As the Solstice approaches, the Greenheart team has given some thought to what 2025 might bring for the world of sustainability. Tom chats through the headlines in this short video, but if you want a more considered view, read on…
There is a general feeling from companies we speak to that the macroeconomic context will remain very challenging. Uncertainty is the only certainty these days it seems, something markets don’t like and companies find it hard to budget for. Coupled with commodity inflation in some areas, continued pressure on margins seems to be the expectation.
Against that context, the pressure – and incentive – on companies to integrate sustainability in their models ramps up:
From desirable to essential: a year of preparation
That’s the overarching direction we see sustainability taking next year, for a number of reasons:
- Despite some softening in the EU, ESG reporting regulations are tighter now than ever before and, on the European side of the Atlantic at least, we expect this to remain the case. Implementation dates for CSRD and others draw closer, meaning 2025 will be a year of preparation. As one of our client contacts said, “there’s nowhere to hide”, and our experience is that many businesses are behind where they need to be;
- Stakeholder pressure to demonstrate sustainability progress continues and we’re hearing this particularly in the context of suppliers to large B2B clients. As well as expecting strategies and targets, customers will increasingly look for evidence of progress as the gap between commitment and action becomes higher profile. Those serving the public sector are likely to come under most pressure, so will need to ensure their targets are matched with properly actionable roadmaps on themes like decarbonisation and biodiversity impact;
- The tangible effects of climate change are now really being felt at bottom line level, particularly in sectors like food/farming, textiles, travel etc. This will have to drive sustainability into the strategic awareness of leadership teams – onto the risk register and into strategic planning like never before. Companies who are thinking ahead will be collaborating within their sector and value chains to find the solutions, recognising a shared challenge at this scale needs a shared response not just a delegation of responsibility. As Jon Calland, Head of Sustainability & External Affairs at leading rice brand Tilda put it to me: “the farming community…need more support to adapt to climate change; they are at the coal face”.
What else?
In markets where deregulation is expected (e.g. the USA) this has in the past been a trigger for progressive companies to lean into voluntary frameworks like B Corp. This may happen again as businesses seek to demonstrate leadership where policy is falling short.
On the subject of B Corp, 2025 is the year the new standards will land. They will most likely apply to any company whose submission date for certification, or re-certification, falls on or after 1 January 2026 so – as above – next year will need to be a year of preparation. Everything you need to know can be found here.
The sustainability experts in the Greenheart team will continue to monitor developments. Our focus is on supporting businesses and empowering teams as they prepare for changes such as these.
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