The University of Cambridge’s Institute for Sustainability Leadership (CISL) released Competing in the Age of Disruption (April 2025), which is a follow-up to CISL’s 2024 report, Survival of the Fittest: From ESG to Competitive Sustainability. The 2024 report makes the case for why it is in the private sector’s own interests to accelerate market-wide transition, and to innovate and prepare to compete on a level playing field that rewards superior sustainability performance. The 2025 follow-up report sets out a pathway to achieve this ambition.
Human Level’s Take:
- A global industrial and economic transformation is underway - reshaping how we produce, consume and create value. This shift is being driven by non-negotiable forces: the laws of nature and planetary boundaries. Without deliberate action, the world faces a disorderly decline, marked by crises, state intervention and economic instability.
- But the opportunity is just as great. The market for sustainable solutions is projected to be worth trillions - rewarding those who lead in clean technology, resource efficiency and low-carbon business models.
- Progress is stalling. In some Western economies, momentum has slowed—or even reversed. Powerful political resistance, short-term thinking, and business complacency are dragging change off course. Many companies are focused on short-term costs and making only incremental changes, hoping to ‘catch up’ later. This is compounded by a lack of citizen trust, the disruptive nature of change, and fragmented, often tokenistic efforts.
- This delay is risky for business. Businesses now face existential threats on two fronts: system-wide instability if the transition fails, and competitive displacement if it accelerates faster than they can respond. But there is still time to lead. Markets evolve rapidly when public support, innovation and policy align. Those who act now can shape the new rules, influence capital flows, and secure early-mover advantage.
- CISL outlines six urgent priorities for business: 1) shift mindsets from compliance and incrementalism to transformation, value and competition; 2) move beyond ESG box-ticking and redirect efforts towards market-wide impact; 3) prepare for transformation by embedding strategic foresight and ownership of the transition at board level; 4) scale disruptive technologies; 5) engage in strategic policy advocacy that builds fair, future-fit markets; and 6) mobilise industry coalitions, align lobbying with long-term value and win the public debate. By 2035, sustainable industries will dominate the global economy. The choice for business is clear: lead the transition - or be left behind by it.
Some key takeaways:
- The direction of travel: A global industrial and economic transformation is underway—redefining how economies produce, consume, and create value. This transition is being driven by non-negotiable forces: the laws of nature and the limits of planetary boundaries. Without deliberate efforts to accelerate this shift, we risk unmanaged decline, characterised by escalating crises, abrupt state interventions, and growing threats to economic stability and open markets. For businesses, the financial stakes are considerable. They face existential risk from two directions: systemic instability if the transition fails to scale, and competitive displacement if it advances more rapidly than they can respond. Yet the opportunities are equally substantial. The market for sustainable solutions is projected to be worth trillions - offering major rewards to those who lead in clean technology, resource efficiency, and resilient, low-carbon business models. The private sector has a critical role to play - not only in managing risk but in reshaping markets and influencing the rules that govern them. As the report outlines, those who act now to accelerate the transition will secure a powerful early-mover advantage, set future standards, and help shape the direction of policy and capital flows.
- Progress is stalling but market-driven change is possible: Despite the compelling business case, investor and economic case for accelerating the transition, support for change has stalled and, in some Western economies, retreated. This slowdown is driven by several reasons: 1) an active opposition, which is driven by a powerful coalition closely aligned with the current US administration, working to stall progress; 2) inertia and complacency from businesses and politicians who are focused on the immediate costs of the transition while ignoring the far greater costs of inaction. Those who do act often make incremental adjustments instead of preparing for necessary, deeper shifts, and many believe that that they will be able to ‘catch up’ when the market does shift. This is a high-risk strategy given the evidence of past disruptions; 3) a lack of trust and engagement from citizens, with many failing to support action on climate, nature and inequality due to, in part, fears of threats to their rights, freedoms and livelihoods; 4) complexity and competing priorities. Reforming economic fundamentals is disruptive – it creates winners and losers, affects jobs and supply chains, and forces near-term adjustments; and 5) fragmentation and flawed approaches, driven by competing agendas, lack of accountability resulting in greenwashing, internal rivalry and a fixation on technicalities over progress. This fragmented approach weakens momentum, leaving space for opponents to stall progress and control the narrative. However, history has shown us that markets reshape, industries transition, and change happens faster than expected when the right incentives, technologies and public support align.
- Six key priorities to accelerate the market-wide transition: The report outlines six key priorities for the private sector to adopt in order to accelerate the market-wide transition. These are: 1) shift mindset from compliance and incrementalism to value, competition and transformation; 2) escape the ESG trap by ending tokenistic, reputational and defensive actions and redirecting effort towards market-wide impact; 3) prepare for transformation and competition by embedding strategic foresight, leadership alignment and board-level ownership of the transition; 4) innovate to create and protect value by scaling disruptive technologies, shaping demand and triggering tipping points; 5) change the rules of the game through strategic policy advocacy that dismantles barriers and builds fair, future-fit markets; and 6) build momentum for change by mobilising industry coalitions, aligning lobbying with long-term value and winning the public debate. By 2035, sustainable industries - from energy to finance to food production - are likely to be the dominant forces in global markets. This is not speculative but reflects the innovation, investment and competitive pressure already shaping the global economy. The report issues a call to action: at this historic moment of geopolitical and economic transformation, the question for businesses is whether they will step up to shape the future - or be shaped by it.
