Sustainability Isn’t Dead: Why Businesses Should Ignore the Deregulation Noise

For anyone glancing at recent headlines, it might seem as though sustainability regulation is being rolled back worldwide. From the European Union’s Omnibus Directive to political shifts in the US, the narrative suggests a widespread loosening of sustainability rules. 

But that is, in fact, misleading – and potentially dangerous for businesses that mistake deregulation for disinterest. 

While policymakers in Brussels and Washington may be streamlining frameworks, national governments – including the UK – are moving in the opposite direction, strengthening expectations around due diligence, human rights and environmental accountability. 

“People think that if there’s simplification or removal of certain legislative requirements, it means there’s a removal of the sustainability imperative. But that’s just not the case,” explains Alice Strevens, Sustainability Director at Forvis Mazars. 

UK Tightening Expectations 

The fact is that while global headlines fixate on deregulation, the UK Government as well as other jurisdictions, continue to strengthen domestic frameworks. 

“In the UK, the Modern Slavery Act has for many years just been about a report for most businesses,” says Strevens. “But new statutory guidance introduced in March this year indicates a tightening of requirements aligned with international frameworks.” 

That alignment – with the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance – shows how international norms are increasingly being embedded into UK statutory guidance. 

“What we’re seeing in statutory guidance is an adoption of international principles at the national level. The UK Government has also published its intention to increase mandatory responsible due diligence requirements for supply chains in its trade strategy this year,” says Strevens. 

The message for businesses is clear: even as regional regulation appears to soften, national-level enforcement and expectations are rising. In the UK, a new consultation on sustainability reporting under IFRS S1 and S2 could further align domestic disclosure requirements with international standards. 

Assurance and Accountability 

Another key trend is a growing demand for assurance – formal verification of sustainability information. 

“There is a strengthening of the move towards assurance,” explains Michelle Olckers, a Partner at Forvis Mazars. “More boards, and more of the C-suite – and the audit committees – are really interested in understanding ‘what do we need to do to stand out, be competitive, and be able to position ourselves well within our markets?’” 

What started with limited climate metrics is now expanding to full social and governance disclosures. And this shift is forcing companies to strengthen internal controls, governance, and processes around sustainability data. As boards take greater accountability, the role of internal audit and risk functions becomes increasingly central to embedding sustainability across operations. 

From Passion Project to Business Imperative 

However, a significant challenge to that shift is that sustainability within companies is still too often siloed – it is owned by small teams or individuals rather than integrated into business functions. 

“We speak to somebody within an organisation, and they’ve got one or two people focusing on sustainability,” says Olckers. “They’re really struggling because they know how big this is, but they don’t know how to get that across to their C-suite.” 

Instead, the challenge – and opportunity – lies in building capability across the organisation. 

“It doesn’t necessarily mean bringing in sustainability people within a sustainability team,” says Strevens. “It’s thinking about how you build the skill sets within existing functions: procurement, internal audit, risk, governance. Sustainability has historically been seen on the side, and that’s one of the reasons individuals have struggled to get the business case across.” 

For many companies, sustainability is perceived as a “passion project” rather than a business necessity. But with tightening regulations and investor scrutiny, that mindset is set to change rapidly. 

Beyond Compliance: Sustainability as Strategy 

Another common mistake that organisations make is viewing sustainability primarily through the lens of reporting or compliance. But focusing on disclosure alone misses the genuine business opportunity. 

“Organisations should be thinking about sustainability from a strategic perspective in relation to their business model and value chain,” says Strevens. 

She emphasises that sustainability shouldn’t be treated as a communications exercise or a checkbox activity. Instead, it should be embedded in business strategy, influencing how resources are allocated, how risks are managed, and where opportunities lie. 

“By doing that, organisations can identify where they can apply their resources, how they can address impacts, risks and opportunities. Then the output is what they can say in a report,” says Strevens. “They almost need to forget about that ultimate end point of making the disclosure and think more strategically about where sustainability adds value to their business.” 

In other words, reporting should be the result of sound sustainability management, not the driver of it. 

Ignore the Noise: It’s Business as Usual 

Notwithstanding the shifting political narrative, the fundamentals of sustainability haven’t changed. 

“Forget the headlines,” says Strevens. “Forget the narrative about pushbacks against sustainability initiatives. It’s business as usual.” 

The reality is that sustainability remains a critical component of long-term business resilience, competitiveness, and value creation. 

If you’re wondering where to begin, think about conducting a materiality assessment to understand what sustainability issues are truly relevant to your business, and focus on the strategic areas where your organisation can make the greatest impact. 

Strevens adds: “It isn’t about the recycling bins in the kitchen, but about a top-down strategic approach to really determine how sustainability can add value to your business.” 

Conclusion 

Despite the headlines, sustainability is far from being deregulated out of existence. The political conversation may be shifting, but the underlying business drivers – regulation, stakeholder pressure, and competitive differentiation – are only intensifying. 

In fact, sustainability is becoming more strategic, more accountable, and more essential than ever for businesses that want to stay ahead.