• • • The ceasefire is between the US and Iran and is not a regional peace 鈥�听Israel launched its heaviest strikes yet on Lebanon within hours of the announced deal. Iran hit oil infrastructure in Kuwait, the UAE, Bahrain, and Saudi Arabia 鈥� including the East-West Pipeline, the primary route for bypassing the Strait of Hormuz. Companies planning around a return to normal should instead plan around the idea that the war has narrowed, not ended.

    • If the disruption stays within one quarter, the economic damage is painful but reversible 鈥� The Dallas Fed projects WTI oil at roughly $98 per barrel with a modest GDP hit in a short-closure scenario. The catastrophic scenario 鈥� WTI above $132 with sustained negative growth 鈥� requires the closure of the war to drag past Q2. Every week the ceasefire holds improves the odds, but Iran’s strike on the Saudi bypass pipeline complicates even the optimistic timeline.

    • Iran may have stumbled into the most lucrative chokepoint tax in modern history 鈥� At conservative estimates, transit fees charged for traversing the Strait of Hormuz could generate $40 billion to $50 billion for Iran annually, or roughly 10% to 15% of Iran’s pre-war GDP 鈥� all at near-zero operating cost. That revenue stream inverts Tehran’s incentives. Indeed, keeping the toll system in place may now be worth more than restoring free transit.

On April 7, less than two hours before a self-imposed deadline that threatened the destruction of Iran’s civilian infrastructure, President Donald J. Trump announced a two-week ceasefire in the war in Iran that began on the last day of February and continued over 38 days of sustained air strikes by the Unites States and Israel. In turn, Iran carried out retaliatory attacks across over a dozen countries and forced the effective closure of the Strait of Hormuz.

With the ceasefire, all that has paused. Yet, the question every boardroom, general counsel’s office, and procurement team is asking right now is simple: How can I plan around this?

The honest answer is, not yet 鈥� and the first 24 hours have already shown why.

A fragile, but functional peace

The ceasefire is remarkably thin, and it鈥檚 based on three operative clauses: i) the US and Israel halt strikes on Iran; ii) Iran halts retaliatory attacks on the US and Israel; and iii) Iran allows “safe passage” through the Strait of Hormuz. Everything else 鈥� from nuclear terms, sanctions, reconstruction, and the legal status of Hormuz transit 鈥� has been punted to negotiations in Islamabad beginning April 10, with Pakistan mediating.

With the ceasefire, the question every boardroom, general counsel’s office, and procurement team is asking right now is simple: “How can I plan around this?”

However, what the ceasefire covers matters less than what it doesn’t. Within hours of the announcement, Israel launched its heaviest strikes yet on Lebanon, and Iran warned it would withdraw from the ceasefire if attacks on Lebanon continue. Meanwhile, Kuwait, the UAE, and Bahrain all reported fresh Iranian missile and drone strikes targeting oil, power, and desalination infrastructure after the ceasefire was in place. Most critically, Iran struck Saudi Arabia’s East-West Pipeline, the main route by which Gulf producers have been rerouting oil to bypass the blockaded strait.

That pipeline strike should command attention in every supply chain and energy risk briefing this week because it signals how shaky the agreement is, and that Iran remains a long-term threat to vital infrastructure across the region.

For companies operating in or sourcing from the Gulf, the practical implications are immediate. This is not a ceasefire that restores pre-war operating conditions; rather it is a bilateral pause between two belligerents while the regional war continues around them. Insurance premiums, shipping risk assessments, and supply chain contingency plans should reflect that distinction until there is a meaningful shift.

What does this mean for the next two weeks?

Both sides are claiming victory 鈥� and increasingly, claiming different deals. Trump called Iran’s 10-point proposal “a workable basis on which to negotiate”; and Iran’s Supreme National Security Council called the ceasefire a “crushing defeat” for Washington. The White House now says the 10-point plan Iran is publicly circulating differs from the terms that were actually negotiated for the ceasefire. Tehran, meanwhile, says there is no deal at all if Lebanon isn’t included 鈥� a condition the US has not acknowledged. And of course, the Strait of Hormuz remains closed.

These are not the hallmarks of a stable agreement; but they may be the hallmarks of a durable one. The deal is thin enough so that each side can brief its domestic audience on a different story, and as long as neither is forced to reconcile those stories publicly, the pause holds.

And the incentives to keep talking are asymmetric but real. The US has watched gas prices surge past $4 nationally as domestic support for the war 鈥� which started at levels best described as in a hole 鈥� continued to drop even further. Goldman Sachs raised its recession probability to 30% and JPMorgan to 35%, and every day the strait stays closed pushes those numbers higher. The administration needs the global economy to exhale and needs distance itself from a war so it can focus on other priorities, including an already difficult midterm election cycle.

With the ceasefire, all that has paused. Yet, the question every boardroom, general counsel’s office, and procurement team is asking right now is simple: How can I plan around this?

Iran, for its part, wants the bombing to stop. Its conventional navy has been functionally destroyed, its air defenses are highly degraded, its nuclear facilities have sustained severe damage, and its cities, bridges, and transportation networks have been hit repeatedly. The regime survived and arguably emerged with greater domestic legitimacy than it had before the war, but the physical toll is mounting. Tehran wants the strikes to stop so it can claim victory by survival without incurring any more costs.

This mutual exhaustion is the load-bearing structure of the ceasefire. If the ceasefire holds for 72 hours (as I think it might), and if the strait begins opening to escorted traffic by Friday as Iranian officials have signaled, and if neither side finds a reason to walk away before the Islamabad talks convene, then the ceasefire will likely be extended. Not because the underlying disputes get resolved, but because the cost of resuming hostilities exceeds the cost of continuing to talk. Expect a rolling series of extensions, probably 30 to 45 days at a time, that resolve nothing while letting global markets gradually stabilize.

As we wrote earlier this month, if the disruption remains limited to roughly one quarter, the oil price shock is painful but reversible, ugly, but manageable. And every week the ceasefire holds pushes the trajectory toward the manageable scenario.

What happens after the ceasefire?

Again, if the ceasefire holds, we then have to start thinking about how this conflict resolves. Not surprisingly, this is where it gets uncomfortable.

The conventional assumption in Washington and in global markets is that the Strait of Hormuz will return to normal once the fighting stops. That assumption underestimates what Iran has built.

Iran’s parliament is working to pass a Strait of Hormuz Management Plan, codifying its claimed sovereignty over strait transit and establishing a legal framework for collecting toll fees. Media reports indicate Iran has been charging vessels between $1 million and $2 million per transit and is planning to keep charging those tolls for all ships as the strait reopens. So, at $1 million per ship, and with up to 135 transits per day, 365 days a year, that’s about $40 billion to $50 billion in annual revenue for Iran, or up to 15% of Iran’s pre-war GDP. All at an operating cost that approaches zero.

Iran didn’t enter this war planning to build the most lucrative chokepoint tax in modern history, but it may have stumbled into exactly that.

