rom Donald Trump calling climate change the “greatest con job in history” at the UN tribune, to the EU watering down its ESRD policies, ESG themes are facing strong headwinds lately. Yet, the theme of this year’s NYC Climate Week was “Power On”, showing a strong will to move forward into concrete action. So is sustainability really slowing down or, on the contrary, coming to a new era of concrete realisations?

It is clear that the current worldwide political shift is difficult for ESG themes. The largest market in the world, the USA, is promoting fossil fuels, stopping their support to renewable energies and exiting all major sustainability-related treaties. The rise of populism in Europe is rolling back on social advancements. The political headwinds are serious.

Georg Kell sees this as “an explanation for the current green-hushing in company’s communications.” He tempers his statement: “But they are still doing the work as several factors on the ESG agenda continue to gain momentum. First, on the consumer side, or the value side in a wider sense, there is a continued shift towards more sustainable and healthy products and services. This is unstoppable, even in very polarized societies. Secondly, nature is not quiet anymore and it is forcing its way into the matter ». Indeed, we are starting to see price signals reflecting the impact of climate change. Think insurance and food supplies costs which are clear indicators of the materiality of ESG issues becoming very concrete. Georg Kell also mentions « the classic issues on sustainability, like brand protection, risk management, stakeholders’ engagement, which still hold value in business approaches and are deeply embedded in the DNA of many companies.”

According to the founder of the UN Global Compact, “there are contradictory signals with political and military threats, but social and geological proofs continue to make the case for sustainability. So, in my sense, the business case for sustainability is getting stronger, not weaker”

As the political landscape shifts, the emphasis should indeed be on securing companies’ operations and making them more resilient to ensure independency and reduce exposure.

Georg Kell, founder of the UN Global Compact

Iris Van der Veken goes further:“ In the 25 years I have been working on the ground in sustainability, I see a new ‘face’ of the approach that is connecting sustainability across all business functions, integrated into the business strategy. Whether you look at supply chains, procurement, talent management, social justice, nature & climate impact, sustainability has shifted to a business imperative. It is indeed all about business resilience.”

Numbers are here to support this. The 2025 UN Global Compact-Accenture CEO Study shows the trend: in 2007, 72% of CEOs prioritized brand and reputation outcomes. By 2022, 79% of CEOs saw a business case for at least one Sustainable Development Goals (SDG) of the UN, In 2025, 88% of CEOs believe the business case for sustainability is stronger today than five years ago. And 97% remain committed to the SDGs, however only 50% feel comfortable to speak out on sustainability. If you go beyond the noise, the case for sustainability is indeed getting stronger and deeper.

Iris Van der Veken, executive director and secretary general of the Watch & Jewellery Initiative 2030

Reconcile creating value for the company and the common good

If sustainability becomes inherent to all business departments, can value still be created for the company while it affects positively the common good? Can profit for a company also benefit the world? The question is not only philosophical. By definition, companies are supposed to create products and services that serve a need of society. Moreover, it should be clear by now that no company can strive with collapsing ecosystems and failing societies.

Georg Kell adds a time perspective to the issue: “In the short run, it is tempting for companies to exploit short term returns and overlook medium or long-term impacts on society. This is where the sustainability lens helps to focus more on the long term. No firm can survive over time if it neglects good environmental and social practices. This is the fundamental hypothesis many people forget. It is the necessary precondition for long-term success. And it creates positive benefits for society.”

But where does the luxury industry stand in regards to this postulate? The executive director and secretary general of the Watch & Jewellery Initiative 2030 explains: “From a sustainability standpoint, luxury has a great opportunity because their products are associated with heritage, excellence, exceptional craftsmanship, creativity and beauty, created for longevity. Add eco-innovation to the mix and the positive impact on society and nature is clear. In that sense, luxury is in a unique position to lead the way on sustainability and include all players, especially the SMEs across the value chain.”

