More than two in five business representatives say their firm has strengthened their commitments to environmental, social and governance (ESG) improvements in response to heightened political scrutiny of such pledges under Donald Trump’s administration in the US.

The findings have emerged in C&E’s Advisory’s latest annual corporate non-profit partnerships barometer.

This found that only a small number of proportions of British firms (6%) are reporting reductions in ESG commitments due “to the growing political rhetoric on this topic”.

C&E added that instead of reducing environmental and social commitments “many organisations are adjusting how they communicate on ESG or responsible business-related matters - reframing their language or softening tone without changing intent”.

“This suggests a degree of resilience, with organisations refining their approach rather than stepping back” from ESG.

C&E chief executive Manny Amadi said: “The 2025 Barometer underscores the remarkable resilience and adaptability of cross-sector partnerships, even amid political and economic headwinds.”

'Growing disconnect' with charity partners

But despite firms bolstering and refining their ESG commitments the proportion of businesses saying that linking up with charities has changed their environmental, social and governance (ESG) practices for the better is declining.

While last year more than three in four corporates say their partnership with charities had helped them improve, this has dipped to just over two in three this year.

Also, earlier this year a report had suggested that businesses' European ESG commitments had slumped.

The analysis released in the US by financial research firm Morningstar found that Europe suffered its first slump in ESG investments since 2018, of £900m during the first quarter of the year.

AI to be more significant

Another finding from the report is that Artificial Intelligence (AI) is set to become more important to charities and corporate partnerships. Half of firms and a third of charities are now using the technology in their link ups “with expectations of significant future impact”, according to C&E.

The technology is being used most in research, impact and reporting, delivery, policy change and partner selection.

“Organisations are finding innovative ways to maintain momentum, leveraging technology like AI and refining their approaches to drive lasting impact,” added Amadi.

Most admired corporate charity partnerships

C&E’s report also reveals the most admired corporate and charity partnerships.

As with last two years the most admired is Tesco’s link up on health issues with Cancer Research IK, British Heart Foundation and Diabetes UK.

“The partnership is recognised for its long-term commitment to health awareness and fundraising,” said C&E.

Tesco chief executive Ashwin Prasad added: “Working with our partners across the Tesco Health Charity Partnership since 2018 has been critical to helping tackle the biggest health challenges the country faces.

“We are honoured that our work with Cancer Research UK, British Heart Foundation and Diabetes UK has been voted the most admired partnership for the third year in a row by peers across the sustainability and non-profit industries.

“With strong collaboration across our organisations, we are always striving to improve the health of the nation, raise awareness with our vital campaigns which are able to reach millions, and bring real change by influencing government policy.”

Sky Bet’s link up with British Heart Foundation partnership was voted runner-up “reflecting strong appreciation for its national reach and public engagement”.

The Tesco’s link up with WWF and HSBC’s with Shelter took joint third place.

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