Despite the pressures of tariffs and other supply chain disruptions, many companies are holding firm on their sustainability goals. That’s according to a new report from risk management and supply chain firm EiQ assessing the status of corporate sustainability budgets.
EiQ assessed data on corporate sustainability budgets across a number of sectors, including transport and supply chain management. The firm found that nearly 95 percent of responsible sourcing professionals said their sustainability and risk management budgets are being maintained (39 percent) or increased (56 percent) in 2026.
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But EiQ said that while companies are still investing in sustainability, only 24 percent said they were very confident in their business’ ability to identify risks to those efforts. More than half of businesses (54 percent) reported facing penalties or fines for responsible sourcing violations over the past year, pointing to tighter regulation and more supply chain disruption as drivers.
“Our 2026 survey of top trends in responsible sourcing reveals the challenges of ensuring compliance in a fast-changing geopolitical landscape,” said Andy Gibbard, chief customer officer, EiQ. “It reflects an ever-more complex legislative environment, both globally and locally, to which practitioners are having to constantly adapt.”
One of the biggest factors businesses have had to adapt to is the constantly changing tariff situation driven by the policies of the Trump Administration. Nearly half of respondents (47 percent) identified tariffs as one of their biggest challenges, along with poor data quality (49 percent). Other issues such as limited resources to address changing immigration policies, civil unrest and the reshaping perception of sustainability risks came up as challenges for sustainability programs.
EiQ’s survey was conducted prior to the start of the conflict with Iran, which has significantly impacted supply chains with disruptions in the shipping thoroughfare through the Strait of Hormuz.
“2025 marked the tipping point for responsible sourcing, with tariffs and conflict disrupting supply chains, and the regulation landscape fragmenting,” Gibbard said. “This year, ongoing global conflict is already reshaping supply chains, so sourcing teams must be prepared for all scenarios and understand the risks and tradeoffs of every sourcing decision. This requires a shift in approach to leverage proactive monitoring, stronger due diligence frameworks and a more granular, agile approach to risk management.”
The role of AI still appears to be minimal in corporate sustainability programs, according to the report. Of respondents, 35 percent said AI was a top investment opportunity, but 31 percent still rely on manual methods with no automation for due diligence processing. Siloed systems and poor data quality have prevented nearly half of respondents from getting timely, holistic risk assessment.
“Businesses cannot afford the reputational or operational repercussions of supply chain violations,” Gibbard said. “But it’s clear that many organizations continue to rely on disconnected systems and manual processes, which makes it almost impossible to build a complete picture of supplier performance and risk. Static questionnaires and manual efforts cannot keep pace with today’s evolving risk landscape. When data is inconsistent, incomplete or trapped in silos, businesses struggle to spot emerging patterns or direct resources to where they’re needed most.”
Gibbard said that with growing sustainability regulation—particularly in Europe where programs such as the European Union’s Digital Product Passport for Textiles becomes mandatory next year—companies can no longer take solid data collection and reporting for granted.
“In today’s environment of increasing regulatory enforcement and media scrutiny, blind spots can quickly turn into costly compliance failures,” he said. “To address these changes, leading firms are actively looking to connect siloed systems and embed continuous AI-driven monitoring into day-to-day operations to build total supply chain confidence.”
