GLOBAL OUTLOOK ON SUSTAINABILITY
TRUSTED SUSTAINABILITY SCIENTISTS
GLOBAL REGULATORY FRAMEWORKS
EU Moves to Simplify Sustainability Reporting Law
The EU is preparing to introduce a simplified and consolidated framework for sustainability reporting, set to take effect in 2025. The proposal aims to merge various existing regulations, including the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation and the Corporate Sustainability Due Diligence Directive (CSDDD) into a single “omnibus” law.
UK FCA Extends Anti-Greenwashing Deadline
The FCA has decided to give companies a bit more time to adjust to its anti-greenwashing rules. Now, the FCA won’t fully enforce the ‘naming and marketing rules’ until April 2025
Sustainable Infrastructure Investments in the US
In the US, the continued rollout of the Inflation Reduction Act is expected to further accelerate sustainable infrastructure investments, renewable energy adoption and carbon capture initiatives.
CDP to Align Closer with EU Sustainability Reporting Standards (ESRS)
This alignment aims to reduce reporting complexity for businesses, enhancing transparency and consistency in sustainability reporting across Europe. These changes are set for early 2025.
EU to Review CBAM
Before the end of 2025, this review will assess expanding the scope of covered goods, accounting for indirect emissions, minimising impacts on developing countries and streamlining governance to enhance the mechanism’s effectiveness and global alignment.
ENERGY TRANSITION ACCELERATION
“Renewables are forecast to contribute 35% of the world’s electricity.”
Clean Energy Adoption
The global push toward clean energy will see significant strides in 2025. The International Energy Agency (IEA) predicts a doubling of EV sales, bolstered by advancements in battery technology and expanded charging infrastructure.
Innovation in Hydrogen Energy
Hydrogen energy is also gaining momentum, with several countries, including Japan and Germany, leading in green hydrogen projects to decarbonise heavy industries.
LEVERAGING TECHNOLOGY FOR SUSTAINABILITY
“Investment in UK climate tech rose by 7% in 2024.”
“UK-based companies now represent 22% of global investments in climate-focused AI technology.“
Tech-Driven Initiatives
Advancements in technology will influence sustainability initiatives in 2025, enabling smarter resource management and innovative climate adaptation strategies. The use of AI for sustainability solutions is expected to dominate the discourse. Already PwC reports in their annual ‘Global State of Climate Tech’ that UK investors have committed £2.4bn to domestic climate tech firms.
Sources: MSCI.org, PwC.com