“The train has left the station” – Isabelle Hudon on why sustainability is core to business

“The train has left the station.” With that phrase, Isabelle Hudon, President and CEO of the Business Development Bank of Canada, sums up the unstoppable shift happening in business today. Sustainability, once treated as optional, is now at the heart of how companies compete, attract talent, and build resilience for the future.

Isabelle Hudon, who has led the launch of a $500 million venture fund for women-led businesses and previously served as Canada’s Ambassador to France and Monaco, has seen first-hand how the forces of sustainability, inclusive growth, and leadership converge. In a recent conversation, she shared why the change is happening faster than many expected – and what it means for entrepreneurs everywhere.

The underestimated role of small and mid-sized businesses

For years, the focus of sustainability conversations has been on large corporations. Yet smaller firms, collectively, hold enormous influence. Isabelle Hudon points out that entrepreneurs often underestimate their impact, initially dismissing climate action as something for “big business.” But the reality is different.

This shift in perspective reframes the debate: if small and mid-sized companies are responsible for such a significant share of emissions, then they are also central to the solution. And while entrepreneurs are often weighed down by competing priorities – finances, staffing, growth – the external pressures to change are mounting. Clients and partners are increasingly unwilling to work with businesses that don’t demonstrate sustainable practices.

A turning point, Isabelle Hudon notes, came about two years ago when many entrepreneurs realized they risked losing both customers and contracts unless they adapted. That moment sparked a wave of businesses rethinking processes, supply chains, and strategies to embed sustainability into day-to-day operations.

Employees as the most powerful catalysts

If clients and partners are pushing businesses toward change, employees are the ones accelerating it. Isabelle Hudon is unequivocal about which group wields the strongest influence.

In particular, younger generations are making career choices based on values. They expect employers to reflect their environmental and social priorities – and they’re willing to walk away if they don’t. This dynamic is changing the talent landscape worldwide. In industries where skilled workers are in short supply, sustainability has become not just an ethical commitment but also a competitive advantage in attracting and retaining talent.

A growing number of companies are responding with innovative policies. Some offer green commuting benefits or commit to carbon-neutral offices, while others go further, tying leadership bonuses to sustainability goals. What matters most, as Isabelle Hudon emphasizes, is authenticity: employees want to see action, not slogans.

The result is a virtuous cycle. As staff push for alignment between values and practice, businesses are compelled to evolve faster. That evolution, in turn, makes them more attractive to the next generation of talent.

Investors, governments, and the long-term horizon

While employees are shaping business from the inside, investors and governments are exerting influence from the outside. The growing demand for transparent ESG (environmental, social, governance) practices is now a defining feature of global finance. Isabelle Hudon believes this dynamic will only deepen.

Rating agencies and investors are raising expectations across markets. Companies are being asked not just to declare intentions but to prove them with measurable outcomes. For entrepreneurs, this means sustainability is no longer a branding exercise – it’s a condition for securing financing, partnerships, and long-term growth.

This is why Isabelle Hudon remains confident. While the terminology around ESG may evolve, the underlying momentum will not reverse. Businesses are making what she calls “smart decisions for their top and bottom line,” positioning themselves for resilience in a world where sustainability is increasingly non-negotiable.

A smarter, stronger path forward

The message from Isabelle Hudon’s perspective is clear: entrepreneurs of every size must take sustainability seriously, not as an extra burden but as a pathway to competitiveness. What once seemed like an obligation has become an opportunity – to innovate, to attract the best talent, and to build trust with customers and investors alike.

The train has indeed left the station. The challenge now is not whether businesses will get on board, but how fast they will move once they do.