2025 isn’t just another lap around the sun—it’s shaping up to be a pivotal year for ESG around sustainability, innovation, and leadership. So, what should we all be keeping our eyes on as we move into this exciting chapter? 2025 is set to be a game-changing year for businesses aiming to lead on sustainability, innovation, and responsible corporate governance issues. From tighter, carbon dioxide regulations to the evolving role of ecosystem restoration, companies must align their strategies with new ESG expectations to stay competitive. In this post, we dive into two distinct perspectives from our ESG advocate SkootEco Co-Founder’s Greg Gormley and Mark Stringer aka "Strings" on the key trends shaping 2025.
Strings's 5 Things to Watch in 2025
2025 isn’t just another year—it’s a pivotal moment in the evolution of ESG. As co-founders of SkootEco, a B-Corp dedicated to sustainability, we’ve identified five major trends that businesses should be paying attention to as we move into this transformative year. Here are Strings forecasts for the future:
1. Sustainability Will Drive Growth (Not Just Ticking Boxes)
Sustainability is no longer a "nice-to-have" aspect of business strategy. It’s a growth engine. From impact-driven investments to fostering customer loyalty, companies that fully integrate ESG principles into their DNA will outperform their competitors. Sustainability isn’t about filling out reports; it’s about tangible actions that contribute to growth.
2. Carbon Legislation Is Getting Serious
Governments, investors and industry are tightening the reins on greenwashing. In 2025, stricter regulations cut emissions and will hit businesses, particularly in supply chains, pushing companies to demonstrate real carbon reductions or face consequences. Businesses with solid carbon reduction plans will have a competitive edge when it comes to securing contracts and meeting sustainability mandates.
3. AI for Good (and for Accountability) but with the Human Touch
AI tools will play a significant role in helping businesses track their own carbon emissions, dioxide and make carbon emissions elsewhere, optimize resource usage, and drive transparency. But Strings emphasises that AI must remain human-centric. It’s about using technology to simplify processes and make them clearer while ensuring that businesses can still engage with their data in a meaningful and human way.
4. People Over Policies
The social side of ESG—the "S"—is taking centre stage. Companies, countries, sectors, countries and sectors that prioritise employee well-being, human rights, diversity, and inclusion will stand out in competitive markets. By embedding sustainability into company culture, organisations can attract and retain top talent, ensuring a thriving, engaged workforce.
5. Beyond Trees: Restoring Ecosystems – Local and Global
Trees are essential, but in 2025, the focus of climate action will shift to ecosystem restoration initiatives. Nature-based solutions like mangrove restoration and biodiversity projects will move from a "nice idea" to an essential practice. Companies will be expected to contribute to real restorative impact on local communities, not just offset their carbon footprint.
In summary, 2025 calls for countries, society, governments and businesses to embrace bold action and lead with purpose. From sustainability being the driver of growth to a deeper focus on people and ecosystems, the evidence shows the year ahead offers endless opportunities for those ready to act.
Greg Gormley’s 5 Key Trends to Watch in 2025
Greg Gormley, as an Accountant, shares his insights on the top trends that will define ESG in 2025. According to Greg, transparency, data rigour, and new compliance strategies will be central to ESG success.
1. ESG: It’s All About Accountability
Gone are the days of vague ESG promises. In 2025, businesses will be required to present auditable ESG reports just like their financial statements. To succeed, companies need to treat ESG data with the same precision and transparency as they do with financial performance on their balance sheets.
2. Carbon Management Will Go Beyond Scope 1 and 2
Direct, gas emissions (Scope 1) and energy usage (Scope 2) reporting won’t be enough in the climate action by 2025. Scope 3 emissions—those from the supply chain—will come under more scrutiny. Greg advises businesses to focus on high-impact areas of methane emissions in their supply chains and encourage employees to collaborate with partners to create joint carbon reduction strategies.
3. Cash Flow Meets Carbon Flow
Sustainability-linked finance will continue to rise, especially for mid-sized companies seeking to grow. In 2025, businesses with strong, governance and ESG credentials will benefit from better loan terms and attract competitive funding. Strong governance and ESG performance could lower investment and borrowing costs, making investing in it a valuable growth strategy.
4. The Rise of Cost-Efficient Compliance
As ESG standards and regulations get more complex, businesses will need cost-effective tools to stay compliant without sacrificing margins. Smarter ESG solutions that simplify reporting and governance and save time will be in high demand. This will allow businesses to focus their energy on making a real impact on local communities and society, rather than navigating red tape.
