The S&P Global 2025 Sustainability Trends Report highlights 10 key megatrends shaping the future of sustainability strategies globally. From climate finance to AI and biodiversity, these trends underline the complex interplay of policy, market forces, and innovation driving change. Key insights: • Policy & geopolitics: 2024 election outcomes in over 60 countries will influence global sustainability and energy strategies, with geopolitical shifts testing corporate resilience. • Energy transition: Global energy demand continues to grow, driven by data centre expansion and technology adoption, complicating the path to decarbonisation. • Physical climate risks: Only 1 in 5 companies has an adaptation plan to address physical climate risks, despite worsening climate hazards and tightening disclosure standards. • Climate finance: Emerging markets and developing countries face a $3 trillion annual funding gap by 2035, requiring scaled-up private capital mobilisation. • Carbon markets: Agreements on Article 6 of the Paris Agreement will clarify rules and drive investment in carbon markets globally. [blog: covers the remaining points] • Nature & biodiversity: Latin America leads biodiversity commitments, with a high proportion of companies pledging net positive impacts and no deforestation. • Supply chain sustainability: Approximately only 17% of companies screen suppliers for ESG risks, highlighting a significant gap in sustainable supply chain management. • As developed nations decarbonize, emerging markets face challenges balancing affordable energy access with low-carbon development. • AI's dual role: AI adoption is projected to more than double electricity demand in data centres by 2029, complicating net-zero ambitions. • Sustainability reporting: The two leading standard-setters are GRI and SASB and 2025 marks the first year of reporting under the EU’s CSRD, promoting double materiality. Read the full summary here: https://lnkd.in/eaxkHGPc Explore the full report here: https://lnkd.in/evAqEUge #sustainability #climatefinance #sustainabilityreporting #esg #nossadata
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Read more: https://lnkd.in/dirR32hC Top Ten ESG and Sustainability Trends for 2025 As we move towards 2025, several key trends are shaping the future of ESG and sustainability. Here is what to watch for: Enhanced Regulatory Frameworks: Expect increased regulatory scrutiny on ESG disclosures, with frameworks like the EU’s CSRD and updates from the SEC driving transparency and accountability. Climate Adaptation and Resilience: Companies will invest more in infrastructure and strategies to withstand extreme weather events and address the health impacts of climate change. Growth of the Voluntary Carbon Market: With new integrity guidelines, the VCM will grow substantially, fostering innovation in carbon sequestration and project development. AI and Technology in ESG Reporting: AI will revolutionise ESG data collection and reporting, improving accuracy and enabling real-time insights. Increased ESG Litigation: Companies will face more litigation over greenwashing and unmet environmental commitments, highlighting the need for robust and transparent ESG frameworks. ESG in Supply Chain Management: Greater scrutiny will be placed on supply chain sustainability, necessitating ethical sourcing and comprehensive reporting. Corporate Accountability for Climate Action: Transparent reporting on net-zero targets will be critical, with pressure to align corporate actions with commitments. Sustainable Finance and Investment: The financial sector will innovate with new sustainable finance products, integrating ESG criteria into investment decisions. Health and Climate Nexus: The impact of climate change on public health will gain prominence, with companies addressing issues like water access and food security. Biodiversity and Natural Capital: Businesses will focus on biodiversity conservation and sustainable management of natural capital, integrating nature-based solutions into their operations. These trends highlight the evolving landscape of ESG and sustainability, driven by regulatory changes, technological advancements, and a growing emphasis on transparency. #ESG #Sustainability #ClimateAction #CorporateResponsibility #GreenFinance #SustainableInvesting #AI #Biodiversity #SupplyChain #Regulation #2025Trends #FutureOfWork #SustainableBusiness
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Insightful read on the evolving ESG and sustainability landscape! The focus on actionable trends highlights the urgency and opportunity for businesses to step up...