Compare that to Iran’s oil sector, which generated approximately $53 billion annually in 2022 and 2023, required massive capital investment and maintenance, and was subject to constant disruption. The toll revenue is comparable in scale, dramatically cheaper to operate, and immune to sanctions. If the final number is even a fraction of this, it鈥檚 still a massive financial shot in the arm for Iran that could become a far greater advantage than the damage to capital that the war has inflicted upon the state.

Iran didn’t enter this war planning to build the most lucrative chokepoint tax in modern history, but it may have stumbled into exactly that.

Of course, this changes the structural incentives around the Strait of Hormuz in ways most analysts haven’t fully absorbed. A permanent toll system gives Iran a revenue base to rebuild the military assets it lost, reduce its dependence on oil exports, and fund domestic investment that could blunt future protest movements. The regime’s cost-benefit calculus has inverted: Keeping the toll operational in place may now be worth more than restoring the pre-war status quo.

For the US and Israel, the only way to dismantle this arrangement is by force and the last 38 days demonstrated the limits of that approach. The US achieved air and naval superiority, destroyed Iran’s conventional military, and killed the supreme leader. None of it was enough to compel capitulation, and in fact, may not have even come close. A second campaign faces the same likely result, against a population now unified by the experience of surviving the first one.

The war didn’t just disrupt global trade. It may have permanently repriced the most important shipping lane on Earth 鈥� and left every piece of energy infrastructure in the Gulf more vulnerable than it was before the first air strike landed.

Please add your voice to 成人VR视频鈥� flagship , a global study exploring how the professional landscape continues to change.听

Key takeaways:

• • • Worked rate momentum is slowing at a crucial time 鈥� Q4鈥檚 7.1% growth in worked rates, while historically strong, is the smallest quarterly increase of 2025, indicating the rate鈥慸riven profit engine may not be endlessly responsive as firms approach 2026.

    • Elasticity at its strongest and most vulnerable 鈥� Since late-2022, worked鈥憆ate growth has translated almost one鈥慺or鈥憃ne into law firm profitability, but even a slight softening in rate momentum now poses outsized risks as client budgets tighten.

    • History shows the system has limits 鈥� The 2021鈥� 鈥�23 period demonstrated that rate growth alone cannot sustain profitability. Today鈥檚 Formula 1鈥憀evel responsiveness boosts gain quickly enough, but it can leave firms more exposed if the market changes direction.

Even as the winds shift, law firms still managed to sail into a strong finish in the fourth quarter of 2025; but beneath that smooth landing, the current was already changing direction. As the 成人VR视频庐 Institute鈥檚 Law Firm Financial Index (LFFI) edged down 2 points to 61 in Q4, a small but notable reversal after a full year of steady gains. The dip was driven largely by cooling demand growth, and while modest in absolute terms, it hints at a broader realignment that may be taking shape just as the industry steps into 2026.

Unsurprisingly considering its role in profitability, much of this shift comes down to worked rates and their relationship to profitability 鈥� a relationship that, in recent years, has been remarkably tight. Yet Q4 showed the first signs that the market may be entering a more complicated phase.

The F1 machine

In the previous decade, the rate-driven profit engine behaved more open, stable, predictable, and generally comfortable 鈥� albeit with one important limitation. It didn鈥檛 offer much acceleration. In fact, most of the higher鈥憊elocity gains only began to appear as the industry approached the pandemic era. Then, when the pandemic hit and the system started to strain, with any acceleration felt weighed down and less responsive as firms navigated uneven pavement and constant adjustments.

Beginning in 2023, the industry shifted again 鈥� this time with the acceleration power of a Formula 1 race car. Rates became extraordinarily efficient in being translated into profitability. In recent quarters, profit rates have seen significant growth, so when firms pressed the accelerator, the needle moved quickly.

However, an F1 car demands precision. The faster it goes, the less margin there is for error. Today, the market is operating in a phase in which rate increases translate to profit gains at incredible speed.

A decade of history reveals a crucial pattern

The chart above broadens the lens to cover more than 10 years of data, bringing an important nuance into focus. The relationship between worked rates and profitability has not always been as linear 鈥� or as reliable 鈥� as it has in the most recent period. From Q1 2015 to Q4 2021, firms were driving at a manageable pace: For every 1% increase in worked rates, there was an approximate 0.7% growth in profit. Indeed, most of the historical data aligns with the intuition that higher rates bring higher profits.

However, between Q4 2021 and Q1 2023, the pattern bends in the opposite direction. Rate growth accelerated sharply, yet profitability declined. At first glance, it appears counterintuitive, but in racing terms, the track conditions had deteriorated sharply, making speed alone not just ineffective but actually risky. This was a period marked by elevated inflation, rapid expense growth, compensation escalations, and operational volatility across many law firms.

The logic was simple: Even aggressive rate increases couldn鈥檛 fully offset the pressure on margins. Moreover, in such a strained environment, attempts to raise worked rates by 1% led to a nearly 0.9% decrease in profits 鈥� almost a complete reversal. As a result, firms were recording some of their highest worked rate growth levels in nearly a decade, yet profitability on a rolling 12鈥憁onth basis dipped into negative territory and remained there for several quarters.

The goal of discussing this period isn鈥檛 to argue that rate increases backfired. They technically didn鈥檛. Rather, the lesson is more subtle鈥� and more relevant today: Rate growth is essential, but not omnipotent. It cannot solve every profitability challenge on its own.

The more recent elasticity story: Rates and profit move together

The LFFI鈥檚 softening in Q4 was influenced not only by decelerating demand growth, but also by a subtle easing of rate growth鈥檚 momentum. Worked rates grew 7.1% for the quarter 鈥� as we said, still strong, but the slowest quarterly increase of 2025. In a different era, this might have been a footnote; however, since the pandemic, rate growth has become the central pillar supporting law firm profitability. Where productivity and demand once balanced the equation, rates now serve as the primary driver. This means that any moderation, even a slight one, carries outsized significance.

The chart above illustrates this dynamic clearly. Without belaboring the mechanics, each point represents one quarter, with worked rate growth on one axis and profitability on the other, both on a rolling 12鈥憁onth basis. The clustering shows a close, consistent linkage over the last several years, showing that as rate growth pushed steadily upward, profitability almost invariably followed.

One takeaway stands out, however. Since late 2022, every 1% increase in worked rates has corresponded with roughly a 0.9% increase in profit growth, contrasting sharply with the patterns observed during the pandemic period. That kind of elasticity is rare in the history of the legal industry, and it helps explain why 2025 was such a profitable year across the market. Firms exceeded a two鈥慸ecade threshold in rate growth, achieving average increases near 7% and double鈥慸igit gains at the top end.

Again, however, that relationship cuts both ways. If rate growth were to stall 鈥� or if clients were to push back more aggressively on rates 鈥� the profit engine that has powered firms through much of the last three years could lose momentum quickly. The early signs of that tension were already present in Q4, and they could intensify in 2026. Corporate budgets are under acute pressure, and counter鈥慶yclical demand often rises during economically turbulent periods, tightening constraints even further.

