C-suite leaders are feeling less pressure to ensure their supply chains are sustainable, according to operations transformation consultancy Argon & Co’s new research, Operations Outlook 2026, based on a survey of over 800 C-suite leaders.

The study found that 63% of C-suite leaders say the pressure to ensure their supply chains are sustainable has decreased in the last 12 months. The decline is even more pronounced in the luxury goods industry, where 77% report reduced pressure, alongside 70% in logistics.

In parallel, long-term ambition appears to be softening. Just under a quarter (22%) of C-suite leaders said that improving sustainability practices is a top strategic priority for the next five years, suggesting ESG may be slipping down long-term boardroom agendas as companies navigate economic uncertainty, ongoing cost pressures, and shifting regulatory requirements – particularly following the corporate due diligence pullback in the United States, and in Europe under the Omnibus package.

Judith Richardson, Associate Partner at Argon & Co, comments: “The pendulum has swung hard on ESG in the past year, and it’s especially significant that this five-year horizon now coincides with 2030, a critical interim milestone for many ESG commitments, like the UN Race to Zero.”

 “The issues that need to be tackled are notoriously difficult – such as ensuring responsible labour practices in multi-tier global supply chains, or truly reducing Scope 3 value chain emissions. With acute pressures facing supply chains, such as spiralling operational costs and a challenging economic outlook, it can be tempting for firms redirect investment elsewhere.”

Despite this, the research shows organisations have not stepped away from ESG altogether, particularly where measurement and reporting capability is concerned. More than three-quarters (77%) of C-suite leaders say their organisation is still investing sufficiently in technologies to track and reduce Scope 3 emissions, suggesting that C-suite leaders remain focused on measurable value chain decarbonisation. In Operations Outlook 2025, this figure stood at 81%, indicating only a modest pullback despite significant regulatory changes in Europe and the US.

Confidence in compliance also remains strong, as another three-quarters (75%) say that, in their organisation’s current state, meeting Scope 3 regulatory requirements feels well within reach – potentially reflecting both improved internal capabilities and a softening regulatory landscape.

 “ESG is being reframed rather than abandoned. Some firms are talking about it differently, opting for terms like ‘corporate resilience, ‘responsible business’, or ‘risk management’, while others are moving beyond compliance-led reporting to understanding the environmental impacts that matter most in their value chains Many have also already started embedding the systems, data capabilities, and governance needed to manage Scope 3 effectively, which is vital to meet 2030 goals,” Richardson added.

“The worry now is that progress on supply chain sustainability stalls. Growing climate-related risks for firms mean that sustainability must remain a core operational discipline, rather than a knee-jerk response to regulatory or reputational pressure.”

Additional data and insights can be found in Operations Outlook 2026: https://www.argonandco.com/en/news-insights/whitepapers/operations-outlook-2026/

 

About Operations Outlook 2026

 This report is Argon & Co’s second annual Operations Outlook research report. In October 2025, Argon & Co surveyed more than 800 C-suite leaders across the United Kingdom (UK), France, Germany, the United States (US), Canada, Mexico, Australia, India, China, and the United Arab Emirates (UAE).

 Those surveyed span 12 industries: retail, life sciences, logistics, fashion, luxury goods, automotive, consumer goods, food and drink, industrial and chemicals, energy and utilities, financial services, and aerospace. The splits between the industries are equal.

 About Argon & Co

 Argon & Co is a global management consultancy that specialises in operations strategy and transformation. Its expertise spans supply chain planning, manufacturing, logistics, procurement, finance, and shared services, working together with clients to transform their businesses and generate real change. Its people are engaging to work with and trusted by clients to get the job done.  

It has 17 offices across Europe, Australasia, America, Asia and the Middle East. www.argonandco.com