In this session from Third Partners, we explore the critical shift in corporate sustainability as we navigate the volatile landscape of 2026. For business leaders, the era of ESG and sustainability vanity projects is officially over; sustainability has evolved from a marketing story into a critical operating system where companies are scrutinized on actual performance rather than vague 2030 promises. Drawing on insights from Third Partners co-founder Adam Freedgood, we discuss the growing phenomenon of greenhushing. In response to a federal landscape described as a disaster for science—where climate experts have been labeled "environmental insurrectionists"—leaders are silencing public messaging while working harder than ever to future-proof operations against physical risks like floods and wildfires. We examine the friction between federal deregulation and the gauntlet of state-level mandates and global standards, which effectively position U.S. companies as rule-takers complying with a soup of stakeholder-led directives, including stricter European standards. The discussion also tackles the double-edged sword of Artificial Intelligence. While AI offers efficiency for data analytics and reporting, it poses significant environmental challenges. According to a recent Guardian article, the U.S. is leading a record global surge in gas-fired power driven by AI demands, risking the hard-wiring of decades of pollution to meet energy needs. Finally, we look at the rise of Fractional CSOs as a flexible solution for navigating supply chain complexity and the strategic pivot toward the notion of Shared Value. This episode offers a roadmap for resilience, urging executives to look past the ESG label and focus on operational realities.

We explore the environmental sustainability of Artificial Intelligence (AI), focusing on Generative AI (GenAI) such as Large Language Models (LLMs). As GenAI matures along the typical "hype cycle" for emerging technologies, new challenges and benefits will emerge. But let's not lose sight of the big picture -- the future of AI's environmental impact isn't about acute environmental impacts, but rather how the AI-driven economy will compare in sustainability to the traditional one. We must acknowledge AI's dual potential for both societal decay and advancement. To explore the issues, we dive into the evolving environmental impact of GenAI over time, drawing parallels with previous technologies, including the early Internet. Finally, we have a Q&A on AI's influence on electricity usage and corporate carbon footprints. Are the energy impacts of AI overblown? Could AI potentially lead to energy savings in other areas? Forward-thinking business leaders will consider the broader business model and ethical implications of AI. When we talk about a sustainable future, we must think bigger than immediate carbon and energy impacts.

This week, we're digging into the energy transition and what it means for businesses, especially mid-market manufacturers and brands.

This podcast highlights that while the clean energy transition is undeniably accelerating globally, with huge growth in renewables, it's also facing significant challenges – think geopolitical shifts, economic volatility, and tricky, fragmented regulations.

For companies, ESG, or Environmental, Social, and Governance factors, are now central to strategy, but mid-market firms are particularly squeezed; they feel customer demand and regulatory pressure but often lack the resources of giants. Navigating this means tackling immense physical realities, from scaling up electric vehicles and heat pumps to managing grid capacity and finding critical minerals. The key takeaway? Despite political noise and complexities, inaction has a rising cost.

Companies are finding they must adapt strategically, focusing on what genuinely impacts their business value, managing risks, ensuring compliance with mandates (especially international and state-level) and investing in data. It's a call for pragmatic, evidence-based action.

Sources for this piece include: Original analysis by Third Partners, "5 things to know about the energy transition in 2025," by IMD.org, and "Ten physical realities the energy transition must tackle," by McKinsey Global Institute.

Who will pay for the electrical capacity to meet AI's insatiable demands? This was a hot topic in DC at the Better Buildings, Better Plants Summit hosted by the U.S. Department of Energy. Adam Freedgood, Principal and Co-Founder of Third Partners, a leading sustainability consultancy, was on the ground.

Freedgood shares what he heard, starting with insights on how U.S. energy policy, and the new administration's fossil fuel oriented goals, are clashing with the economic realities and sustainability-forward ambitions cases of American manufacturers and businesses.

The summit was a positive, productive gathering of building energy professionals, scientists, engineers, corporate sustainability directors, city managers, real estate portfolio managers, and other stakeholders in the clean energy economy.

Attendees shared strategies for successfully implementing advanced energy technologies that reduce operating costs and achieve sustainability goals, such as reducing GHG emissions.

For more information on how the U.S. DOE partners with businesses, visit their website at: https://betterbuildingssolutioncenter.energy.gov/better-plants

At the current moment of economic, political, and social volatility, business leaders need more effective tools to focus their corporate sustainability strategies. Facing federal regulatory uncertainty and attacks on all kinds of progressive social and environmental goals, companies have a significant opportunity to lead. Yet conventional ESG and sustainability frameworks are overly focused on reporting and insufficient in driving tangible action and positive impact. "Creating Shared Value" (CSV) is a concept that offers a more action-oriented approach. The concept was first introduced in 2006 by Michael Porter of Harvard Business School and Mark Kramer of FSG. It helps companies align business success while addressing pressing societal needs. This approach can provide a fresh path forward when traditional methods feel inadequate.

We wrap up by featuring 3 actual examples of businesses that are integrating shared value principles into their activities. In a short-term (quick win) example, craft breweries throughout North Carolina leveraged their operations and supply chains to provide emergency aid to local communities in the aftermath of Hurricane Helene. In a longer-term business-integrated example, we highlight Dove soap (a Unilever brand). For over 20 years Dove has integrated positive body image and self-esteem into the core of its brand. Recently, they've refreshed their approach to focus on new threats posed by AI generated images in beauty advertising. And finally, an example of a business that has fully integrated shared value into its mission and operations, from raw material sourcing to consumer experience. The story of Kahawa 1893, a coffee brand that sources directly from women farmers in Africa, pays higher prices for specialty coffee, and matches tips from customers to further support the farmers and their communities.

This briefing summarizes key themes and insights from an EHS Today article published in March 2025, written by Adam Freedgood, a sustainability consultant and co-founder at Third Partners. Freedgood analyzes the evolving intersection of Environmental, Health, and Safety (EHS) functions with Environmental, Social, and Governance (ESG) and corporate sustainability. The article highlights the significant impact of a new federal administration's reversal of certain ESG initiatives and the resulting volatility in the political, policy, and economic climates. It emphasizes the crucial role of EHS professionals in navigating this uncertainty, proactively managing risks, and identifying opportunities related to energy management, circularity, decarbonization, climate risks, supply chain sustainability, pollution reduction, and DEI. Freedgood underscores the importance for companies to reprioritize their sustainability efforts to focus on creating "shared value" by aligning societal needs, company capabilities, and corporate purpose.