Put simply, the market is showing early signs that clients鈥� ability to absorb further rate increases may clash with firms鈥� dependence on that rate growth to sustain their profit growth. And the years of historical data serve as a reminder that this relationship isn鈥檛 unbreakable, and that even well鈥慶alibrated systems can behave unpredictably when conditions shift.

The real question heading into 2026 is not whether firms can continue pressing the accelerator, but whether they can do so safely. At this Formula 1 speed, maintaining profitability isn鈥檛 just about adding power 鈥� it鈥檚 about navigating a track that is becoming narrower, more volatile, and far less forgiving.

You can download the 成人VR视频 Institute鈥檚 Q4 2025 Law Firm Financial Index here

You can read TRI鈥檚 first “Inside the Shift” feature, The 4 scenarios: Which law firm business model are you building? here

If you鈥檙e running a law firm right now, you鈥檝e probably felt it 鈥� the ground is shifting fast. AI isn鈥檛 some future consideration; indeed, it鈥檚 already shaping how clients choose their firms, how work gets done, and which business models are built to last.

To examine this situation 鈥� and many more in the future 鈥� more deeply, the 成人VR视频 Institute (TRI) has begun publishing a new feature segment, , that will allow our expert analysis and supporting data to more fully tell some of the most important stories in the legal, tax, accounting, corporate, and government areas.

Our first Inside the Shift feature, The 4 scenarios: Which law firm business model are you building? by Elizabeth Duffy, TRI鈥檚 Senior Director of Client Engagement and Raghu Ramanathan, President of 成人VR视频 Legal Professional business, cuts through much of the noise around AI adoption in the legal industry. The piece lays out a clear, uncomfortable truth: in the age of AI, strategic clarity isn鈥檛 optional 鈥� it鈥檚 survival.

For years, many law firms have tried to hedge their bets. A little bespoke work here, a little efficiency there. Premium pricing mixed with cost pressure. The result? A mushy middle that feels safe but is actually the most dangerous place to be. As the feature makes clear: Law firms without a distinct position 鈥� neither elite, automated, scaled, nor protected by regulation 鈥� are the ones most exposed to existential risk.

And here鈥檚 the kicker that the authors point out: Clients aren鈥檛 waiting for firms to catch up.

Corporate legal departments are already evaluating firms based on their AI maturity 鈥� how effectively they use technology to deliver speed, consistency, and quality. This is happening even as many clients are still figuring out their own AI strategies. In other words, law firms are being judged by their clients right now, whether they鈥檙e ready or not.

Client pressure is building faster than internal capabilities can keep pace.

Even corporate legal departments new to AI are asking pointed questions of outside counsel.

The authors don鈥檛 argue that there鈥檚 one correct model. Instead, the piece lays out four distinct scenarios that law firm leaders can choose from, making the case that choosing something deliberately is far better than drifting. Of course, each scenario demands different investments in talent, technology, pricing, and client engagement. What they all share, however, is intention.

That鈥檚 what makes this piece 鈥� and future Inside the Shift features 鈥� so valuable. It鈥檚 not full of hype, and it鈥檚 not fear鈥憁ongering. Rather it鈥檚 offering a strategic framework for leaders who know that AI is reshaping professional service markets but are still wrestling with what that actually means for their organization.

If you鈥檙e a managing partner, innovation leader, or industry watcher who鈥檚 tired of vague predictions and wants a clearer map of what鈥檚 ahead, the Inside the Shift features will be well worth your time. The questions they will raise 鈥� about positioning, differentiation, and the cost of standing still 鈥� aren鈥檛 comfortable, but they鈥檙e exactly the questions firms need to be asking now.

So don鈥檛 just skim the headlines about AI in law. Click through and read today鈥檚 Inside the Shift feature. It might help you see, more clearly than before, which business model you鈥檙e actually building in your law firm 鈥� and whether it鈥檚 the one that will be able to carry your firm into the next decade.

You can find more from the 成人VR视频 Institute here

Key takeaways:

• • • Ways of achieving growth has changed 鈥� Sustainable growth now depends less on raw revenue and more on improving income per partner through smarter leverage, intentional service mix, and disciplined pricing.

    • Proactive firms will be better positioned 鈥� Firms that adopt data-driven pricing, bundled offerings, and subscription models will be better positioned to communicate value, raise fees confidently, and protect margins.

    • Differentiators are shifting 鈥� Leadership depth, culture, and succession planning are emerging as decisive differentiators as demographics shift, private equity reshapes the tax market, and next-generation partners step into control.

Tax, audit & accounting firms are still growing, but not all that growth is reaching the bottom line 鈥� indeed, 2026 is shaping up as a separate or be separated moment for many tax firm leaders. To sustain income per partner while the market shifts, firm leaders need to be far more intentional about how they grow, price, staff, and position their tax practices.

Here are five important ways that tax firm leaders can ensure their bottom-line growth keep pace with their top-line revenue:

1. Be deliberate about how you grow

Revenue is rising, but margins are under pressure. For example, for firms with revenue of more than $2 million, revenue grew 7.9%, yet income per equity partner (IPP) increased only 3.2%. This may imply that although firms are bringing in more money, the remaining profits available to distribute to equity partners isn鈥檛 growing at the same rate. This could mean that it鈥檚 costing firms more to generate more revenue possibly because expenses are eating into margins.

Meanwhile, 13.9% of total growth for firms whose revenue is more than $2 million now comes from mergers, and for firms with revenue of more than $20 million, more than one-fifth of growth is merger-driven.

For growth strategy, leaders should clarify their organic growth plans in light of this robust M&A drive, deciding when acquisitions are truly about capacity, specialization, or geography and when they are merely propping up lagging organic growth.

Leaders need to protect IPP metrics by focusing relentlessly on revenue per partner and revenue per person as primary levers, rather than chasing top-line growth for its own sake. Leaders also need to build optionality 鈥� with private equity, mega-firm consolidators, and independents all active, factors such as succession, capital, and ownership design have become core strategic decisions that can no longer be left to chance.

2. Treat pricing as a growth discipline

In the 成人VR视频 Institute’s pricing report for tax, audit & accounting firms, 64% of decision-makers said their firms saw revenue increases, but only 45% reported increased profits 鈥� a clear indication of margin compression. Further, just about 1-in-5 professionals said they feel 鈥渉ighly confident鈥� that their firm鈥檚 current pricing reflects the expertise of its professionals.

To be sure, key pricing work now involves moving beyond what the market will bear. While hourly billing still dominates (according to the report firms said over 40% of client engagements are billed on an hourly basis) 鈥� value-aligned methods such as fixed fees, subscriptions, and bundled packages are strongly associated with higher pricing confidence and a firm’s greater ability to raise fees.

To excel in this area, tax firm leaders need to use data rather than their gut. Although only 30% of respondents said their firm regularly benchmark their pricing against competitors, leaders overwhelmingly say better market intelligence would increase pricing confidence. Also, firms should expand subscription and bundle pricing options, since respondents form subscription-billing firms report significantly higher confidence that their pricing reflects value. Indeed, many firms using bundled packages have raised prices 10% to 24% or more over the past two years.