Nicolas Freudiger, CEO and cofounder of ID Genève

The young watch brand ID Genève which launched in 2020 on sustainability claims, summarizes this approach well, as Nicolas Freudiger, co-founder and CEO, explains: “Sustainability is not a marketing layer for us — it is our business model. By developing materials such as solar-reprocessed steel, regenerative carbon and bio-based components, we create differentiation in a traditionnal luxury market. It strengthens brand equity, drives visibility, attracts long-term investors, and builds strategic partnerships that wouldn’t exist without our sustainability leadership. Ultimately, it turns responsibility into a competitive advantage.”

Another pioneer in the area is the 140 years old watch brand Breitling. Aurelia Figueroa, Chief Sustainability Officer, shares the brand’s vision: “For Breitling, sustainability has been a core brand value for years. It is both part of our own individual values, and a key pillar for the brand. From this conviction, it likewise contributes to shared value creation – for our customers, who buy far more than a watch, but also a coherent approach to craftsmanship that is considered across the value chain; for our employees who can contribute with purpose to their work; for our supply chain partners, with whom we engage to develop shared initiatives, and for local communities, with whom we work together to foster sustainable development.” This shows how sustainable values are created and shared across the whole value chain.

Nature as capital

According to the World Economic Forum, if natural ecosystems’ degradations continue on the current pace, it could destroy up to 26% of global GDP, even 75% in some sectors. Some reports estimate potential annual losses of $2.7 trillion by 2030 and others point to a potential loss of $58 trillion over the long term. These figures are based on the fact that over half of the world’s total GDP, or about $44 trillion, is moderately or highly dependent on nature.

As Iris Van der Veken puts it: “Companies should see nature as a capital that needs to be closely managed, as any financial one. So sustainable sourcing (and restoration of nature impacted), water stewardship, ecosystems preservation should be envisioned as capital management.”

She goes on to explain what the WJI 2030’s role is: “This is where the WJI 2030 comes in: first through multi-stakeholder engagement and education, secondly by offering practical tools to support companies of all sizes on the journey to implement and operationalize while aligning with evolving regulations and stakeholder expectations. This year we have worked on a Proof of Concept, which includes 9 practical case studies demonstrating the operationalization of our nature guidance into their actual business. Whether on climate, nature or inclusiveness, it is about brand equity as much as it is about access to capital, as investors are increasingly taking these dimensions into account.”

Georg Kell concurs: “Let’s not forget that avoiding big costs and reputational damages is also preserving value. You cannot forget the risk management dimension. Secondly, with purposeful, socially responsible talent management, you motivate your workforce, attract and retain talents. So there are obvious productivity gains there as well. Thirdly innovation is key for materials, to help reduce dependencies, build short material flows and preserve natural resources. This creates efficiency and cost gains. Fourthly is how companies translate this into brand building, embedding it into their DNA.”

The limited edition SDGs by ID Genève in partnership with the UN

Collaborations are key

As the scope of the issues at hand is global, no individual company can truly tackle them alone. This is where collaborations appear to be crucial. But considering the very competitive business model the world evolves in, how does the shift to a collaborative framework that benefits the larger good takes place?

Iris Van der Veken relates the question to what the Initiative is doing: “At the WJI 2030, we acknowledge the great work being done by any organisation across the watch and jewellery industry. We do not want to reinvent the wheel. We are here to build practical solutions that are scalable for the wider industry with a special focus on the SMEs community. We truly believe in partnerships. This is why we have put in place strategic collaborations with UN Global Compact, ESG Book, UN Women, Business for Nature and others. This is also why we invest so much time in multi-stakeholder consultation with civil society and the academic world among others to create the trusted ecosystem to deliver the value of collaboration.”

What it is about is recognizing the shared dependencies and risks all companies are facing. The secretary general adds: “In many sectors, firms that have taken this route are realizing that the pooling of risk and cost in ‘pre-competitive’ activities actually reduces barriers to scale, lowers duplicative investment, and accelerates learning.”

Georg Kell emphasizes the obviousness of this approach: “The business case for collaboration is blatant, because you share the risks and protect the common resources. But is it a delicate balancing act. The narrow self-interest and zero sum game approach pushes for competition, but if you recognize that the framework conditions affect us all, the case for collaboration becomes the only viable solution.”

Do luxury consumers really care?

