At a GRESB event last year, a speaker made a simple but powerful observation: ESG is irrelevant in the short term, but critical in the long term. It’s a statement that sticks with you, because it’s true! Sustainability doesn’t deliver quarterly wins. Its value lies in the risks you avoid over the decades, not the returns you report next month.

So why do we still focus on the short-term gain?

Published: 11-May-2026

The Short-term Illusion

Sustainability efforts rarely show immediate results. Like planting a tree of building a new habit, the impact compounds over time. You won’t see the difference tomorrow, next quarter or even next year. But that doesn’t mean nothing is happening.

The effects, both positive or negative, accumulate. And so do the risks.

The Long-Term Reality

The real power of ESG lies in the risks it helps you avoid over time:

Regulatory shocks: New laws, like the EPBD or the EU Taxonomy, can blindside companies that haven’t prepared.
Reputation crises: One governance failure can erase years of trust overnight.
Stranded assets: Buildings or technologies that don’t meet the future standards become liabilities.

Think of ESG as an insurance: You don’t see the value until you need is. And by then, it’s too late to buy.

The Ambidextrous Approach

The solution? Be ambidextrous. Successful companies don’t choose between short-term profits and long-term resilience; they pursue both!

Deliver today’s results.
And invest in tomorrow’s survival.

The companies that last aren’t the ones that win every quarter. They’re the ones that survive every decade.

Track for the Long Haul

Don’t expect sustainability actions to pay off in a few quarters. Track their impacts over the years, because the most meaningful changes are incremental, and the most critical risks are the ones you’ll never see coming.