3. Build a capacity model that scales

The Rosenberg data is blunt: The fastest path to higher income per partner is not logging more partner hours 鈥� it is using smart leverage and stronger rates. Elite tax firms (those with IPP above $800,000) generate roughly $3.9 million in revenue per equity partner and maintain staff-to-partner ratios of around 17:1.

Several capacity dynamics matter in practice. Leverage drives profitability, for example, and those firms that have staff-to-partner ratios above 10 report IPP roughly double that of firms with ratios below 3, even though they may carry higher salary percentages.

Further, outsourcing has become mainstream. More than 4-in-10 firms (42%) with more than $2 million in revenue now outsource full-time equivalent (FTEs) employees, a figure that rises to 63% among firms with more than $ 20 million dollars. Interestingly, turnover has eased to about 11%, the lowest for the industry in years, but expectations have shifted as firms intentionally reduce average billable hours per staff member to prioritize sustainable workloads.

In fact, the key growth question is no longer Can we find the work? but rather Can we design a capacity model 鈥� onshore, offshore, AI-enabled 鈥� that supports higher rates without burning out our people?

4. Formalize strategy, marketing & service mix

Firms with written strategic plans earn about 4.5% more IPP than those without, according to the data, and firms with a formal marketing plan enjoy about 9% higher IPP. The most profitable firms are also more intentional about service mix, tilting toward advisory and financial services.

Growth-enabling practices start with written strategic and marketing plans. Firms that document these plans consistently outperform their peers, particularly when navigating private equity interest, AI adoption, and succession decisions. Many leading tax firms are deliberately shifting from compliance to advisory, reducing their reliance on commodity tax compliance and expanding into higher-value advisory work to drive stronger profitability. These firms are also packaging and communicating value more effectively by bundling compliance and advisory services into tiered packages, which in turn gives them greater ability to raise fees and justify premium positioning in the market.

5. Invest in leadership, culture & succession

Growth without leadership depth is fragile, especially in the tax profession in which the average partner age has remained high. Most recently, however, the average partner age has dipped slightly to about 52 years old as more retirements occur. And female partners now account for roughly one-quarter of partner groups overall, showing progress but also a persistent equity gap.

For many firms, succession remains a primary concern, and leadership-related growth priorities begin with treating succession as strategy, not an HR project. More firms are revisiting buy-in levels, which average around $133,000, and are experimenting with non-equity roles and alternative practice structures to create more flexible pathways to ownership. At the same time, leaders must protect and modernize their firm culture, recognizing that poorly managed PE transactions, rigid return-to-office policies, and underinvestment in technology-forward talent can quickly erode the very engines of growth they depend on.

Additionally, firms are elevating the managing partner role. In larger practices, managing partners鈥� chargeable hours are now meaningfully lower, reflecting an intentional shift toward having that role work on the business 鈥� strategy, talent, pricing, and M&A 鈥� rather than in it.

For tax firm leaders, these five considerations form a practical checklist for 2026 planning. Grounding each strategic initiative in data and taking visible action can help ensure that the next wave of growth shows up not just in revenue, but in sustainable, rising income per partner.

You can download a copy of the 成人VR视频 Institute’s pricing report for tax, audit & accounting firms, here

Key takeaways:

• • • Reframe your value proposition 鈥� Translate tax achievements into business language the C-suite understands, such as protecting shareholder value, enabling growth, and mitigating risk rather than simply reporting compliance metrics.

    • Invest strategically in technology and talent 鈥� Prioritize automation and AI tools while outsourcing strategically to free internal resources for high-value strategic work that demonstrates the department’s business impact.

    • Build cross-functional partnerships 鈥� Proactively collaborate with IT, legal, operations, and HR on enterprise-wide initiatives that will position the tax function as an essential strategic partner rather than an isolated compliance department.

SAN FRANCISCO 鈥� In recently released , published by the 成人VR视频 Institute and Tax Executives Institute,听a large portion of the tax department professionals surveyed expressed their desired to do more strategic work compared to simple tactical work. This was a theme we鈥檝e seen repeatedly across our research: Tax professionals are shedding their traditional compliance-focused image and moving toward becoming strategic business partners to their organizations.

By articulating their value proposition, investing strategically in technology and talent, and aligning with broader business objectives, tax department leaders can secure the resources and influence needed to drive meaningful organizational impact.

Yet, the tax function has long been viewed as a necessary cost center 鈥� a department that ensures compliance, files returns, and manages audits 鈥� despite the essential work that in-house tax professionals do. Rarely did these professionals feel they are treated as strategic business partners. However, perception is rapidly changing, according to the insights shared at the recent听.

Today’s tax leaders are positioning their teams as strategic partners who provide critical insights that influence business resilience, growth strategies, and organizational risk management, conference panelists explained.

The evolving role of the tax function

Amid ongoing tax and trade policy shifts and increased business uncertainty, opportunities abound for tax professionals in corporate tax departments. Indeed, several panelists noted that the State of the Corporate Tax Department report showed that tax leaders are increasingly becoming deeply involved in strategic decisions ranging from business resilience strategy (with 63% of survey respondents saying their tax department is involved in this area) to M&A transactions (60%), organizational risk management (58%), and supply chain management (55%).

Further, CFOs are increasingly looking to their in-house tax leaders for support across multiple strategic areas, including digital transformation and AI, ESG strategy, workforce strategy, and economic resilience planning. This expanded role creates for the tax team creates both opportunities and challenges for those seeking to demonstrate their strategic value.

By articulating their value proposition, investing strategically in technology and talent, and aligning with broader business objectives, tax department leaders can secure the resources and influence needed to drive meaningful organizational impact.

In fact, one of the most pressing question tax leaders face is how to secure adequate budget funding in an environment of competing corporate priorities. The answer lies in strategic thinking about resource allocation and being intentional about having a seat at the table to better advocate for necessary investments. Tax department leaders must educate executive leadership on the risks that come with not having enough budget resources 鈥� from trying to do more with less to the potential for the company to face more exposure and risk that includes increased audits and fines.

As session panelists explained, the key is to frame discussions in terms that C-Suite leaders understand. Rather than simply requesting more resources, tax leaders should articulate how investments in the tax function can all it to better protect revenue, enable growth opportunities, and mitigate organizational risk.

Creating a value-focused identity

That articulation to management is a big step toward a tax function鈥檚 goal to move from feeling and acting like a cost center to being a strategic partner to the business. Indeed, corporate tax department leaders must change their own perceptions of how the department is perceived first 鈥� in essence, rebranding themselves and reimagining their identity. This starts with creating a compelling value story that resonates with the C-suite.

Start with creating (or recreating) a department mission statement that emphasizes value creation rather than mere compliance, aligning with broader priorities of the organization, such as business partnership and growth. Then, work to provide insights to drive decisions, and support regulatory demands while maintaining transparency.