5. Measuring Social Impact Will Become Quantifiable
Social responsibility isn’t just a buzzword anymore. Investors and stakeholders want proof. Metrics like diversity data for employees, staff well-being scores, and retention rates for employees will become key performance indicators for businesses and investors aiming to showcase their social impact. Greg encourages companies to integrate these social aspects and metrics into their quarterly reports to stand out.
In Greg’s view, 2025 is the year that businesses can no longer just tell investors their ESG story—they must show the numbers behind their claims. Companies that bring the same level of rigour to their corporate governance, social responsibility and sustainability reports as they do to their financials will lead the way in the future.
Strings's 5 Things to Watch in 2025
2025 isn’t just another year—it’s a pivotal moment in the evolution of ESG. As co-founders of SkootEco, a B-Corp dedicated to sustainability, we’ve identified five major trends that businesses should be paying attention to as we move into this transformative year. Here are Strings forecasts for the future:
1. Sustainability Will Drive Growth (Not Just Ticking Boxes)
Sustainability is no longer a "nice-to-have" aspect of business strategy. It’s a growth engine. From impact-driven investments to fostering customer loyalty, companies that fully integrate ESG principles into their DNA will outperform their competitors. Sustainability isn’t about filling out reports; it’s about tangible actions that contribute to growth.
2. Carbon Legislation Is Getting Serious
Governments are tightening the reins on greenwashing. In 2025, stricter emissions regulations will hit businesses, particularly in supply chains, pushing companies to demonstrate and achieve real carbon emissions reductions or face consequences. Businesses with solid carbon reduction plans will have a competitive edge when it comes to securing contracts and meeting sustainability mandates.
3. AI for Good (and for Accountability) but with the Human Touch
AI tools will play a significant role in helping businesses track their carbon dioxide and emissions, reduce waste, optimize resource usage, and drive transparency. But Strings emphasises that AI must remain human-centric. It’s about using technology to simplify processes and make them clearer while ensuring that businesses can still engage with their data in a meaningful and human way.
4. People Over Policies
The social side of ESG—the "S"—is taking centre stage. Companies, countries and sectors that prioritise employee well-being, diversity, and inclusion will stand out in competitive markets. By embedding sustainability into company culture, organisations can attract and retain top talent, while lower costs and ensuring a thriving, engaged workforce.
5. Beyond Trees: Restoring Ecosystems – Local and Global
Trees are essential, but in 2025, the focus will shift to ecosystem restoration. Nature-based solutions to carbon footprints like mangrove restoration and biodiversity projects will move from a "nice idea" to an essential practice. Companies responsible will be more responsible and expected to contribute to real restorative impact on society, not just offset their carbon footprint.
In summary, 2025 calls for businesses to embrace bold action and lead the world with purpose. From sustainability initiatives as being the driver of growth to a deeper focus on people and ecosystems by business leaders, the year ahead offers endless opportunities for those ready to act.
As we enter 2025, businesses must prepare to adapt to the changing landscape of ESG. Focusing on growth, accountability, people, technology, and tangible impact. The green year is now. It is the time to embrace bold actions that integrate sustainability into every aspect of your business. The future of leadership is not only about adapting to new regulations but also about seizing the opportunity to make a positive, lasting impact on our planet and society.
What are your thoughts on these trends? Are you ready to lead the energy world in 2025? Let us know how you’re preparing the world for the changes ahead.
Frequently Asked Questions
What are ESG factors?
ESG factors encompass Environmental, Social, and Governance criteria and principles that evaluate how a company incorporates sustainability and ethical practices into industrial processes and its operations. Understanding these factors is essential for assessing a company or industry's long-term viability and societal impact.
How do ESG criteria benefit businesses?
Implementing ESG criteria benefits businesses by minimising risks, reducing costs, enhancing reputation and shareholder rights, and ultimately, financial performance by driving higher profits while attracting new customers and investors.
What is the importance of Scope 3 emissions?
Addressing Scope 3 (supply management chain) emissions is essential for comprehensive environmental responsibility, as they represent the indirect emissions from a company's supply management chain and industrial processes. By understanding and mitigating the net positive effects of these emissions, organisations can significantly enhance their sustainability efforts.
How can businesses ensure data accuracy in ESG reporting?
To ensure data accuracy in ESG reporting, businesses must have internal controls, prioritise transparency with stakeholders and implement reliable data collection and management methods, thereby building trust with stakeholders and ensuring regulatory compliance.
What is sustainability-linked finance?
Sustainability-linked finance is a financial mechanism where loans and investments are tied to specific environmental, social, and governance (ESG) performance targets, incentivising businesses to achieve or meet their sustainability objectives in exchange for improved funding conditions and investment. This approach fosters accountability and drives progress towards sustainability goals.
