Ecovadis: Manufacturing Boosts Investment in Sustainability

As climate disruption, geopolitical uncertainty and regulatory change continue to reshape business conditions, sustainability becomes more than a values-driven initiative for US manufacturers. It now stands as a strategic necessity. 

The EcoVadis 2025 Sustainability Outlook Report outlines how leaders in the manufacturing sector are adapting to these pressures by focusing on core operations, supply chain integrity and long-term competitiveness.

Sustainability spending increases as messaging declines

While political pushback against environmental, social and governance (ESG) rules grows louder, most companies are not stepping back. 

Among the 400 executives surveyed by EcoVadis, 87% say they have either maintained or increased their sustainability investments since the start of 2025.

However, outward communication does not match this inward commitment. Rather, a pattern of "greenhushing" is emerging. According to the report, 31% of firms are investing more in sustainability while deliberately promoting their efforts less. 

Another 8% have stopped discussing sustainability in public altogether.

This quiet approach reflects a broader shift: sustainability is moving away from branding exercises and becoming part of a company's structural strategy. 

EcoVadis states that sustainability today is "no longer about values alone, but about business viability and resilience."

Sustainable supply chains seen as business-critical

For many executives, the real test of sustainability is how it strengthens the supply chain. 

EcoVadis finds that 65% of leaders believe sustainable supply chain practices help reduce risk, lower costs and support brand strength. These benefits are especially relevant in manufacturing, where disruptions can have far-reaching impacts.

Among finance leaders, more than half (52%) view sustainability as critical to competitiveness, not a financial burden. Only 19% still categorise it as a cost centre. 

Customer relationships are also affected: 62% of directors and 59% of C-suite leaders say sustainability directly supports customer retention.

These views are even more pertinent for sectors governed by due diligence regulations. For these businesses, supply chain sustainability is not just strategic, it is essential.

Regulatory rollbacks raise concern, not relief

As debates over ESG rules intensify, many executives express concern about the effect of deregulation. Nearly half (47%) of C-suite respondents believe that relaxing ESG mandates will lead to more supply chain disruption. Another 41% predict increased consumer prices, tied to climate-related cost burdens.

Pierre-François Thaler, Co-Founder and Co-CEO of EcoVadis, puts it plainly: “Even as the debate over business sustainability heats up, executives are focused on the reality – sustainability is what keeps supply chains running and customers on board.”

Pierre-François adds that leading companies are focusing on "transparency and accountability" by adopting tools to monitor supplier performance and improve compliance.

Executives also fear that deregulation may aggravate inflation and lead to labour issues. In the survey, 39% anticipate restricted access to critical resources and 31% warn of increased worker mistreatment.

Although around 25% see deregulation as a route to innovation, most disagree. A clear 63% of those surveyed believe ESG rollbacks will increase sustainability risks, not reduce them.

Data integrity and technology adoption remain challenges

Compliance remains a concern. Just over half of respondents say they are on track to meet data requirements for California’s SB 253 and the EU’s Corporate Sustainability Reporting Directive (CSRD). 

Readiness drops even further for Canada’s Modern Slavery Act (39%) and the EU’s Carbon Border Adjustment Mechanism (44%).

One major issue is the quality of data used in reporting. One-third of executives admit they use rough estimates in ESG disclosures, even when they know these are inaccurate. This reveals a system under pressure, where reporting deadlines clash with inadequate infrastructure.

In response, many firms are turning to technology. ESG risk mapping tools are the most commonly used (57%), followed by supplier engagement platforms (49%) and supply base mapping (34%). 

Yet Scope 3 emissions—those arising indirectly through supply chains—remain largely unmeasured. Only 18% currently use tools to map them.

Julia Salant, General Manager of Carbon Solution at EcoVadis, highlights the opportunity: “Our goal is to empower companies with insights and make it easier for them to access primary supplier data exactly where they conduct their Scope 3 calculations.”

According to the report, 53% of businesses plan to expand their ESG technology within the next year. The aim is to move away from limited disclosure tools and invest in platforms capable of supporting large-scale regulatory and operational demands.

The conclusion of the report points to one overarching theme: sustainability is no longer a side issue. It is a structural requirement. As EcoVadis puts it: “Resilience is the future of sustainability.”