Check out for more insight on how corporate tax professionals shift from compliance to strategic work

One practical approach is to speak the language of the C-suite by translating tax achievements into business metrics that executives care about, panelists added. For example, rather than reporting that the department completed the tax provision on time, frame it instead as the department protected $X million in shareholder value through accurate financial reporting or enabled the acquisition to close on schedule by providing timely tax due diligence.

It is also important for tax departments to track and communicate their wins consistently, panelists said, creating regular touchpoints with executive leadership to share accomplishments that position the tax function as a proactive business partner.

Navigating technology, talent, and collaboration

Technology investment represents both an opportunity and a challenge for tax departments, as the State of the Corporate Tax Department report makes clear. More than half of the respondents say they expected some increase in their budgets to invest in new tech tools over the next few years, and many indicate they plan to invest in tools and solutions to automate their workflow, especially those that support machine learning and generative AI (GenAI).

While it is great they are anticipating an increased budget, panelist explained that tax department leaders must educate management on the practical challenges of AI adoption, including the need for clean, well-structured data as a foundation.

It is also important for tax departments to track and communicate their wins consistently, creating regular touchpoints with executive leadership to share accomplishments that position the tax function as a proactive business partner.

On another point, staffing remains one of the most critical challenges facing tax departments, and many survey respondents cited hiring as key strategic priority, according to the report. Many departments will also look to technology to augment the missing talent and strategically use outsourcing and co-sourcing to alleviate talent pressure as well. And by partnering with external advisors for specialized compliance work or surge capacity during peak periods, tax departments can further free up internal resources to focus on higher-value strategic activities.

In fact, a central theme the session panelists leaned into was how the most effective tax departments build strong collaborative relationships across the organization. According to the report, 94% of CFOs and tax leaders report that the CFO helps facilitate cross-collaboration between tax and other functions such as legal, IT, operations, and finance.

Tax department leaders should proactively seek these opportunities to partner with other departments on strategic initiatives; for example, collaborating with IT on digital transformation, working with operations on supply chain optimization, partnering with legal on M&A transactions, and supporting HR on workforce strategy.

Today, the transformation of the corporate tax function from cost center to strategic partner is not merely aspirational 鈥� it is already underway in many forward-thinking organizations. As tax, audit, and trade policy become more complex and business uncertainty continues to mount, the opportunity for tax leaders to demonstrate their strategic value to the organization has never been greater.

You can download听a full copy of the听, from the 成人VR视频 Institute and Tax Executives Institute, here

Key takeaways:

• • • Alignment of goals 鈥� Aligning departmental goals with the organization’s overall strategy is crucial for enhancing efficiency, fostering innovation, and driving long-term success.

    • Role of AI 鈥� AI can play a pivotal role in achieving this alignment by helping corporate functions define value and align their goals with the organization’s strategy.

    • Top-down approach needed 鈥� Successful alignment often requires a top-down approach to AI implementation, ensuring that AI strategies are integrated across the broader enterprise.

In today’s fast-paced and ever-evolving corporate landscape, the alignment of departmental goals with the overarching strategy of the organization is more crucial than ever. This alignment ensures that every in-house function is working towards a common objective, thereby enhancing the overall efficiency, innovation, and success of the organization as a whole.

Additionally, aligning departmental goals with the organization’s strategy also can eliminate the perception that certain corporate functions are merely cost centers, according to 成人VR视频 recently published 2025 Future of Professionals report. Indeed, many corporate functions 鈥� especially in areas like legal, risk, tax, and trade 鈥� are often seen as misaligned with the organization’s overall goals, which can lead to inefficiencies and a lack of strategic contribution from these departments.

Today, corporate leaders are under immense pressure to demonstrate how various functions contribute strategically to the value of the business rather than just managing costs. This urgency is also driven by the understanding that companies are navigating unprecedented regulatory and geopolitical complexity in the current environment, which really underscores the need for new ways to address this situation.

In today’s fast-paced and ever-evolving corporate landscape, the alignment of departmental goals with the overarching strategy of the organization is more crucial than ever.

Increasingly, in-house function leaders are looking to AI tools and solutions to find a way to bridge this critical intersection of commerce and compliance.

Yet the Future of Professionals report showed there is a strategic gap in AI usage. While nearly half (48%) of corporate professionals responding to the survey say they expect transformational AI-driven changes within their corporate functions this year, just 19% say that these functions have a departmental AI strategy in place.

In most successful transformations, however, organizations adopt an end-to-end approach that starts at the top and has the AI strategies cascade down directly from overarching enterprise goals to departmental implementation. This ensures that AI is not implemented in isolation but is integrated into the broader organizational strategy, thereby maximizing its potential to drive alignment and strategic contribution.

Empowering corporate functions with AI-driven tech

However, for departments to align their goals with the organization’s strategy, they need to be empowered with advanced technology 鈥� and it鈥檚 up to the C-Suite to drive this empowerment. Corporate management needs to ensure that their in-house functions are equipped with the tools they need to contribute strategically to the organization’s success by enabling new business, driving operational efficiency, and maintaining strict compliance. By leveraging this advanced technology, departments then can move beyond managing costs and demonstrate their strategic value to the overall enterprise.

Not surprisingly, as the report addressed, there are barriers to these efforts, with the two major hurdles being organizational silos and leadership commitments. Silos themselves are a significant challenge to many corporate initiatives that require collaboration and a change of mindset. As our research has shown, when corporate functions implement AI in isolation or without a unified enterprise strategy, they’re going to miss out on the full potential of AI to break down those internal barriers.

As for the commitment from corporate leaders, all of them should first assess where their organizations and key departments sit on their AI adoption journey. The goal should be to craft a custom-tailored AI strategy that will allow each function to secure additional ROI while acting in concert with the organization鈥檚 overall strategy.

All of this serves the greater purpose, because those organizations that can demonstrate a clarity of vision around AI will be the ones reporting better outcomes more quickly. It will be these organizational leaders who foster a culture in which former cost centers are now seen as a growth engine that can drive their professionals and the overall organization forward. For that to happen, however, these leaders must think beyond the technology and focus on how their departments鈥� mindset 鈥� and that of the overall organization 鈥� needs to change.

Achieving mindset shift and cultural change

Not surprisingly, achieving alignment between departmental goals and organizational strategy requires a significant mindset shift and cultural change. Today, there is a growing understanding that in-house functions should not be viewed as cost centers but as strategic business partners 鈥� and this shift in mindset is crucial for fostering a culture in which AI is seen as a growth engine and a tool for achieving strategic goals.

Not surprisingly, achieving alignment between departmental goals and organizational strategy requires a significant mindset shift and cultural change.

In this way, in-house departments can become the type of business partners that can really add value and that can use AI in a manner that will truly empower their ability to achieve these goals. And this mindset shift needs to happen not only among the leaders of the enabling functions, but within the C-Suite itself. If all parts of the organization are focused on how each can create value and how they can leverage AI as a tool to do that, it becomes a powerful accelerator.

