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Foreword
In 2025, amid the backlash against sustainability and regulatory backtracking in some regions, you could be forgiven for thinking that companies would slow their sustainability journeys, or even abandon them. I don't mind admitting that I too anticipated that many firms might feel a sense of relief and focus their efforts elsewhere.
Yet the truth is very different for mid-market companies. Almost 9 in 10 say they will maintain or increase their investments in sustainability initiatives over the next 12 months.
South Africa Overview
South African mid-market firms remain strongly committed to sustainability, with 76.1% planning to maintain or increase investment in 2025 , well above the African average. For many, sustainability is less about compliance and more about building resilience, attracting investors, and securing their long-term licence to operate. Priorities such as renewable energy, water, and supply chain stability reflect the country's realities. While cost remains a key barrier, the determination to act shows that South African businesses see sustainability as integral to growth and competitiveness. These findings highlight five clear themes: Five key themes define this outlook:
1. Strong commitment despite uncertainty:
South African firms remain resilient, with two-thirds 67% committed to sustainability regardless of regulatory or political shifts.
2. Commercial benefits outweigh compliance:
Businesses increasingly link sustainability to profitability, revenue growth, and especially investor attraction, not just a compliance issue, where South Africa ranks highest globally.
3. Local investment priorities: Renewable energy, waste management, and water security top the agenda, shaped by pressing infrastructure and resource challenges.
4. Values-led drivers: Brand reputation and business purpose carry more weight than market competition, showing that firms are embedding sustainability in their identity.
5. Practical barriers: Capital costs and regulatory burden are the main obstacles, with political uncertainty less of a concern than in other African markets.
Together, these themes underscore a pragmatic yet forward-looking approach, South African businesses are clear-eyed about their constraints, but they also recognise sustainability as fundamental to their long-term resilience and growth.
Sumaya Jaffer
Associate Director,
Sustainability,
SNG Grant Thornton
Chapter 1: Sustainability – the path to growth
As 2025 began, there was growing concern that corporate sustainability was under threat. Geopolitical tensions, a difficult financial climate and energy insecurity were leading to a resurgence of economic nationalism, a favouring of fossil fuels and a rollback of green policies and regulations. Only 17.0% of UN Sustainable Development Goal targets were on track to be met.1
Despite this backdrop, our research shows that almost nine in ten 85.9% mid-market firms intend to increase or maintain their investment in sustainability this year. In South Africa, this commitment is even more pronounced, with over three-quarters 76.1% of firms planning to boost their investment compared to 50.5% across Africa, driven by stronger regulation, investor pressure, and greater corporate readiness.
Investment intentions in sustainable initiatives
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