3 Business Sustainability Trends in 2026

The Circular Economy

Circular economies are highly effective ways to reduce the amount of waste a company creates over its lifetime. Products are built to last, but when they do eventually start to fall apart, users can return them to the manufacturer via mail or drop boxes.

Staff will then deconstruct the used items into their base materials, which can be repurposed as new offerings or disposed of properly. By doing so, the brand reduces the need for virgin materials and avoids contributing to landfills.

One major name trying this trend is Coach. In April 2023, it launched its sub-brand Coachtopia, which takes what would be waste products and turns them into fashionable handbags. For example, the patchwork Ergo bag is made from leather scraps not large enough for other designs. It also offers robust repair services and will accept returns of all its products.

Coach management noted that the business added 1.2 million buyers in North America in fiscal year 2025. Two-thirds of those were Gen Z and millennials, who often identify as sustainable buyers demanding genuine environmental action. If more companies follow suit, there could be a 40% drop in greenhouse gas emissions by 2050.

 Data Transparency

Transparency is also becoming a critical factor. Environmental, Social, and Governance (ESG) criteria are important for following government regulations and proving to consumers that claims are genuine. On the legislative side, noncompliance can result in fines and legal fees for an enterprise.

Many stakeholders also now use ESG ratings to inform their investment decisions, while 92% of customers trust these companies more. Another 85% are making greener choices than they were in 2019. In addition, employees say they prefer working in these environments.

On top of opening themselves up to a broader market, entities report sustainable practices helping them use resources more efficiently, lowering energy use, and decreasing waste. Those benefits can reduce manufacturing costs and increase revenue.

However, to access these advantages, businesses need to track their processes and publish the resulting data so outside parties can see the proof of their work. By being transparent, consumers and investors know they can trust ESG claims. Thus, more have started using enterprise resource planning systems to monitor emissions, waste creation, and water use, set targets, and report their results.

Ethical Supply Chains With Proof

Many shoppers also want to know where an item’s components came from and how they got to stores. From coffee beans to computer parts, people are demanding evidence of ethical sourcing and a smaller logistical carbon footprint so they can stick to their values when buying or investing.

To showcase that commitment, companies can assign their creations a digital product passport. These aren’t required everywhere, but the European Union requires them to inform the public about an item’s origins, components, impact, and end-of-life recommendations. The passport tracks movements throughout its creation and use, so customers gain full clarity on the environmental impact it has.

Nike offers an excellent example of transitioning to an ethical supply chain. This massive sportswear manufacturer was heavily criticized in the 1980s for its use of sweatshops to create items. Particularly, people objected to its outsourcing to countries where workers experience poor conditions and are paid poverty wages. In 1997, buyers even boycotted the brand over concerns about child labor, which significantly impacted its profits.

The next year, Nike started making massive changes when cofounder Phil Knight acknowledged the malpractices the company had become associated with. He asserted that customers didn’t want to buy products made in abusive conditions.

Since 2005, the business has published reports on working conditions and wages for its staff. These changes have enabled it to generate $44.5 billion in revenue in 2021 while ranking 13th in Gartner’s top 25 supply chains in 2022.

The Business World Looks Bright in 2026

Although many people consider consumerism wasteful, companies are seeking to alter that perception. Ethical supply chains, data transparency, and circular economies are just three of the trends helping them achieve that goal. More manufacturers are expected to adopt similar principles in 2026 to appeal to shoppers’ desires for a more eco-conscious market.