Medium-sized companies are the new drivers of sustainability

“Around the world, we are experiencing that sustainability efforts are less about legal compliance and more about creating business and economic value, becoming drivers of market competition and increasing brand value. Leaders of mid-sized companies have recognized that ESG is not a cost, but an investment that simultaneously increases operational efficiency, strengthens employee engagement and opens doors to new markets”

– emphasized Dr. András Balásfalvi-Kiss, Partner, Head of Grant Thornton’s ESG and Sustainability Services business.

The Grant Thornton International Business Report (IBR) surveyed nearly 15,000 mid-market executives in 35 countries worldwide.

In 2025, 41.6% of companies cited staying ahead of their competitors and 38% citing reputation enhancement as their primary sustainability business goal – both factors are significantly stronger motivations than a year earlier.

The long-term business benefits are also tangible: more than half (54%) of mid-market companies believe sustainability will increase future profits, and 51.3% expect revenue growth.

According to the research results:

• 85.9% of medium-sized companies will maintain or increase their sustainability investments this year.
• Almost half of companies (49.8%

) believe that sustainability performance is key to entering international markets.

• 43.1%

believe that ESG directly improves their export opportunities.

• More than half of companies (54%) expect rising sales prices and stronger profitability as a result of sustainability investments.

“The specialty of medium-sized companies is that they are able to react quickly to market changes. It is now clear that those companies that proactively integrate sustainability into their strategy will have an advantage. This is important not only for regulatory compliance, but also because customers, investors and employees all expect it,” added Dr. Balásfalvi-Kiss András.

Where are the funds flowing?

The most popular area is renewable energy (43.5%), which is also strengthened by cost-effectiveness and tax considerations. In addition, the commitment to diversity and acceptance has also grown spectacularly: in the USA, for example, the proportion of medium-sized companies investing in such programs has jumped from 31% to 44.8%.

“The situation is partly similar in Hungary, the role of renewable energy is also very strong here, but climate adaptation is becoming increasingly important, and with the decrease in the prescribed leg of the legal reporting “obligation”, the importance of internal regulation (ethical rules, complaint reporting, supplier due diligence) is increasing,” adds Dr. Balásfalvi-Kiss András

Reporting: a business tool, not a hassle

Despite the changes in the regulatory environment – ​​including the EU CSRD relaxations – 72.9% of medium-sized companies continue to report on sustainability. 44.8% of these companies see transparency as valuable from a business perspective, and 35.9% consider it an integral part of their corporate mission.

“Companies that cannot demonstrate credible sustainability practices can jeopardize their key business relationships. This is not only about reputation, but also about staying in the supply chain”

– emphasized Dr. András Balásfalvi-Kiss.

It is also important to highlight the importance of collaboration: costs and complexity are common challenges. Collaboration with investors, industry players and customers makes it easier to develop viable, widely applicable.