AI itself also has a pivotal role to play in aligning departmental goals with organizational strategy by helping corporate functions define value, especially in today’s complex regulatory and geopolitical environment in which departments may have their hands full simply navigating these unprecedented challenges daily.

To demonstrate this, however, departments need to measure their progress as they move away from a focus on cost reduction and towards strategic value creation. Using specific success metrics 鈥� including those that measure a department鈥檚 ability to enhance foresight and prediction and improved decision-making 鈥� departments can demonstrate how each in-house function contributes to the enterprise’s strategic goals.

In fact, many organizations and their in-house functions seem well on their way down this path toward tighter alignment. While there are some corporate executives that are uncertain about AI and the level of change it will bring about, it鈥檚 clear that this is not the time nor the environment to bury your head in the sand.

Looking forward

To aligning departmental goals with the organization’s overall strategy is essential for driving efficiency, fostering innovation, and achieving long-term success. And to make this happen, C-Suite executives need to ensure that each of their corporate functions has its own AI strategy 鈥� one which complements the overall organization鈥檚 key goals. Further, departmental leaders need to develop AI strategies and then encourage collaboration with other function leaders to break down practical barriers and learn from each other.

By empowering functions with advanced technology, adopting a top-down approach to AI implementation, and leveraging success metrics, organizations can ensure that all departments are working towards a common objective and contributing strategically to the overall success of the enterprise.

You can download a copy of the 听here

Key insights:

• • • Seeking cultural clarity 鈥� The satisfaction of lawyers in a firm is not dependent on whether the firm is traditional or innovative, but rather on the clarity and consistency of the firm’s culture across the organization.

    • Achieving strategic alignment 鈥� A firm’s strategy is only effective if it is clearly understood and embraced by its lawyers. This alignment helps avoid the risk of the firm trying to be everything to everyone and ultimately being known for nothing.

    • Ensuring compensation alignment 鈥� Compensation models should align with the firm’s culture and strategy to reinforce desired behaviors. Misalignment can erode trust and engagement, especially in larger law firms.

In a legal market defined by rapid change and rising expectations, law firms are rethinking what it takes to attract and retain top talent. A new research report from the 成人VR视频 Institute, Law Firm Culture: Keys to Unlocking Firm Growth & Lawyer Engagement, offers a clear takeaway: Law firms that align their culture, strategy, and compensation are better positioned to engage lawyers, reduce attrition, and drive long-term performance.

Culture: Clarity over type

The research shows that lawyer satisfaction doesn鈥檛 hinge on whether a firm is traditional or innovative, high-intensity or work-life balanced. Instead, what matters most is cultural clarity 鈥� a shared understanding of what the firm stands for and how that shows up in day-to-day decisions.

The report identifies four common cultural footprints, shaped by two key dimensions: work environment and innovation approach:

• • • Traditional / Work-Life Balance 鈥� Conservative, short-term focused, and opportunistic
    • Innovative / Work-Life Balance 鈥� Collegial, collaborative, and mission-driven
    • Traditional / High-Intensity 鈥� Competitive, performance-driven, and profit-focused
    • Innovative / High-Intensity 鈥� Strategic, formal, and experimental

Satisfaction levels are consistent across all four. The differentiator? Whether lawyers experience the culture consistently across the firm.

Law firm leaders must take deliberate steps to understand their firm鈥檚 culture and how it might support 鈥� or hinder 鈥� long-term strategic goals. This effort involves evaluating whether internal values, behaviors, and norms align with the brand the firm aims to project externally. Structured tools, such as cultural mapping and alignment assessments, can help bring clarity to these elements, which often feel intangible but have a direct impact on client experience, talent retention, and market positioning.

Strategy: From vision to execution

A firm鈥檚 strategy is only as strong as its ability to execute it, and that execution depends on cultural alignment. When lawyers understand and embrace their firm鈥檚 strategic direction, they become its most effective advocates 鈥� both internally and in the market.

Without that alignment, firms risk falling into the trap of trying to be everything to everyone 鈥� and ultimately being known for nothing in particular.

Defining a clear strategic focus and reinforcing it consistently across the firm is essential to avoiding dilution and driving market differentiation.

Compensation: The reinforcer of culture and strategy

Compensation is more than a financial lever 鈥� it鈥檚 a signal of what the firm truly values. Yet, 4-in-10 stand-out lawyers say their firm鈥檚 compensation model is only moderately aligned or is in fact poorly aligned with the firm鈥檚 culture and strategy.

This misalignment can erode trust and engagement, especially in larger firms where complexity increases and consistency becomes harder to maintain. Firms that align all three 鈥� culture, strategy, and compensation 鈥� see a 66% increase in lawyer satisfaction and a significant drop in flight risk, according to our research.

From insight to action

To move from intention to impact, firm leaders should ask themselves several questions, including:

• • • 鈥淎re our lawyers aligned on what makes us different?鈥�
    • 鈥淚s our compensation model reinforcing the behaviors we want to see?鈥�
    • 鈥淚s our strategy clearly understood and consistently communicated?鈥�

These questions aren鈥檛 just reflective 鈥� they鈥檙e foundational to building a law firm in which talent thrives.

The bottom line: Alignment isn鈥檛 a nice-to-have 鈥� it鈥檚 a competitive advantage. Firms that bring culture, strategy, and compensation into sync don鈥檛 just retain talent, they unlock its full potential.

You can download the full report, Law Firm Culture: Keys to Unlocking Firm Growth & Lawyer Engagement, from the 成人VR视频 Institute here.

Key findings:

• • • AI’s impact on the legal industry 鈥� AI is expected to have the biggest impact on the legal industry over the next five years, with a large majority of law firm respondents anticipating that AI will fundamentally alter their businesses.

    • Lacking a clear AI strategy 鈥� Despite the recognition of AI’s transformative power, nearly one-third of law firm professionals say they believe their firms are moving too slowly on AI adoption, and only about one-in-five say their firms have a visible AI strategy in place.

    • Action plan offers a path to get there 鈥� The new action plan offers clear steps that law firm leaders can take now to build a framework of AI investment and adoption so they can see the competitive advantage of leveraging advanced technology.

Not surprisingly, AI is the single driver set to have the biggest impact on the legal industry over the next five years, according to 成人VR视频 2025 Future of Professionals Report, with 80% of law firm respondents expecting AI to fundamentally alter the course of how they conduct business.

Jump to 鈫�

Future of Professionals Report 2025: Actionable insights for law firm leaders

It is not just speculation 鈥攊n fact, the shift is well underway as almost half (47%) of law firm respondents say their firms are already experiencing at least one type of benefit from AI adoption.

However, for all the widespread recognition of the transformative power of AI and the rapid rate of adoption, there are still many firm leaders that have yet to start thinking about how they should be integrating AI into their workflows. Nearly one-third (32%) of those surveyed say their firms are moving too slowly on AI adoption, and just 22% say their firms have a visible AI strategy in place.

