As 2025 takes shape, businesses are at a critical juncture in their sustainability journeys. Regulatory changes are raising the bar on reporting requirements, while increasing scrutiny on climate goals and the urgent need to integrate nature-positive strategies are transforming the corporate landscape.
Stuart Lemmon, CEO of EcoAct and global head of practices at Schneider Electric Sustainability Business, identifies key trends that will shape corporate sustainability in 2025 for businesses.
Rising to the challenge of complex regulatory landscapes
The sustainability regulatory landscape is shifting rapidly, with ambitious frameworks demanding greater transparency and accountability. EU regulations such as the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), Deforestation Regulation (EUDR) and Green Claims Directive (GCD) are setting new measuring and reporting standards.
The CSRD, now in its first year of active reporting, requires large public-interest entities to submit inaugural disclosures for FY2024. This milestone has exposed significant gaps in companies’ preparedness. Despite years of ESG efforts, many organisations lack the systems needed to meet these rigorous standards, particularly for Scope 3 emissions and supply chain data.
Meanwhile, the Science-Based Targets initiative (SBTi) will review its Corporate Net-Zero Standard in 2025, intensifying scrutiny on interim targets and implementation plans. Adding to this complexity, the upcoming ISO Net-Zero Standard, set for launch at COP30, will further shape sustainability practices. This global standard, developed with input from key organisations like the GHG Protocol and SBTi, will set clear parameters around carbon offsets and emphasise circular economy practices. Public consultation is expected to refine its scope, ensuring relevance across sectors.
Against this evolving landscape, early adopters embedding science-based strategies will be better positioned to adapt. Treating compliance as an opportunity rather than a burden allows businesses to integrate sustainability into operations, gaining a competitive advantage in an increasingly regulated market.
Data integrity: The backbone of sustainability success
Today’s sustainability challenges make robust and accurate data essential for decision-making. However, many businesses still struggle to meet the granular reporting demands of regulations like the CSRD.
Scope 3 emissions, covering indirect emissions across supply chains, remain a significant hurdle. Companies often face incomplete supplier data, inconsistent reporting practices, and difficulties in quantifying their full environmental impact. Addressing these gaps requires rethinking how data is collected, verified, and analysed.
Advanced technologies, including AI-driven analytics and digital supply chain platforms, are helping businesses improve data accuracy and visibility. These tools enable organisations to track progress, identify inefficiencies, and ensure compliance with increasingly rigorous standards. However, businesses must carefully consider the ecological footprint of these solutions, particularly their energy consumption.
For companies that overcome these challenges, the rewards go beyond compliance—they include enhanced operational resilience and stronger stakeholder trust.
Closing the gap between recognition and action in nature and biodiversity
With COP30 set to take place in Brazil, nature and biodiversity have climbed to the top of the global sustainability agenda. The conference is expected to amplify calls for businesses to prioritise nature-positive actions, accelerating progress towards the 30×30 goal of protecting 30% of the world’s land and oceans by 2030.
Frameworks like the Science-Based Targets Network (SBTN) and the Forest, Land, and Agriculture (FLAG) Guidance are helping companies integrate biodiversity into sustainability strategies. However, the gap between ambition and action remains stark. While 94% of Fortune Global 500 companies have carbon-related targets, only 12% have measurable biodiversity goals.
Embedding biodiversity into corporate strategies requires addressing land use, deforestation, and ecosystem impacts alongside emission reductions. It demands collaboration across value chains and investment in initiatives like regenerative agriculture and ecosystem restoration. Businesses that prioritise biodiversity not only contribute to environmental resilience but also position themselves as leaders in a rapidly evolving sustainability landscape.
Turning transition plans into action
Achieving net-zero targets requires a shift from goal setting to implementation. Transition plans often lack actionable details, hindering progress. Companies must adopt science-based targets, establish clear milestones, and create accountability structures.
Climate risks, both physical and transitional also need to be integrated into corporate strategies. Building resilience against these risks will allow businesses to future-proof their operations and remain competitive in a changing climate.
In 2025, companies have a critical opportunity to recalibrate their strategies and move from ambition to action. Collaboration, innovation, and a steadfast commitment to progress will be essential. Businesses that embrace these challenges will not only meet the demands of stakeholders but also contribute to a more sustainable and equitable global economy.
The road ahead: Leadership through action
2025 represents a transformative moment for corporate sustainability. Whether navigating complex regulations, improving data systems, or embedding biodiversity into planning, businesses face challenges—but also immense opportunities.
True leadership in sustainability isn’t about ticking boxes or meeting minimum standards. It’s about delivering tangible, impactful results that align with global priorities. Businesses that rise to the occasion will be better positioned to navigate the challenges ahead and contribute to necessary climate action.
The time for action is now.
