ESG is evolving and becoming embedded in global trade operations

2026-02-05 · Source: Thomson Reuters Institute · Field: Business & Management — International Business & Trade, Operations & Process Management, Corporate Strategy & Leadership · Depth: Intermediate, medium

Summary

The Thomson Reuters Institute's 2026 Global Trade Report indicates that Environmental, Social, and Governance (ESG) efforts are increasingly operationalized within global trade, despite a reduced public profile and a pullback in US government encouragement in 2025. ESG management remains a core responsibility for 62% of trade professionals, influencing supplier selection for 78% of respondents globally. Companies are embedding ESG expectations into supplier governance frameworks, shifting from declarative initiatives to permanent compliance and sourcing disciplines. Data collection focuses on operationally relevant areas like FTA eligibility, Country of Origin (COO), and Authorized Economic Operator (AEO) status, alongside environmental, social, and governance metrics. Technology adoption for ESG management significantly increased in 2025, with one-third of organizations using automated solutions, up from 20% in 2024, enhancing efficiency and integration into broader trade workflows.

Key takeaway

For executives overseeing global trade operations, your ESG strategy must shift from a purely reputational focus to an integrated, operational discipline. Prioritize investing in automated ESG solutions and aligning ESG metrics with tangible business outcomes like cost reduction and supply chain reliability. This approach ensures ESG efforts are sustainable and contribute directly to strategic business growth, rather than being perceived as separate compliance exercises.

Key insights

ESG is evolving from public relations to an operational, data-driven discipline embedded in global trade functions.

Principles

• ESG is a core trade function.
• Operational relevance drives ESG data collection.
• Technology enhances ESG management efficiency.

Method

Embed ESG expectations into supplier governance frameworks, focusing on operationally relevant data like FTA eligibility and COO, and leverage automation for tracking and analysis.

In practice

• Identify ESG metrics impacting supply chain cost and efficiency.
• Invest in technology infrastructure for ESG tracking.
• Articulate ESG value in business terms to senior management.

Topics

• Global Trade ESG
• Supply Chain Compliance
• ESG Data Management
• Trade Automation
• Supplier Governance

Best for: Executive, Business Analyst, Consultant, Operations Professional

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Editorial summary, takeaway, and curation by AIssential. Original article published by Thomson Reuters Institute.