Report: Companies Maintaining Sustainability Budgets Despite Trade Disruptions

Core Insights - Companies are maintaining or increasing their sustainability budgets despite challenges from tariffs and supply chain disruptions [1][2] Group 1: Sustainability Budgets - Nearly 95% of responsible sourcing professionals reported that their sustainability and risk management budgets are either being maintained (39%) or increased (56%) for 2026 [2] - Companies are still investing in sustainability, but only 24% expressed high confidence in their ability to identify risks to these efforts [3] Group 2: Compliance Challenges - Over half of businesses (54%) faced penalties or fines for responsible sourcing violations in the past year, indicating stricter regulations and increased supply chain disruptions [3] - Key challenges identified include tariffs (47%) and poor data quality (49%), along with limited resources to address changing immigration policies and civil unrest [4] Group 3: Geopolitical Impact - The survey was conducted before the conflict with Iran, which has already affected supply chains, particularly in the Strait of Hormuz [5] - Ongoing global conflicts are reshaping supply chains, necessitating a proactive approach to risk management and due diligence [6]