Read more: https://lnkd.in/dirR32hC Top Ten ESG and Sustainability Trends for 2025 As we move towards 2025, several key trends are shaping the future of ESG and sustainability. Here is what to watch for: Enhanced Regulatory Frameworks: Expect increased regulatory scrutiny on ESG disclosures, with frameworks like the EU’s CSRD and updates from the SEC driving transparency and accountability. Climate Adaptation and Resilience: Companies will invest more in infrastructure and strategies to withstand extreme weather events and address the health impacts of climate change. Growth of the Voluntary Carbon Market: With new integrity guidelines, the VCM will grow substantially, fostering innovation in carbon sequestration and project development. AI and Technology in ESG Reporting: AI will revolutionise ESG data collection and reporting, improving accuracy and enabling real-time insights. Increased ESG Litigation: Companies will face more litigation over greenwashing and unmet environmental commitments, highlighting the need for robust and transparent ESG frameworks. ESG in Supply Chain Management: Greater scrutiny will be placed on supply chain sustainability, necessitating ethical sourcing and comprehensive reporting. Corporate Accountability for Climate Action: Transparent reporting on net-zero targets will be critical, with pressure to align corporate actions with commitments. Sustainable Finance and Investment: The financial sector will innovate with new sustainable finance products, integrating ESG criteria into investment decisions. Health and Climate Nexus: The impact of climate change on public health will gain prominence, with companies addressing issues like water access and food security. Biodiversity and Natural Capital: Businesses will focus on biodiversity conservation and sustainable management of natural capital, integrating nature-based solutions into their operations. These trends highlight the evolving landscape of ESG and sustainability, driven by regulatory changes, technological advancements, and a growing emphasis on transparency. #ESG #Sustainability #ClimateAction #CorporateResponsibility #GreenFinance #SustainableInvesting #AI #Biodiversity #SupplyChain #Regulation #2025Trends #FutureOfWork #SustainableBusiness
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It was a pleasure speaking with Yusuf Khan at The Wall Street Journal about Bain & Company's latest global report, "The Visionary CEO's Guide to Sustainability 2024." Many companies have set ambitious goals when it comes to climate action and ESG progress in recent years, and they are now becoming more realistic with target-setting, recognizing how difficult and costly it is to actually decarbonize. Our research has shown that while sustainability may be temporarily surpassed by other major challenges on the corporate agenda, such as AI, inflation, or geopolitics, it's still a growing priority for customers and consumers. Read more in the article: https://lnkd.in/eWkMhPFE #Sustainability #ClimateAction #ConsumerTrends
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2024 MSCI Sustainability and Climate Trends to Watch 🌍📊 On #EarthDay, we wanted to provide an overview of critical #Sustainability and climate considerations and trends for 2024. These issues' pressing urgency and relevance continue to influence global policies and business strategies, with 2023 virtually certain to go down as the hottest year on record (so far). 🌱🌐 MSCI Inc.'s shift from "ESG Report" to "Sustainability and Climate Trends to Watch" underscores the necessity for precise definitions and responsibilities within sustainability frameworks. This change highlights the challenge of avoiding overly broad regulations that can stifle clarity and action. 📝🔍 This report discusses several key trends, such as the utilization of #AI in combating climate change, showcasing technology's evolving role in sustainable practices. Issues like forced labor and #deforestation, once relegated to ethical considerations, are suddenly turning up as regulatory risks with serious financial implications. 🤖🌿 How can businesses effectively integrate these evolving technologies, such as AI, not only to comply with new environmental regulations but also to increase their sustainability standards? 💬 #ClimateAction #NetZero #Decarbonisation #EnvironmentalImpact #ClimEase
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🌍 Sustainability and Climate Trends to Watch for 2025 🌍 In today's uncertain world, sustainability data is key to identifying competitive, profitable, and less risky companies with higher long-term returns. The energy transition, climate-related events, and AI adoption present unprecedented opportunities for investors. Key Indicators: 🔸 Energy System Transformation: Investment prospects in low-carbon energy, green transportation, and energy storage solutions. 🔸 Voluntary Carbon Markets: Critical funding for decarbonization in developing countries. 🔸 Climate-Change Adaptation Finance: Investable opportunities for the private sector. 🔸 Material Social Risks: Companies managing workforce issues, supply chains, product safety, and community impact outperform their peers. 🔸 Shareholder Rights: Growing momentum for majority voting to influence corporate behavior and drive sustainable value creation. Investors can identify better-managed, resilient companies by focusing on material social risks like workforce issues and supply chains. Do not miss the growing momentum for shareholder rights to drive sustainable value creation! 👉 Source: MSCI #Sustainability #Investment #EnergyTransition #ClimateChange #SustainableFinance #ESG
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I found the 2025 Sustainable Investing Trends outlined by Morningstar Sustainalytics, one of the leading ESG research data firms in Europe and globally, to be highly informative. I greatly appreciate the organisation's content, as it consistently highlights and recommends concrete actions on decarbonisation, regulatory frameworks, and how governments and companies can begin implementing tangible measures to advance decarbonisation and climate resilience. This approach emphasises transforming productivity and governance capacities to address the new challenges of protecting the planet, the environment, and humanity. Among the key highlights I found most relevant in the report are insights on ESG regulations, transition investing, sustainable bonds, biodiversity finance expansion, and the ethics and risks associated with AI. 1. ESG Regulation Challenges: The year 2025 will be pivotal for ESG (Environmental, Social, and Governance) regulations, with the EU focusing on refining frameworks like the Corporate Sustainability Reporting Directive (CSRD) and responding to criticism about compliance costs and the burden of reporting. Meanwhile, the US may face ESG rollbacks under political shifts, leading to potential "greenhushing." 