In 2025, businesses are increasingly recognizing the critical role of human capital social sustainability in driving long-term success. Kanata Advisors have built “The state of sustainable business” gathering insights from over 100 consulting firms, academic studies, market research firms, global surveys, and company reports.
The document includes the growing emphasis on employee health, diversity, and sustainable supply chain management. These priorities are not just ethical imperatives but also strategic drivers of financial performance.
Employee health and wellbeing: A top priority for sustainable growth
Employee health and wellbeing has emerged as the leading sustainability focus area for companies in 2025, with 40% of surveyed CFOs prioritizing it. This trend reflects a broader shift toward recognizing that a healthy workforce is foundational to productivity, retention, and overall business resilience.
Organizations like Deloitte have quantified the impact in their last human capital trends report, finding that companies prioritizing human sustainability report a 2.2% higher five-year return on equity (ROE). This underscores the tangible financial benefits of investing in employee wellbeing.
The rise of diversity initiatives
Despite the current noise, DEI commitments are growing significantly, with more companies planning to implement measures over the next five years. World Economic Forum reveals a material increase in diversity adoption since 2022:
- 51% of employers now plan to train managers and staff on diversity (up from 27% in 2022).
- 42% are setting goals, targets, or quotas to drive accountability (up from 22% in 2022).
Firms like J.P. Morgan and Moody’s have drawn links between diversity performance and financial outcomes, reinforcing the business case for these initiatives.
Sustainable supply chain and workplace safety
Beyond sustainable product development and cost reduction, sustainable supply chain management (34%) and workplace safety (28%) are critical focus areas. Companies are increasingly scrutinizing their supply chains for ethical labor practices and environmental impact, while also ensuring safe working conditions to mitigate risks and enhance operational efficiency.
Read more on how Denominator can help you strengthening the impact of the entire value chain. Measure the social performance of global suppliers, analyzing spending, and
leverage insights in supply chain diversity programs globally.
Conclusion: Integrating social sustainability into corporate strategy
As businesses navigate disruption and evolving stakeholder expectations, human capital social sustainability is no longer optional, it’s a competitive advantage.
By embedding these principles into their operations, organizations can achieve sustainable growth, mitigate risks, and unlock new opportunities in an increasingly complex global economy.
Contact us to discover how we can support your social sustainability and human capital work.
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