You can download your copy of the 2025 Future of Professionals Report here

And that could be a problem for laggard firms, because the research shows definitively that those law firms with an AI strategy are more likely to see benefits and a return on investment (ROI) than those firms without a plan. That gap 鈥� between those law firms with an AI strategy and those without one 鈥� exposes some serious risks for those law firms that have been slow to embrace technology as a strategic priority. The results of this gap could redefine law firm business models and create significant growth opportunities for firms that are effectively leveraging AI.

Clearly, strong guidance is needed for law firms to develop a well-defined strategy that will allow them to move forward in an increasingly AI-driven legal market. In a new paper, , specifically tailored to law firm professionals, we offer clear steps that law firms can take to build a framework of AI investment and adoption so they can see the ROI and competitive advantage of leveraging advanced technology.

This action plan draws from the perspectives of almost 1,000 law firm professionals 鈥� including partners, associates, lawyers, and paralegals from across the globe as well as clients 鈥� and discusses in detail how law firm professionals can align their AI strategy with their overall firm strategy and not just focus on improving operational efficiency.

Today, we鈥檙e entering a brave new world in the legal industry, led by rapid-fire AI-driven technological changes that will redefine conventional notions of how law firms operate, rearranging the ranks of industry leaders along the way.

The plan also talks about how law firms need to prioritize their early AI initiatives by, for example, creating two or three high-impact, high-feasibility pilot projects. This would help them similarly create a viable data strategy that includes having ways to manage, secure, and leverage data assets. The plan also outlines the importance for firms to invest in talent and training, while identifying any skills gaps among their professionals.

While the action plan describes many more such initial steps, it also details the ways firms can develop their AI roadmap and plot its objectives to specific use cases to help demonstrate early success and achieve firmwide goals.

鈥淭oday, we鈥檙e entering a brave new world in the legal industry, led by rapid-fire AI-driven technological changes that will redefine conventional notions of how law firms operate, rearranging the ranks of industry leaders along the way,鈥� said Raghu Ramanathan, President of Legal Professionals at 成人VR视频. 鈥淭he insights in this action plan and the overall Future of Professionals Report serve as a guide on how not just to adapt, but to lead.鈥�

Using these resources, law firm leaders will be better able to take control of their firms鈥� future, recognizing that embracing AI is no longer a choice 鈥� it is a necessity for success in today鈥檚 evolving legal landscape.

You can download

a full copy of the here

Key insights:

• • • Traditional board oversight models are outdated 鈥� Amid multiple crises threats, corporate boards that still rely on legacy governance approaches risk falling behind as today鈥檚 interconnected crises demand proactive and adaptive oversight.

    • Questioning assumptions about growth 鈥� Boards must continually challenge their assumptions about growth and risk utilizing four key strategies, including red team exercises, translating trends into strategic trade-offs, embedding sustainability anticipation, and linking culture with capital.

    • Sustainability is a central filter for all board decisions 鈥� Boards that proactively integrate sustainability into their culture, risk management, and strategic planning are better positioned to thrive amid regulatory pressures, climate risks, and stakeholder expectations in a volatile global environment.

Last year, corporate boards demonstrated greater readiness to address sustainability issues with significant financial implications, especially compared to their preparedness in 2018, according to the . For example, Environment, Social & Governance (ESG) board committees among Fortune 100听companies increased to 89 in 2024, compared to 22 in 2018.

At the same time, it is hard to know if this progress is adequate. As climate shocks become more severe, AI transforms industries, and stakeholder expectations evolve, corporate boards of directors are encountering a dynamic business environment that contains multilayered risks.

Boards operating in the traditional oversight models may soon find themselves struggling as the governance tactics of the past prove inadequate in the face of these newer changes.听Furthermore, the future operating environment for companies is becoming increasingly complex, with a heightened risk of polycrises, in which multiple, interconnected crises converge to create unprecedented challenges.

Moreover, boards of directors as fiduciary stewards of companies鈥� strategies are now expected, by regulators, investors, and stakeholders, to demonstrate fluency in climate and sustainability issues. In fact, more than 50 jurisdictions have introduced requirements or expectations for directors to possess climate-related competence. This profound shift requires boards to take a much more aggressive, forward-looking orientation in which every operating assumption is questioned.

In this context, sustainability is no longer a peripheral concern, but rather a central filter through which every decision must pass, as companies must navigate the intricate relationships between environmental, social, and economic factors to ensure long-term resilience and success. This reality means that boards must take proactive and integrated approaches to effective governance and oversight. Indeed, those that prioritize sustainability, risk management, and strategic adaptability are more likely to thrive in a world characterized by uncertainty, interdependence, and accelerating change.

Embracing re-evaluation strategies

To meet these new expectations in an ever-changing business landscape fraught with multi-faceted risks, boards must also question their assumptions about growth and the lens through which they are examining systemic risks. A board also needs to understand where it is prioritizing short-term wins at the expense of long-term viability.

These four key strategies can help directors prompt a critical re-evaluation of their growth assumptions and framework they use for assessing systemic risks 鈥� they can also help directors determine whether the board is prioritizing short-term gains over long-term sustainability:

1. Execute 鈥渞ed team鈥� exercises

Boards often find themselves surrounded by confirmation bias because they rely on trusted advisors and management teams who often share familiar viewpoints. This environment can stifle innovation and obscure systemic risks. A red team exercise can help break this cycle by inviting a diverse group of external experts and internal challengers to pressure-test assumptions about growth, systemic risks, supply resilience, reputation, and the company鈥檚 license to operate. Such exercises encourage directors to confront uncomfortable truths and explore alternative scenarios.

Too many organizations still operate as if ESG and value-creation are in conflict when, in fact, they are not. Running red team exercises in the board room can better align their strategies with sustainable goals to better spur innovation while maintaining operational resilience as priorities.

2. Translate trends into strategic trade-offs

Boards must be adept at discerning emerging trends to better inform the difficult strategic听decisions about what to pursue and what to forego. Asking tough questions that frame trends as choices is an effective mechanism to analyze trade-offs. For example, 鈥淒o we invest in short-term returns with high-carbon lock-in, or reallocate capital toward regenerative business models that preserve long-term viability?鈥� is a common trade-off question that many companies across industries are asking. By engaging in debates about real dilemmas rather than passive updates, directors can make informed decisions that balance immediate gains with future sustainability.

3. Build 鈥渟ustainability anticipation鈥� into board culture

To lead effectively in an uncertain future, boards must build sustainability foresight into their culture. An effective means of doing so is embedding sustainability anticipation into every board committee鈥檚 mandate. Tools such as dynamic scenario planning, transition-readiness metrics, and real-time materiality assessments that address emerging risks can help boards to anticipate and adapt to future challenges.

4. Link culture and capital

Most companies view sustainability as just a function rather than a filter for every business decision. This is why linking culture and capital at the board level is an essential step in making boards genuine hubs of foresight. Indeed, pulse surveys, stakeholder feedback, and behavioral data are necessary sources boards can use to make sure that sustainability is a foundational principle across all business decisions and used as a lens for value creation.

