Key Trends for a Transformative Year
EcoAct CEO Stuart Lemmon sets out the five key themes that will shape the 2025 corporate sustainability agenda.
As 2025 unfolds, corporate sustainability continues to evolve in response to growing regulatory demands, heightened scrutiny of climate goals, and the urgent need to embed nature-positive strategies into business operations. These developments present both challenges and opportunities for businesses navigating this dynamic landscape.
There are five key trends that will define the corporate sustainability agenda in 2025. From adapting to new regulations to addressing biodiversity and carbon market developments, these themes highlight the critical areas of focus for businesses striving to lead in sustainability.
Adapting to a complex regulatory landscape
The regulatory environment has become increasingly intricate, with significant advancements in mandatory and voluntary sustainability frameworks. EU regulations such as the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), Deforestation Regulation (EUDR), and the Green Claims Directive (GDC) are setting rigorous new standards for transparency, integrity, and accountability.
The CSRD, now in its first year of active reporting, requires large public-interest entities to submit inaugural disclosures for 2024. For many companies, this has exposed significant gaps in their existing sustainability reporting systems which are inadequate in the face of the granular demands of these frameworks, particularly in areas like Scope 3 emissions reporting.
Discussions in the EU about consolidating the CSRD, CSDDD and EU Taxonomy into a single ESG reporting framework reflect a deeper tension. While streamlining reporting requirements may reduce administrative burdens, there is concern that this approach could dilute the targeted effectiveness and specificity of each regulation.
Adding to the regulatory challenge, the Science Based Targets initiative (SBTi) will review its Corporate Net Zero Standard this year. The review is expected to intensify scrutiny on interim targets and implementation plans, creating a divide between early movers with actionable strategies and those who are waiting for guidance.
Further shaping the standards landscape, the International Organization for Standardization’s (ISO) forthcoming Net Zero Standard, expected to launch at COP30, will mark another significant development in 2025. This will be ISO’s first international standard providing requirements for the net zero transition, developed through collaboration with thousands of experts across more than 170 countries. The development process brings together voices from business, research institutions, and environmental organisations – including key players like the GHG Protocol and SBTi.
The standard takes a comprehensive approach, prioritising circular practices and full-scope emissions reductions, while setting clear boundaries around offsetting practices. As the draft enters its consultation phase this year, with both member and public review periods, it promises to deliver a robust framework that will help organisations validate and strengthen their net zero commitments.
The convergence of these developments underscores the increasing maturity and rigour of climate action frameworks. For businesses, success in this evolving landscape requires robust data systems and a proactive approach to compliance – treating it as an opportunity to enhance ESG performance and align with global standards.
Addressing data complexity
The ability to collect, validate and analyse sustainability data has become critical in meeting the demands of modern ESG frameworks. Yet many organisations continue to struggle with data granularity and complexity – particularly in the context of Scope 3 emissions, which encompass indirect emissions across supply chains.
Incomplete supplier data and inconsistent reporting practices remain significant hurdles. These issues not only impede compliance but also hinder efforts to identify and address inefficiencies within supply chains.
Advanced technologies, such as AI-driven analytics and digital platforms, are helping companies enhance their data accuracy and visibility. By enabling predictive modelling and energy optimisation, these tools allow companies to identify inefficiencies and reduce emissions at every stage of their value chains. However, these tools must be deployed thoughtfully to ensure they align with sustainability goals rather than exacerbating environmental challenges, such as increased energy consumption.
By investing in their data interoperability and systems, organisations can strengthen their operational resilience, ensure regulatory compliance, and build trust with stakeholders through greater transparency.
Unlocking the market potential of Article 6
Long-awaited agreement on Article 6 at COP29 should unlock demand among project investors, who had previously been put off by uncertainty about credit authorisation rules. In 2025, buyers have the green light to build portfolios of Article 6 compliant credits, including those eligible for CORSIA, which can now be supplied by six major carbon standards. These rules will also help countries to issue the letters of authorisation necessary to meet burgeoning demand.
Novel quality standards for Article 6.4 mean we should see the first credits transitioning from the Clean Development Mechanism (CDM) to the Paris Agreement Crediting Mechanism (PACM). UN experts will also work towards developing the first new PACM methodologies.
The Integrity Council for the Voluntary Carbon Market (ICVCM) will complete its first round of assessments to determine whether methodologies adhere to its Core Carbon Principles (CCPs). As companies increasingly seek to align their procurement policies with recognised quality frameworks, the market keenly anticipates decisions relating to REDD+, clean cookstoves, and Improved Forest Management (IFM) projects.
Deepening focus on nature and biodiversity
Looking ahead to COP30 in Brazil, nature and biodiversity are set to dominate the global sustainability agenda. Proposed initiatives like the Tropical Forest Forever Facility, aimed at funding conservation and restoration of tropical forests, underscore the urgent need for businesses to integrate nature and biodiversity into sustainability strategies.
Yet, despite the increasing focus, a gap remains in corporate action. A recent analysis of Fortune Global 500 companies revealed that while 94% have set carbon-related targets, only 12% have measurable biodiversity goals, and 15% have goals addressing forests. These numbers highlight the slow adoption of nature-positive approaches, even as the global community aligns on the critical importance of preserving natural ecosystems.
2025 offers a crucial opportunity for businesses to close the gap. Frameworks like the SBTi’s Forest, Land, and Agriculture Guidance (FLAG) offer clear pathways for addressing land-based emissions and promoting ecosystem restoration. By aligning with GHG Protocol guidance, businesses can integrate biodiversity goals into their broader climate strategies, ensuring alignment with the increasing demands of stakeholders and regulators alike.
As biodiversity takes centre stage at COP30, businesses have a unique opportunity to turn biodiversity risks into measurable opportunities, enhancing resilience, aligning with global priorities, and demonstrating environmental stewardship.
Turning ambition into action
In this critical year, the scale and speed of change needed to stay ahead of the curve is accelerating. Transition planning has revealed certain hurdles, prompting a recalibration of targets and roadmaps to remain realistic and achievable. Many companies have set ambitious net zero targets, but transition plans often lack the actionable detail needed to inspire confidence and deliver results.
To navigate these challenges, businesses need strong governance, clear accountability structures, and practical guidance. Recent research by EcoAct’s parent company Schneider Electric Sustainability Business, in collaboration with Women Action Sustainability (WAS), based on insights from over 60 business leaders across diverse industries and regions, reveals that while 38% of companies have developed climate adaptation plans, only 6% have fully implemented them, and just 12% can effectively quantify their financial exposure to physical climate risks.
These gaps highlight the need for more detailed planning and execution to build resilience and meet global climate goals.
In 2025, businesses have an opportunity to recalibrate their strategies and move from ambition to action. Companies with credible transition plans will not only meet regulatory demands but also strengthen their long-term viability in a rapidly decarbonising economy.
What does sustainability leadership mean in 2025?
As 2025 progresses, the demands on corporate sustainability strategies will continue to grow. From navigating regulatory complexity to integrating biodiversity into planning, organisations must demonstrate resilience and leadership to thrive in this transformative year.
True sustainability leadership requires more than compliance – it demands tangible action, collaboration, and alignment with global priorities. Companies that rise to these challenges will be better positioned to navigate the complexities of a rapidly changing world while contributing to necessary global climate action.
The time to act is now.
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