Is Privacy the Next Sustainability?

Why Data Protection Is Becoming a Core ESG and CSR Metric

Introduction

Not long ago, “going green” and responsible supply chains defined the gold standard for corporate sustainability. Now, privacy is emerging alongside the environment as a new pillar of ethical business—transforming data protection from a compliance afterthought into a core ESG (Environmental, Social, and Governance) metric and CSR (Corporate Social Responsibility) talking point.

Privacy Joins the ESG Agenda

For years, ESG frameworks were primarily about emissions, waste reduction, diversity, and ethical governance. But with the proliferation of personal data and digital business models, privacy has moved from the IT back office to the boardroom:

• Regulators: New laws like the EU’s Corporate Sustainability Reporting Directive (CSRD) and India’s DPDPA now explicitly require transparent data protection disclosures12.
• ESG Ratings Agencies: Major indices and agencies are including privacy breaches and data governance in their sustainability assessments32.
• Stakeholders: Consumers, investors, and talent increasingly demand robust privacy policies as proof of trustworthiness and reputation124.

“The emphasis has shifted from ‘What does the law allow?’ to more ethical questions—‘What should you do?’ and ‘What do stakeholders expect?’ Privacy is now an important ESG component, not only for investors but also for employees and customers.”1

How Privacy Powers Sustainability and CSR

Here’s why privacy is fast becoming the “new sustainability”:

1. Reputation and Brand Trust

Transparent data practices and ethical privacy policies build stakeholder confidence and distinguish brands. Mishandling data not only risks regulatory fines but erodes trust vital for long-term value134.

2. Innovation in Responsible Data Use

Businesses now align data minimization and secure-by-design methods directly with sustainability goals, such as reducing digital waste and energy consumption involved in data storage2.

3. Materiality in ESG Reports

Integrated ESG and privacy reporting is on the rise. Investors and boards are asking for privacy disclosures alongside carbon reporting—quantifying not just what data is collected, but how it’s protected, governed, and used for societal good352.

4. Social and Governance Good

Robust privacy practices help address social inequalities in data access and security, fulfilling the “S” in ESG. Good governance of data also means greater transparency and stronger leadership accountability—key CSR aspirations32.

Making Privacy Core to Your ESG & CSR Strategy

Forward-looking organizations are taking action by:

• Hiring Chief Privacy Officers (CPOs)
• Publishing privacy impact statements in annual reports
• Adopting privacy-by-design as a core value, not just a compliance posture
• Offering privacy education and upskilling to employees and partners

Practical Steps for Modern Organizations

1. Embrace privacy as a leadership KPI: Make it visible in board meetings, annual reports, and ESG goals.
2. Map data flows with sustainability in mind: Minimize digital sprawl, optimize data storage, and integrate IT with green strategies2.
3. Engage stakeholders: Conduct transparent dialogue about data use, risks, and rights.
4. Monitor and report on privacy metrics: Track privacy breaches, data minimization success, and privacy training completion.
5. Link privacy and sustainability messaging: Use real stories—show how protecting customer data reduces waste, energy, and environmental footprint2.

Looking Ahead: Privacy as the Next “Green”

With new laws, stakeholder pressure, and the shift from compliance to ethics, privacy is poised to become as central to the modern business reputation as sustainability. Whether you’re reporting to investors, recruiting top talent, or building consumer trust, your approach to data rights and protection will increasingly define your social license to operate.

Want to lead your company into this new era? CKonnect’s “Privacy for Leaders: From Compliance to ESG” masterclass explores how to bring privacy to the heart of corporate sustainability strategy—equipping you to report, communicate, and innovate for the privacy-first era.

Privacy isn’t just a checkmark on your compliance list—it’s shaping up to be the next frontier of sustainable, responsible business.

1. https://www.pwc.nl/en/topics/blogs/how-privacy-contributes-to-your-esg-ambitions.html
2. https://secureprivacy.ai/blog/sustainable-privacy-data-protection-environmental-social-governance
3. https://www.ey.com/en_ca/insights/sustainability/connect-privacy-with-esg-to-drive-broader-business-success
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13. https://corpgov.law.harvard.edu/2025/06/24/top-10-corporate-sustainability-priorities-for-2025/
14. https://www.sustainalytics.com/esg-research/resource/corporate-esg-blog/data-privacy-and-esg-risk-7-key-questions-every-company-needs-to-address
15. https://community.opentext.com/portfolio/b/portfolio-blog/posts/corporate-social-responsibility-and-data-privacy-the-future
16. https://www.odgers.com/en-ae/insights/2025-sustainability-legislation-around-the-world/
17. https://ecovadis.com/glossary/esg-metrics/
18. https://www.linkedin.com/pulse/privacy-corporate-responsibility-issue-barton-blackburn
19. https://cloudsecurityalliance.org/blog/2025/04/22/ai-and-privacy-2024-to-2025-embracing-the-future-of-global-legal-developments
20. https://www.india-briefing.com/news/india-brsr-core-esg-rating-provider-regulation-29062.html

By Srishti Khare