South African companies are extremely optimistic about making investments in sustainability initiatives over the next year, according to Grant Thornton’s latest sustainability report – Scaling sustainability: How the mid-market is future-proofing growth.
In fact, at a level of 67,1%, the country is ahead of most others surveyed by Grant Thornton including the US, UK, Australia, and others out of the 69 countries and sectors surveyed.
South Africa is just behind India, which has a positivity rate of 78.9%.
Overall, nearly nine in 10 (85,9%) mid-market businesses will maintain or increase their investment in sustainability in 2025 – despite political and regulatory rollbacks in key markets.
“The findings challenge the narrative that sustainability is losing momentum and instead positions the mid-market as a global force for long-term growth and resilience,” says Sumaya Jaffer, associate director, Sustainability at Grant Thornton.
This confidence is underpinned by long-term commercial belief. Nearly three in four (76,1%) South African businesses say they will maintain or increase sustainability investment, compared with just half across Africa. Strikingly, 76,2% also highlight sustainability as a key driver of investor attraction – the highest of any region worldwide.
Year on year, optimism has grown, with business owners’ confidence improving from 67,4% quarter on quarter, and 69,7% year-on-year. However, the country is off its peak of 79,1% in the third quarter of last year.
Even with recent political changes, just more than two-thirds of South African companies are confident in the current environment to remain committed to sustainability with no plans to change what they are doing.
This commitment is further underscored by data showing that 76,1% of South African businesses plan to maintain or increase their investment in sustainable initiatives – well above the African regional average of 50,5%.
“Many others (more than 30%) expressed confidence in the current political landscape and that it was more amenable to doing business,” says Jaffer.
While competition is now the leading global driver of sustainability investment, 19,3% of South African firms stand out for prioritising brand reputation and purpose of the business, and access to finance – higher in some areas than both the African and global averages, the study found, signalling a values-lead approach alongside commercial goals.
“For many, sustainability is less about compliance and more about building resilience, attracting investors, and securing their long-term licence to operate,” says Trent Gazzaway, global head service line capability and quality at Grant Thornton International. “Priorities such as renewable energy, water, and supply chain stability reflect the country’s realities. While cost remains a key barrier, the determination to act shows that South African businesses see sustainability as integral to growth and competitiveness.”
Half (54%) of businesses globally believe sustainability will increase long-term profitability, while 51,3% expect it to boost long-term revenues.
In South Africa, optimism is even stronger: 63,1% believe it will improve long-term profits; and 52,4% say it will increase long-term revenues. Additionally, 76,2% of South African firms say sustainability helps attract investors – a significant regional differentiator and the highest across all regions surveyed.
However, there are barriers to sustainable operations for South African companies – the biggest one being cost, followed by the volume of regulations and standards.
Specifically, 22,7% of South African respondents cited capital cost as the top barrier to developing sustainability initiatives, and 13,6% cited the volume of regulations and standards. Interestingly, political uncertainty was a bigger concern in other African countries (20,7%) than in South Africa where only 11,4% identified it as a major barrier.
“Given that companies see the overall environment in South Africa in a positive light when it comes to easing the regulatory conditions required to operate, we are optimistic that this will shift as more red tape is removed to make it easier for businesses to operate,” says Jaffer.
The Scaling Sustainability report draws on data from over 15 000 mid-market firms across 35 economies. It finds that not only are 85,9% of businesses actively investing in sustainability initiatives, but 54% believe these efforts will increase long-term profitability – and 51,3% expect a boost in long-term revenue.