When you take a step back and acknowledge the long term implications, a sustainable strategy seems like the sensible thing to do, both for a company and for the world. But do luxury consumers really care? The general consensus of studies seems to agree on this. According to the Bain & Company Luxury Study 2025, over 72 % of global luxury consumers under 35 say they consider a brand’s sustainability and social impact before purchasing.

Among Gen Z luxury buyers, that number climbs to almost 80 %. The BCG × Altagamma True-Luxury Global Consumer Insight (2024) found that two-thirds of consumers globally are willing to pay a 10–20 % premium for responsibly sourced or certified products — a figure that has doubled since 2019. In Asia, where new luxury growth is fastest, millennial and Gen Z consumers now drive 65 % of luxury purchases, and sustainability is ranked among their top three purchase drivers, along with design and brand heritage.

Iris Van der Veken is also convinced that “the luxury consumer of today and tomorrow expects exceptional craftsmanship, authenticity, traceability and purpose seamlessly woven into beauty and experience. Sustainability is no longer a niche preference; it’s a mark of modern luxury.”

She continues: “Luxury consumers are looking for integrity and proof. They want to know who made this, where it came from, and what impact it had on people and planet. Trust and Transparency are becoming the new currencies. This doesn’t mean sustainability replaces desirability; it deepens it. When a consumer knows their purchase contributes to positive change — restoring ecosystems, empowering artisans, investing in education — the emotional connection to that piece is multiplied.”

Still, for the moment, if you look at the sale side, sustainability does not seem to be a prime factor of a buyer’s decision for luxury products. Georg Kell looks at the big picture: “I have been looking into this question for 30 years. There are opposite forces at play here. On one hand, consumers want instant gratification, so they buy too much unnecessary goods and they throw them away without thinking about it. On the other hand, nowadays, they do not want to be associated with extremely negative news either. They do not want to support child labour or conflict diamonds or contribute to deforestation. The studies made on this topic show there is a gradual change, year by year, towards more health conscious, more sustainable products.”

He continues: “It is a slow-moving trend, a long-term shift, but it is happening. For luxury, I think the awareness of not being associated with these negative aspects is getting very powerful. So I am optimistic that we are entering a new era of sustainability. The markets are conveying clear signals that sustainability is materially relevant. It is already obvious for insurance and food costs. It shows that the impact of climate change is already so big, that markets are indeed adapting. Public opinions (and media) might still be in some sort of denial, but markets are not anymore and prices are a good aggregation of the level of impact.”

Pioneering watch brands now seem to consider sustainability as an integral part of the brand’s value and clients’ expectations. Nicolas Freudiger from ID Genève feels “customers are increasingly informed and expect luxury brands to take responsibility, not just communicate about it. They may first come for the design and exclusivity, but they stay — and advocate — because the product aligns with their values. Sustainability is not the sole driver, but it is a decisive one. It builds trust, loyalty, and a sense of belonging to a purposeful brand.”

Ilaria Resta, CEO of Audemars Piguet

Ilaria Resta, CEO of Audemars Piguet, celebrating its 150th anniversary this year, concurs: “Sustainability may not always be expressed by our clients as a direct requirement—but it is an implicit expectation. For us, it’s not an add-on; it’s continuity. It’s the foundation that ensures resilience, trust, and uncompromising quality for the future. This is why sustainability cannot be treated as optional. It is a fundamental condition for preserving excellence and securing the future of our company and all its stakeholders.”

Aurelia Figueroa at Breitling adds: “Sustainability might not be the primary sales argument, but it has become a decisive expectation. While customers may not necessarily choose a product because it’s sustainable, they may forgo a purchase if the brand is not. This is especially true for younger audiences, who increasingly look for responsible materials, transparency, and circular practices.” Overlooking ESG as just a “nice to have” approach might not cut it anymore.

A new definition of value

As the case for a sustainable approach to business is getting stronger and new values are emerging, are the current tools for evaluating a company or a product’s performance still relevant? Are new sets of KPIs needed to reflect this shift?

