I N D U S T R Y I N T E L L I G E N C E

ustainability issues have

Highlights have included UK and US elections influencing the future of climate action , the EU ’ s Corporate Sustainability Reporting Directive coming into effect , and COP29 concluding last month with a bittersweet deal .

A new year will bring fresh impetus around sustainability issues , particularly

as businesses set out their agenda for 2025 . However , while some trends will have staying power and play a significant role in shaping the sustainability landscape , others will fade away . Here ’ s what to expect in the next 12 months .

Trends that will be left behind

Sustainability as an AOB

The days when companies could treat sustainability as a ‘ nice to have ’ are long gone . Today , having a robust sustainability strategy is a fundamental part of corporate social responsibility and a business ’ s DNA . It ’ s not just about protecting the planet ; it ’ s also about enhancing growth .

This year , 69 % of CEOs described sustainability as a growth opportunity , reflecting Gartner ’ s belief that it has become a top priority in the boardroom .

Strengthening consumer sentiment , business imperatives such as investor and stakeholder demands , and changing supply chain expectations are likely to explain this push . This is especially the case as UK sustainability budgets are projected to grow at an annual rate of 12 % from 2022 to 2025 , an increase from 8 % between 2018 and 2020 .

Sustainability efforts lacking digital integration

Traditional sustainability models that fail to utilise advanced technologies such as AI are becoming obsolete . Digitalisation is becoming vital , not only for adhering to strict reporting requirements but also for yielding effective outcomes today and in the future .

Talk around AI will shift to action and implementation as it becomes an essential addition to corporate sustainability efforts . IBM reports that 90 % of executives believe AI will enhance sustainability goals , and businesses are being urged to invest in tools to lower emissions and achieve climate targets .

As companies face increased scrutiny of their ESG objectives , incorporating technology into sustainability initiatives will be essential for staying on course .

Voluntary ESG commitments without financial returns

Many businesses will continue to feel themselves squeezed in 2025 , with tightening budgets and increased costs . Two in five businesses with over 10 employees expect staffing costs to rise over the next three months , up 13 % points from late August , according to the ONS .

Because of these economic pressures , companies will increasingly prioritise ESG strategies that offer strong ROI and operational efficiencies over sustainability initiatives focused only on compliance or reputation . Strategies will include sustainable supply chain practices that reduce logistics costs and carbon footprints , as well as waste management programs that minimise unused resources and promote a circular economy .

Other strategies include cost and carbon savings within IT procurement . Remanufactured laptops , up to 40 % cheaper than new , will help companies achieve ESG goals while delivering performance equal to or better than new models .

Trends that will last into 2025 and beyond

Tightening regulations

Sustainability regulations will be tightened in 2025 , meaning businesses must be on top of their game to avoid the risk of hefty fines and reputational damage .

Large businesses must be aware of the Corporate Sustainability Reporting Directive , which requires them to disclose their ESG impacts for 2025 . This directive will drive accountability and transparency in how companies report on sustainability , encouraging them to ‘ walk the talk ’.

It is also important to consider the revised Carbon Border Adjustment

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