A quiet shift is happening in the industry. ESG, once a nice-to-have or a side project, is fast becoming a non-negotiable - not just for brands, but for the agencies that serve them.

This was evident at this year’s Cannes Lions, where sustainability reassuringly gained more ground, with more than double the number of sessions focused on environmental responsibility than last year. From a dedicated LIONS Sustainability Hub to the launch of the UN’s CMO Blueprint for Sustainable Growth, the message was clear: brands are being held to a higher standard, and they’re working hard (albeit quietly) to get their houses in order.

For agencies, this means our clients are no longer asking if you care about your environmental and social impact. They’re asking for the receipts. 

And those receipts are being standardised. In the last 12 months, we’ve seen the implementation of the Global Sustainability Measurement Framework (GSMF), the Corporate Sustainability Reporting Directive (CSRD) and new B Corp standards. CSRD in particular is already transforming how brands report on sustainability across Europe. Agencies may not fall under mandatory compliance just yet, but our clients do, and they’re passing on those obligations. 

Unsurprisingly, we’re now seeing more ESG requirements show up in RFPs. Agencies are being scored on emissions data, DE&I progress, and governance frameworks alongside their strategic and creative credentials. 

If CSRD is the legal lever, B Corp is the cultural one. The tougher standards from B Lab require companies to meet more rigorous benchmarks to engage teams across seven new impact areas, from Climate Action to JEDI (Justice, Equity, Diversity and Inclusion), and to show both year-on-year progress and clear longer-term goals. Another signal that the trend is accountability, not optics. This shift from theory to impact is long overdue and a meaningful antidote to greenwashing and hushing. 

While European policy is tightening, the story in the U.S. is playing out differently. Faced with political pushback and legal scrutiny, many companies have scaled back their public commitments to JEDI initiatives. Understandably, this is creating growing tension within multinational organisations, where EMEA teams are pushing ahead, while U.S. teams are pausing for thought. This was felt in Cannes with a notable reduction in inclusion-led campaigns and conversations versus 2024’s festival. 

For agencies, this means navigating an increasingly complex landscape while ESG expectations are rising and diverging. And that makes it even more critical to understand the nuance when working with global clients, especially through procurement teams juggling competing regional priorities.

For years, purpose-led campaigns and performative DE&I web pages were enough to signal the values to select progressive partners. But the industry’s moved on. Clients want systems, not slogans. Policies, not platitudes.

But it’s not just clients. It’s talent, too. According to Deloitte’s 2025 Gen Z and Millennial Survey, 41% of Gen Zs say they’ve rejected a potential employer based on personal ethics or beliefs, and nearly a quarter (23%) have researched a company’s environmental impact or policies before accepting a role. For agencies competing for top talent, ESG isn’t just about doing the right thing and delivering what clients need and want - it’s about attracting and retaining the best people to produce the best work.

This is a significant shift from the status quo. It isn’t some future-facing scenario. This is today. GSMF is real, CSRD reporting is live. B Corp standards have changed. 

Croud has been accredited by EcoVardis since 2020 and Born Social certified as a B Corp in 2022. Since then, client requests for emissions data, sustainability policy disclosures, and supply chain ethics have surged. And despite being relatively ahead compared to most, ESG progress is a shared high priority as we collectively work toward global B Corp Certification this year. We know progress is essential, and we must not get distracted. 

ESG has been treated as a side project for too long. This year, it’s core to commercial strategy. If you’re not already embedding sustainability, DE&I, and good governance into your core operations and approach to leadership, you’re already behind and starting to lose out.

Agencies ahead of this shift, with credible plans, committed to transparency and able to report real action and results, will win the hearts (and contracts) of talent and clients. Those that don’t will lose briefs before they’ve even been read. 

The question is no longer whether ESG matters. It’s whether you’re built for it.