Looking ahead

The time for passive governance is over. By adopting these strategies, boards can navigate the complexities of today’s business environment for long-term viability for tomorrow. As the risks of interconnected crises 鈥� polycrises 鈥� intensify, making sustainability a fundamental criterion for every business choice is crucial for companies and can provide a profitable operating path in the years to come.

You can find out more about how companies are addressing the challenge of sustainability here

Key takeaways:

• • • Frame sustainability as future-proofing the business 鈥� Corporate leaders should characterize sustainability investments in this way to better communicate their value and importance to stakeholders.

    • Strong governance enables clear sustainability messaging 鈥� Effective board oversight and governance can help companies maintain internal clarity and emphasize their commitment to sustainability.

    • Prioritize present action over future ambitions 鈥� Focusing on current sustainability actions and progress can aid corporate leaders in building credibility and trust with stakeholders, rather than just making long-term promises.

Sustainability leaders find themselves at a crossroads in a volatile landscape. While the urgency for climate action and responsible business has never been greater, the external environment is rife with uncertainty, politicization, and hostility. Indeed, the challenge for corporate leaders is how can they keep internal momentum, communicate with credibility, and maintain resilience in the face of skepticism and shifting regulatory winds?

At Reuters Events鈥� recent , sustainability professionals came to learn how their peers are approaching sustainability action and corporate communications during this tumultuous time. Community played a big part in the learning as attendees were organized into buddy groups categorized by their primary learning objectives, such how best to communicate with stakeholders with varying interests or how to navigate changing regulatory and compliance rules.

Across the board, attendees learned the essential tenets for effective sustainability actions and messaging. Indeed, a key insight heard multiple times from the event鈥檚 speakers was the success of characterizing sustainability investments as future-proofing the business in an environment in which the only certainty is uncertainty.

Elements for sustainability messaging & engagement

Achieving clear and impactful sustainability messaging, coupled with genuine engagement, necessitates a strategic approach grounded in several fundamental elements, including:

Rethinking sustainability to focus on how it secures future performance 鈥� By aligning communication and action to withstand external shocks 鈥� be they political, regulatory, or reputational 鈥� leaders can take the first step in future-proofing company operations. This lies at the heart of strategic sustainability activities and starts by reinforcing sustainability鈥檚 connection to the company鈥檚 core purpose and ensuring that every team member understands why these actions are being taken. Indeed, in the words of one speaker: 鈥淕aining buy-in is easier when it is closely tied to purpose.鈥� If a sustainability activity does not tie into the company鈥檚 purpose, it is time to rethink it.

To put this into practice, leaders should convey a consistent internal message that sustainability is not a passing trend but rather a vital strategy for long-term value and risk management. As one executive noted: 鈥淐lients are willing to pay for future proofing and resilience.鈥�

This future-ready mindset also means that leaders should seek to build agility and adaptability into their companies鈥� operations. And today, given the current politicized atmosphere, companies face a challenge in operating in a “volatile and even polarized” environment, said Jennifer Duran of , adding that this only underscores the need for “value protection” and a “resilience-building program.”

Enabling internal clarity through strong governance 鈥� In the words of one executive: 鈥淪trong governance is the foundation for steadfast commitment to sustainability.鈥� Clear messaging is easier when there is effective board oversight and strong governance with clearly defined roles and responsibilities, going from the C-Suite down to individual contributors.

When the external conversation grows noisy or hostile, internal clarity 鈥� from the board, the C-Suite, and the operational managers 鈥� becomes the organization鈥檚 shield. As boards grapple with key issues, sustainability is an effective strategic lens to consider, and during these debates, the cost and the return on investment (ROI) is often a major component. That said, several conference speakers highlighted another ROI 鈥� the risk of inaction 鈥� upon which chief sustainability officers must consistently keep their boards focused.

Building trust through data, transparency & accountability 鈥� Robust, actionable data is the foundation of credible sustainability communication. Stakeholders expect transparency not just on companies鈥� successes, but also on their challenges and setbacks. 鈥淚t is important to keep every stakeholder on the same page and invite them to engage more,鈥� said Dave Stangis of Apollo Global Management.

Internally, sustainability is a team sport. 鈥淕etting people on board and keeping them on board鈥� is the key to embedding sustainability across the organization, said Estee Lauder鈥檚 Al Iannuzzi. For example, consistent efforts to collect data from data owners while reminding them of the important role the data plays is key to operationalizing sustainability data for transparent and accountable reporting.

However, the biggest data challenge, according to several speakers, is the reliability of data coming from the supply chain, particularly partners based overseas. While there is no magic pill to solve this problem, embedding the requirement in vendor agreements that suppliers have to share data is a useful way of operationalizing this area of data collection.

Engagement & communication actions in hostile times

Sustainability executives shared their best lessons learned to ensure their corporate sustainability strategies remain funded and move forward during this tumultuous time, including:

Prioritize action now over ambitions in the future 鈥� In an era of skepticism, ambitious long-term promises, such as like 2050 net zero targets, can sound hollow because of the long time frame. Effective sustainability messaging involves the urgency of now, because stakeholders 鈥� whether employees, customers, or regulators 鈥� want to know what the company is doing today.

Executives from pharmaceutical giant Novartis and tech heavyweight Ericsson highlighted the power of storytelling that鈥檚 rooted in current action. The key message from both companies was: 鈥淒on鈥檛 focus on 2050, communicate what you are doing now.鈥�

Urging 鈥渁ctions over commitments,鈥� Sonya Gafsi Oblisk of Whole Foods Market echoed this attitude as well. 鈥淲e can impact change and lead change every day, and small actions across the stakeholder board is the way to get there.鈥�

Institute audience-centric, authentic messaging 鈥� Authenticity and transparency, rooted in the specific needs and context of each audience, are non-negotiable in both effective engagement and sustainability messaging. When speaking with investors, framing sustainability risks as business issues are crucial. Mindy Lubber of framed the challenge succinctly: 鈥淐limate issues, water issues are business issues 鈥� climate change is a fundamental risk to our economy.鈥�

Establish strength in numbers for collaboration & advocacy 鈥� Success in sustainability communications in a politicized environment is sometimes achieved through strength in numbers. Indeed, industry coalitions and trade associations offer credibility in a hostile political environment. 鈥淲e have to collaborate, and we need to make coalitions,鈥� said Gina McCarthy, former White House climate advisor. 鈥淭hat is how change works.鈥� Likewise, working together on standards, advocacy, and best practice-sharing not only amplifies the message but also provides a buffer against sector-specific backlash, other attendees said.

Communication as a tool for resilience

Insights from the Reuters Events鈥� Responsible Business USA 2025 conference made it clear that framing sustainability through the lens of resiliency is now mission-critical for sustainability leaders. By anchoring messaging in purpose, focusing on present action, and collaborating broadly, companies can weather any potential backlash while building lasting value.

鈥淚f you鈥檙e not adopting change, you are succumbing to it,鈥� Kenvue鈥檚 Duran explained, adding that sustainability leaders should let their communication be a tool for resilience, not retreat in order to keep pushing forward, together, toward a sustainable future.

You can find more information in our Sustainability Resource Center here