Financial performance and sustainability credentials are positively related across leading North American companies, according to the Center for Sustainability and Excellence’s (CSE) 2026 Annual Research.
CSE analyzed 210 of the most profitable FT 500 companies across 21 sectors and found that 72% of these companies held medium to high environmental, social, and governance (ESG) ratings.
The findings indicate that integrating robust business ESG structures is not just burdensome compliance, but that it can significantly boost the bottom line.
GHG emissions, energy and water use, waste management, biodiversity and product sustainability are all regularly reported on by ESG leaders. Social governance issues, including DEI, cybersecurity and ethical business conduct are also prioritized, says CSE.
By sector, the top performers are energy and business services companies, while apparel and wholesale businesses are comparative laggards.
But there are signs of positive change even in these areas, with the latest sustainable fashion statistics showing that two thirds (66%) of consumers are already making fashion purchase decisions with sustainability in mind.
CSE reported that the number of companies adopting various ESG standards grew year-on-year. Climate targets were a particular area of increased activity over the last 12 months: 35% of the companies analyzed set short-term climate targets last year, compared to just 21% in 2024.
“Sustainability now defines how companies grow, manage risk, and build trust,” said CSE President Nikos Avlonas.
“Organizations that embed sustainability into strategy outperform those that delay, financially and operationally.”
CSE’s findings echo recent research results shared by Japanese academics, which evidenced a positive correlation between strong market performance and ESG scores in Japan.
