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      Executive understanding of sustainability, and its related risks and opportunities, is on the rise — in large part due to increasing regulation and mandatory reporting requirements.

      While some sectors have made more progress than others, sustainability risks and opportunities are not yet factored consistently into financial models and decision making in credible ways. As a result, sustainability programs can fail the business case test despite delivering a commercial return on investment when all factors are taken into account.

      Why is sustainability not yet integrated into financial models in a meaningful way? At KPMG, we believe it is because a commonly-accepted approach to translating the risks and opportunities into financial planning and enterprise value remains lacking. Quantification techniques, where they exist, are often fragmented and inconsistent.

      This report explores a critical issue facing organizations today: while sustainability is well understood at the executive level, it is not yet consistently reflected in financial decision making. Recent KPMG research shows that although most executives are familiar with their sustainability strategy, only a small proportion apply robust quantification methods to assess financial impact.

      This gap limits organizations’ ability to embed sustainability into capital allocation, valuation and strategic decision making.

      Michael Wagemans
      Michael Wagemans

      Partner, Head of Sustainability | Advisory

      KPMG in Belgium

      Also in Belgium, sustainability is moving closer to the core of business value generation. This much we learn from the results of the CSO survey that was conducted with sustainability & ESG leaders at domestic enterprises between February and April 2026.

      In the context of prevailing economic uncertainty, it is not surprising that business relevance is eclipsing impact considerations. More specifically, Belgian companies increasingly prioritize sustainability actions with tangible financial benefits, often through risk and resilience lenses. At the same time, several companies are re-evaluating their business models and are starting to re-frame sustainability as a growth opportunity (vs. a compliance or conventional risk issue).

      In Belgium, the majority of companies that profit from sustainability engage in a variety of business model elements, with most innovation targeted at product or service offerings, customer target segments, and value chain activities (e.g., packaging, energy use). Through our CSO survey, we know that sustainability and ESG leaders often struggle with the cost model underpinning these sustainable business model innovations.

      A better understanding of the business value levers linked to sustainability is therefore paramount. In collaboration with the World Business Council for Sustainable Development, KPMG in Belgium has developed a sustainable value creation framework that allows us to assess sustainability-related levers, such as waste minimization, value chain resilience, energy efficiency measures, which have the greatest potential for financial and commercial impact. Learn more in our report.

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      Closing the sustainability valuation gap

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