What’s striking about the global ESG landscape right now is how differently countries are moving politically, culturally and practically. We’re seeing Environmental, Social and Governance strategies delayed in Europe, politicised in the United States, reframed in the UK, and accelerated in parts of the Middle East and Asia. Australia sits somewhere in the middle: not the most regulated globally, but moving faster than many peers in adopting mandatory climate and gender-equity related disclosures and enforcing it.
What distinguishes Australia’s approach is the combination of strong public expectations, clear regulatory momentum, and (for now) lower ideological heat than other regions. For leaders here, the challenge isn’t keeping up with global trends; it’s interpreting them. Australia is part of a global shift toward quieter, more disciplined ESG.
The global perspectives gathered in the Beyond ESG report make it clear that there’s value in paying attention to these shifts, how different markets are tackling similar challenges, and which ideas genuinely strengthen performance, governance and communication. In a relatively stable environment like ours, that opens space to make deliberate, well-‑paced decisions about what good looks like, instead of reacting to every international ripple.
What the world is Showing Us (and Why It’s Not What You Think)
The U.S.: Language is shifting but the business realities remain
The term ESG has become a lightning rod in parts of the United States. Some companies have softened their language, shifting from “ESG” to words like responsible business, resilience or talent development, in order to avoid political backlash. Yet the underlying drivers haven’t gone anywhere. Climate risks still push up insurance premiums; supply chain‑ pressures still demand transparency; investors still expect evidence of governance and climate alignment. As Jillian Semaan of US communications agency, FINN Partners puts it:
“Many leaders are not abandoning sustainability, they’re embedding it into their core strategy and communicating it with precision so they can stay transparent, resilient, and trusted in an increasingly polarised environment.”
The Middle East: ESG framed as growth, not ideology
While some Western markets debate the language of sustainability, countries across the Gulf are treating it as an economic accelerator. From water efficient‑ data centres to youth employment programs, sustainability and social impact are linked to national development priorities.
United Arab Emirates-based Marianna Wisden from the Mojo Group notes: “It’s striking that economies historically defined by oil wealth are now among the most active in mandating ESG commitments.”
Policymakers in the region tend to treat ESG as a practical lever for economic progress and something that supports jobs, attracts investment and underpins major infrastructure programs.
Brazil: Governance is quiet externally but decisive internally
Brazilian companies frequently talk about climate and social programs, but governance receives less public attention. Yet internally and especially for investors, governance is becoming central. Brazilian partners emphasise that governance is the piece that ties everything together: data quality, traceability, assurance, and long-term credibility. In other words, governance may not dominate the headlines, but it drives the decision ‑making.
The UK: High concern, but urgency is waning
The UK presents an interesting contradiction. Public concern about climate change remains high, but the willingness to act at pace has softened under cost‑of-living pressures. ESG isn’t‑ dismissed, it’s deprioritised. The result? Companies need to demonstrate impact that feels real and relevant, not abstract or idealistic.
As Sam Sharpe of London-based agency, Lansons puts it, “[consumers show] high concern but urgency is waning.”
This heightens the importance of connecting ESG to everyday stakes: affordability, jobs, community stability and long-term‑ resilience.
Australia: Quietly leading in places that matter
Amid all this divergence, Australia’s path looks surprisingly steady and practical. We’re ahead on several fronts:
- Gender pay-gap transparency through WGEA, far more mature than many OECD peers
- Modern slavery reporting, with increasing scrutiny.
- Reporting on climate risks, emissions and transition plans using the new global standards set by the International Sustainability Standards Board. Having started in 2025, it’s faster than many jurisdictions outside the EU
- Progressive action on mid and disinformation from ASIC and ACCC which are already issuing penalties for misleading claims
But there’s something missing, globally and here. There is no simple, widely relied-upon-equivalent to net zero for the social or governance pillars.
Across all levels of government in Australia, conversations – and in some cases early action – on measuring what matters and exploring wellbeing-focused budgets are gaining momentum.
This could help give the “S” (Social) more shape, helping to define targets for outcomes around fairness, inclusion, safety, quality of life, and economic opportunity.
As for the “G” (governance)? That may become the next narrative anchor informing transparent decision making, audit‑ready‑data, clear oversight structures, and diversity in leadership.
For organisations looking for clarity, this is a moment to help define what their positive impact looks like.
Five lessons for Australian organisations
1. Treat ESG as a business tool, not a marketing device
Swiss and EU practitioners are clear: ESG communications should be evidence based‑ and humble, grounded in the same discipline as financial reporting. “Saying less but proving more” builds far more trust than glossy declarations.
2. Move from compliance to performance
Mandatory reporting will set the floor, not the ceiling. The organisations that stand out will be those that link climate, social and governance actions to business outcomes: lower risk, improved productivity, stronger capital access and better talent retention.
3. Embed governance early and visibly
Governance is no longer the backend section of a report. It’s the driver of data integrity, decision‑ making‑, oversight and credibility. Strong governance structures also make communications simple because the story comes from the core of the organisation out, rather than being retrofitted over the top of it.
4. Communicate in ways that connect
Yes, we’re Golden Circle devotees. Framing Why, How, What for ESG: The “why” motivates, the “how” reassures and the “what” demonstrates progress. For government, this might mean technical metrics and methods. For investors, it’s strategy, risk and commercial outcomes and/or employees and customers, it’s meaningful stories about fairness, inclusion and the changes people can see.
5. Select the global practices that actually help your organisation
Australia’s steadiness is an advantage. Leaders have the room to borrow what works from other regions:
- The Middle East’s framing of ESG as competitiveness,
- Europe’s discipline around governance and assurance,
- The UK’s lessons on tone and pragmatism,
- The US experience with adapting language to the market.
What can you select and embed to strengthen performance of your organisation?
Where ImpactInstitute can help
Organisations don’t need more ESG jargon, they need clarity, confidence and communications that support strategy rather than distract from it. We help:
- turn complex reporting into credible narratives
- build impact-led messaging and storytelling
- develop audience-specific‑ messaging that stays consistent across channels
- avoid greenhushing without inviting unnecessary risk.
In a world where ESG is moving asynchronously, Australia has the opportunity to lead with steadiness. At ImpactInstitute, we call this the “Impact Era” and with the right support, organisations can lead a move to a more environmentally and socially responsible future.
The Beyond ESG report brings together insights from 11 countries across the PROI Worldwide partnership, offering a ground level‑ view of how organisations are navigating this moment.
If you’d like support defining and communicating your organisation’s commitment to ESG, reach out to our team for an initial consultation.