematically address diversity, human rights, cybersecurity, ethical conduct, and supply chain management rather than relying on selective disclosure.
Climate Targets Accelerate Across Companies
Climate ambition is gaining momentum. By 2025, 35% of companies had set near-term climate targets aligned with the Science Based Targets initiative, up from 21% in 2024. Over the same period, the share of companies without climate targets fell from 67% to 54%.
This shift reflects a broader change in mindset, with climate action increasingly treated as a core element of enterprise risk management rather than a reputational exercise.
Sustainability Accountability Moves to the C-Suite
CSE’s research confirms that sustainability oversight is moving to the highest levels of corporate leadership. Leading companies increasingly link sustainability performance to executive incentives and conduct regular single or double materiality assessments.
Lower-performing firms, by contrast, often lack internal sustainability training and show weaker social performance, increasing exposure to regulatory, reputational, and strategic risks.
According to Nikos Avlonas, President of CSE, “Sustainability now defines how companies grow, manage risk, and build trust. Organizations that embed sustainability into strategy outperform those that delay, financially and operationally.”
Sustainability Skills Shape Future Leadership
As sustainability drives profitability in US and Canadian companies, sustainability expertise is emerging as a defining leadership skill. CSE notes growing demand for practical capabilities across sustainability reporting, climate target setting, and strategy integration, reflecting the transition of sustainability from compliance function to business-critical discipline.
Learn more about CSE’s Global Certified Sustainability Practitioner Programs
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