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Executive summary
Executive summary
It’s a new year, but many sustainability professionals will feel like they’re facing similar challenges and priorities as last year. From political changes to a lack of resources, here’s a snapshot of a sustainability professional’s to-do list in 2025.
The backend of 2024 was certainly tumultuous. The cost of living crisis has been compounded by geopolitical uncertainty and the US election result has led some companies to change course on approaches to governance and sustainability.
The drumbeat of progress from events such as COP16, COP29, and the UN Plastics Treaty failed to deliver the required mechanisms and outcomes, so much so that discussions on biodiversity picked up again in February.
Businesses have also had to contend with a changing regulatory landscape. The EU’s Omnibus Simplification Package sounds good on paper – a simplified and streamlined approach to ESG reporting - but many feel it weakened the reporting requirements too much.
It’s never a dull moment in the sustainability space, and as our survey proved, sustainability professionals see plenty of challenges, but also lots of opportunity, as they deliver on their remits in 2025. Here’s a summary of what will be explored in this report.
Politics is disrupting ESG
Much of 2025 has been spent exploring the ramifications of changes in the political landscape. For all of Labour’s efforts to speed up the net-zero transition in the UK, the US election results have clearly disrupted the global ESG movement.
The early signs are indeed worrying. Donald Trump has pulled the US out of the Paris Agreement for a second time, starkly reducing the proportion of global GDP covered by national-level climate targets.
Following last November’s US election, Wells Fargo and several of its peers withdrew from the Net Zero Banking Alliance. This trend also impacted similar collaborative initiatives including the Net Zero Asset Managers initiative (NZAM), which in January suspended its activities as a result of the fallout.
As such, it is no surprise that businesses see political stability as the biggest macro/external disruptor facing the sustainability movement right now. A total of 36% of respondents listed it as the biggest challenge they face. The next biggest issue, climate disinformation, was cited by only 14%, equal to “an escalating climate crisis”. Cost of living, energy prices, and the skills gap are also emerging as key barriers disrupting the sustainability movement.
Proportion of respondents citing political instability as the biggest macro/external disruptor.
Short-termism is still the major internal challenge facing sustainability teams
The economic downturn experienced in the UK has hampered corporate efforts to accelerate climate action. For each Business Tracker, edie has asked its audience to rank the biggest micro challenge that is stifling efforts on ESG internally.
Short-term mindsets focused on profitability and stability are currently at odds with the long-term planning required for sustainability, as referenced by 30% of respondents. A lack of funding for ESG (20%) also means that sustainability practitioners feel unable to forge ahead with initiatives.
Policy and regulation and reporting and disclosure are also eating into the time that sustainability teams have to implement change, and rank high on the micro-challenges. Indeed, 70% of respondents list reporting and disclosure as either a “high” or “business critical” priority. The survey therefore suggests that ESG is stuck in a bit of a holding pattern focused on data and compliance while businesses wait for a less volatile market to operate in.
Proportion of respondents saying reporting and disclosure is a top priority.
Reporting can be done on time
Sustainability professionals are meant to be forward-looking by nature; analysing the next innovation and forging transition plans that will help businesses meet long-term goals. However, many sustainability practitioners spent 2024 looking back at the data in order to formulate reports and comply with legislation. 2025 looks to be no different based on the above statistics.
The alphabet soup of non-financial disclosure added some notable new frameworks (more on that in the Reporting segment of this report) and the recent EU Omnibus sought to streamline approaches to reporting and make it easier on businesses and sustainability teams. This survey started before the Omnibus changes were announced, and while less than half (44%) of respondents stated they had to comply with the Corporate Sustainability Reporting Directive (CSRD) many felt well-prepared to deliver reports to deadline requirements.
Regardless of the framework a business was reporting against, an overwhelming 86% believed that they would be able to comply with reporting requirements on time. With all the concerns that the EU Omnibus has simplified reporting requirements too much, this number may well be larger now than it was at the time of the survey.
Demand for climate innovation is growing
Late last year, edie announced the brand's acquisition of Springwise, the leading global media platform for innovations driving positive change. With the addition of Springwise to its portfolio, edie will offer business leaders a deep understanding of and connection to market-ready innovations helping them accelerate the transition to a net-zero, circular and equitable economy.
Despite the aforementioned funding challenges facing businesses, low-carbon innovation does remain relatively high on the agenda for business. When asked to state priorities for 2025 in relation to ESG, 35% of businesses stated that new technologies and innovations were a high priority, while 15% listed it as a “business-critical” priority. As such, half of businesses are currently exploring how new solutions and innovations can drive sustainability. For our next Sustainable Business Tracker, we’ll be exploring the role of AI in helping sustainability professionals meet their goals.
Almost half of chief executives are highly engaged with ESG
It is a common claim that some sustainability teams operate in silo, detached from the rest of the decision-makers within the business, and as businesses move from target setting to implementation, a top-down approach is crucial in ensuring governance structures are in place to act on sustainability.
edie polled its readers on the areas of the business that were most and least engaged with climate action. In terms of function, the chief executive is, on average, the most “highly engaged” at 48% - with a further 40% stating their chief executive was “somewhat engaged”. Refreshingly, just three respondents claimed their chief executive was “not at all engaged” with sustainability.
Additionally, the board is increasingly becoming involved with delivery metrics for sustainability. Our survey found that 37% of boards are highly engaged, while 48% are somewhat engaged.
In terms of function, the chief executive is, on average, the most “highly engaged” at 48% - with a further 40% stating their chief executive was “somewhat engaged”.
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