2. Transition Investing: Investors are shifting from encouraging companies to set decarbonization targets to demanding tangible actions and scrutinizing transition plans. Emphasis will be placed on sectors critical to achieving net-zero emissions, with increasing investment in climate adaptation and resilience measures. 3. Sustainable Bonds: The issuance of green, social, sustainable, and sustainability-linked bonds (GSS+) is expected to surpass $1 trillion in 2025, driven by lower interest rates and new EU Green Bond Standards. Key trends include financing enabling activities, nuclear energy projects, and addressing emissions in hard-to-abate sectors like steel and cement. 4. Biodiversity Finance Expansion: Biodiversity is becoming a major focus in sustainable investing, with innovative financial tools like biodiversity bonds and credits emerging. The Cali Fund, introduced at COP16, links corporate profits to biodiversity conservation, signalling a transformative shift in nature finance. 5. AI Ethics and Risks: While AI technologies hold significant potential for advancing sustainability, their rapid adoption raises environmental, social, and governance risks. Key concerns include high energy consumption, data privacy issues, biases, misinformation, and workforce disruptions. The divergence in global AI regulations, particularly between the US and EU, may exacerbate these challenges. For more information check the report!!. #2025SustainabilityInvesmentTrends #ESG #Decarbonization #Regulations #TransitionInvesting #SustainableBonds #BiodiversityFinance #AIEthics
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Top Ten ESG and Sustainability Trends for 2025 As we move towards 2025, several key trends are shaping the future of ESG and sustainability. Here is what to watch for: Enhanced Regulatory Frameworks: Expect increased regulatory scrutiny on ESG disclosures, with frameworks like the EU’s CSRD and updates from the SEC driving transparency and accountability. Climate Adaptation and Resilience: Companies will invest more in infrastructure and strategies to withstand extreme weather events and address the health impacts of climate change. Growth of the Voluntary Carbon Market: With new integrity guidelines, the VCM will see substantial growth, fostering innovation in carbon sequestration and project development. AI and Technology in ESG Reporting: AI will revolutionise ESG data collection and reporting, improving accuracy and enabling real-time insights. Increased ESG Litigation: Companies will face more litigation over greenwashing and unmet environmental commitments, highlighting the need for robust and transparent ESG frameworks. ESG in Supply Chain Management: Greater scrutiny will be placed on supply chain sustainability, necessitating ethical sourcing and comprehensive reporting. Corporate Accountability for Climate Action: Transparent reporting on net-zero targets will be critical, with pressure to align corporate actions with commitments. Sustainable Finance and Investment: The financial sector will innovate with new sustainable finance products, integrating ESG criteria into investment decisions. Health and Climate Nexus: The impact of climate change on public health will gain prominence, with companies addressing issues like water access and food security. Biodiversity and Natural Capital: Businesses will focus on biodiversity conservation and sustainable management of natural capital, integrating nature-based solutions into their operations. These trends highlight the evolving landscape of ESG and sustainability, driven by regulatory changes, technological advancements, and a growing emphasis on transparency. Read more: https://lnkd.in/dirR32hC #ESG #Sustainability #ClimateAction #CorporateResponsibility #GreenFinance #SustainableInvesting #AI #Biodiversity #SupplyChain #Regulation #2025Trends #FutureOfWork #SustainableBusiness
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It has been a year for ESG. Andrew Winston does a great job summarizing the year, leading us to some strong considerations. Building on his recap: - The global elections will have an impact, and it may be the influence of the US that sways foreign centrist policies away from climate. - When you live by repuatational risk, you die by it. ESG issues are material, start there. - We need to get out of reporting and back to action, especially cross-company collaborations. - Climate tech isn’t dead. Can we just stop saying things are dead? - AI and sustainability: Are companies bringing these topics together to rebuild their businesses sustainably, solving other issues and trading off with emissions, or hitting the wall of material decarbonization and giving up? Check out his full read here: https://lnkd.in/eHbz_jxk
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🌏 Australia's largest companies are leading the charge in climate action, with half of the nation’s biggest companies already having net-zero emissions plans. On a global scale, over 9,000 companies are actively working to reduce greenhouse gas emissions and set ambitious net-zero targets. 📉 Is your organization ready to join this global movement? Unlock your company's potential in environmental, social, and governance (#ESG) initiatives with our comprehensive Gap and Opportunities Analysis. Designed for businesses committed to making a substantial social impact, our service merges expert consultancy with cutting-edge #GenAI technology to provide a swift and insightful analysis of your ESG readiness, revealing key opportunities for improvement. What You Get: - ESG Readiness Scorecard: We start by evaluating your current ESG performance with our proprietary scorecard, identifying strengths and areas for growth. - Data Review and Analysis: Using our advanced ChatESG tool, we analyze your data to better understand your ESG practices and pinpoint specific gaps. - Executive Interview: A 45-minute interview with a key executive or CEO is crucial to gaining insight into your company’s strategic vision and ESG goals. - Comprehensive Report: We compile our findings into a detailed report outlining your ESG readiness, highlighting actionable opportunities, and recommending next steps to enhance your ESG journey. Ready to enhance your ESG strategy? Find out more: ESG&I. #ClimateAction #Sustainability #CarbonReduction #EcoFriendly #Australia #ESG
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Investing in IT for sustainability is anticipated to grow across global markets. Gain insights on investing in IT and AI, the perception gap problem, climate resilience and the top challenges facing business leaders today.
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