S&P Global's Top 10 sustainability trends to watch in 2025 summarised

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.

• 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.

Explore the full report here: https://www.spglobal.com/esg/insights/2025-esg-trends 

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