In recent years, sustainability has taken center stage. Driven by environmental and social pressure, regulatory demands, and a genuine desire to do better, the corporate world has made significant strides in integrating environmental and social practices into its strategies. Never before have we talked so much about ESG, decarbonization, diversity, and purpose.
However, recent events remind us that sustainability, when not built on solid foundations, can be blown away by the first strong wind. And that's where Donald Trump comes in.
With the former U.S. president back in the political spotlight—and with him, a narrative that downplays climate action and social inclusion—we are seeing a shift in tone among several companies. Some are rolling back environmental commitments. Others are becoming more cautious around issues like diversity and equity, as if afraid of upsetting this new political and cultural tide.
And that's when the classic tale of the Three Little Pigs came to mind.
The first pig built his house out of straw—light, quick, and seemingly effective—but it was the first to collapse when the Big Bad Wolf came along. These are the companies that jumped on the sustainability bandwagon when it was trendy without making any real structural changes. A recent example is Anheuser-Busch (maker of Bud Light), which, after launching a campaign promoting diversity, quickly backtracked in the face of conservative backlash—trying to please everyone and ending up pleasing no one. Their house was made of straw.
The second pig chose wood—more solid, more stable—but still vulnerable. These are the wait-and-see companies. They still publish sustainability reports and keep ESG teams in place, but they're quietly scaling back their ambition, especially in politically sensitive markets like the U.S. Think of BlackRock: once a vocal advocate for sustainable investing, it has recently toned down its messaging in states where ESG has become politically controversial, avoiding phrases like "climate agenda."
Finally, the third pig built his house out of brick. Solid. Long-term. These are the companies where sustainability is truly embedded in the business model—not as a marketing campaign but as a source of competitive advantage. Sustainability is THE strategy. Take Patagonia, whose founder gave away the company to fight climate change. Or IKEA, which continues to invest heavily in renewable energy, circular materials, and social inclusion, regardless of political headwinds. In these cases, "sustainability" isn't even mentioned anymore—it's simply part of who they are.
True sustainability isn't a reaction to trends or political shifts. It's a foundational choice. And, as the story reminds us, that's what determines who stays standing when the winds begin to blow.
And contrary to the children's story, it is unlikely that the first two little pigs will find shelter in the third. Competition is competition.
Have a great and impactful week!
Nuno Moreira da Cruz
Dean of the Executive Education
CATÓLICA-LISBON