We are hearing from many Senior Leaders that this tension is not theoretical. Many companies’ pursuing global sustainability strategies encounter friction when reconciling divergent stakeholder expectations across regions. The question we are often asked is, “How do you stay coherent globally while adapting locally, and avoid sending mixed signals?”

How we are seeing divergence show up in practice 

Messaging & public commitments 

In Europe, bold climate pledges, detailed disclosure, and ambitious targets continue to serve as differentiators and create value. In the U.S., visible sustainability messaging can attract scrutiny or backlash. Some firms respond by softening language or delaying announcements in specific markets, but that risks inconsistency in perception. 

Incentives & decision rights 

We are seeing more interest in linking sustainability metrics to executive compensation which can resonate in Europe, but risks been questioned in U.S. markets as politicised or non-material. Without clarity on who (global HQ, regional leadership, or local business units) sets which rules, tensions can arise. 

Execution complexity 

Even when strategic alignment is there, execution diverges. Regional differences in regulation, data maturity, stakeholder expectations, supply chains, and systems mean that a “one size fits all” strategy often fails at the implementation stage without careful planning and localisation.   

Regulation and regional maturity 

Another source of friction lies in the uneven maturity of sustainability regulation. Some regions, particularly in Europe, operate under detailed disclosure frameworks such as the CSRD, while others have minimal requirements. In the United States, new rules such as California’s SB 253 and SB 261, and proposed SEC rules on climate reporting, are reshaping expectations. At the same time, the administration has signed an executive order directing agencies to eliminate “illegal” DEI programmes and discourage ESG. Together, these differences create a push and pull: global strategies must reconcile the ambition of highly regulated regions with the realities of markets where sustainability is only starting to take hold. 

Strategies to bridge divergence 

Anchor a purpose-driven global narrative 

Rather than prescribing identical tactics everywhere, articulate a strong global narrative of sustainability, with a robust global strategy. This becomes your north star, guiding regional adaptation rather than imposing uniformity. 

Set guardrails, enable local adaptation 

Define core metrics, boundaries and principles that apply across markets. Let regional teams interpret levers (communications, sequencing, incentive designs) based on local context. 

Use metrics as a translator 

Harmonised metrics help compare and reconcile differences: 

• Baseline indicators (e.g. carbon intensity, waste, water) provide a consistent thread. 

• Regionally relevant metrics let local teams focus where it matters. 

• Be transparent: lay out assumptions, trade-offs, and adjustments per region, so stakeholders see how local results map to global goals. 

Clarify governance & escalation 

Lack of clarity is a key breakdown mode. Define: 

• Which sustainability decisions are global (e.g. setting overall targets, capital allocation), 

• Which are regional (e.g. local communication styles, implementation paths), 

• How conflicts escalate or get resolved. 

Cross-regional review mechanisms and moderated forums can help convert tension into learning rather than friction.

Looking ahead

Divergence in sustainability expectations is not a flaw rather it is a reality of operating across jurisdictions with different investor, regulatory, client and cultural norms. The firms that succeed will not eliminate this tension, they will manage it. They will continue to build a resilient narrative and strategy, align where it counts, flex where it must, and use data and governance for better decision making. 

If your global sustainability strategy is under stress, we can share our experience, frameworks, peer benchmarking and actionable pathways; together we can help you turn regional friction into strategic advantage. 

To understand more, contact the team here.