For the co-founder of the UN Global compact, Georg Kell, it is clear: “This is a fundamental question and there is no easy answer. But I deeply believe that unless there is a change of values, our current evaluation schemes will only reflect the old era of industrialisation, of scale and scope, of more is better, of extract, process, consume and discard. We know this model is not sustainable anymore. We need to rethink how we determine value.”

And it starts with new KPIs that measure, as precisely as possible, businesses’ impacts on nature and society. Georg Kell offers a very pragmatic approach: “You do not need 100 different KPIs. There must be one on GHG emissions and it has to be standardized, so the carbon market starts being efficient and impactful. Water and biodiversity also need to be clearly addressed and scaled with standardized measurements. On the social side, just go back to the basics of rediscovering what it means to truly respect each other: no discrimination, no child or forced labor. If companies really applied these principles, the world would already be a better place.”

Iris Van der Veken fully agrees on the need to transform the evaluation system: “The systems we’ve used to define success for the past century were built for a different world — one where quarterly earnings, volume, and short-term ROI were the ultimate scorecard. In 2025, that model is no longer sufficient. It tells us what a company earns, not what it costs — to the planet, to people, or to future generations. If we want to drive genuine transformation, we have to expand what we measure and reward. That’s why the conversation is shifting from ESG as reporting, to impact as performance.”

To be very concrete, she offers potential solutions: “In practical terms, companies will need to track a mix of forward-looking and outcome-based indicators that reflect sustainability as value creation. For example:

• For climate: absolute and intensity-based emissions reduction trajectories aligned with SBTi, progress on renewable energy sourcing, and percentage of low-carbon materials used.
• For nature: hectares restored, water use efficiency, biodiversity gains, and circular-material recovery rates.
• For people: living wage coverage, gender pay parity, training hours per employee, and representation of women in management and leadership positions across the value chain.
• For governance: board-level oversight of ESG, supply-chain transparency scores, and grievance redressal performance.”

Once again, luxury brands who are serious in their ESG approach fully agree and are implementing their own sets of new KPIs that link it to their global strategy. At Audemars Piguet, Ilaria Resta acknowledges the evolution: “We are evolving our approach to value creation by introducing sustainability-linked KPIs that go beyond financial metrics. Our focus is on measuring prosperity in a holistic sense—economic, environmental, and social. This includes indicators such as employee well-being, inclusivity, community engagement, and long-term societal impact.”

Aurelia Figueroa, Chief Sustainability Officer at Breitling

Likewise at Breitling, Aurelia Figueroa details what the brand has put in place: “Since 2021, we’ve added sustainability KPIs to look beyond financial results, starting with the publication of our first Sustainability Mission Report. These metrics cover all aspects of our products, from our supply chain and operations to our impact on communities globally. Some examples of these include the share of products with fully traceable gold and lab-grown diamonds under our Origins label, progress toward our carbon reduction targets, and supplier engagement. We also measure social impact, like education hours in sourcing communities, and circularity indicators such as reducing plastic waste. This helps us understand value in terms of nature, community, and brand trust —not just profit. Further to this, we have tied our performance on certain KPIs to a sustainability-linked loan. This means we benefit when we make progress—and face consequences if we don’t reach our ambitious targets.” When done right sustainability becomes a strong lever for value creation on many levels.

Breitling Lady Premier 32 mm with stainless steel bracelet and lab grown diamonds

The case for a shift towards a more sustainable business model seems clear, and new KPIs already exist to help foster the transformation. As the “Power On” theme of the 2025 NYC Climate Week made explicitly clear, now is the time for action, as future leaders will not only be judged solely on profit and growth, but also on purpose, resilience and regeneration.

As Iris Van der Veken summarizes: “Metrics alone aren’t enough; they need to reflect a deeper cultural shift in what we value. The key is to connect these KPIs directly to value drivers — risk reduction, brand trust, talent management, cost efficiency, and innovation potential. When sustainability metrics are tied to executive incentives and investor decision-making, they stop being decorative and become strategic. This is our mission at WJI 2030: with humility, to work hand in hand with other leading organisations to support the industry in realizing that beauty, craftmanship, innovation and sustainability can — and must — go hand in hand to create value for companies and the world.”