Following November’s COP29, 2025 looks to be another pivotal year for climate and sustainability action, bringing significant regulatory changes, advancing carbon markets, and a heightened focus on nature and biodiversity. Stuart Lemmon, CEO EcoAct (a subsidiary of Schneider Electric Sustainability Business), discusses the key trends shaping 2025’s climate and sustainability agenda – and what it means for businesses.
#1 Navigating the expanding regulatory landscape
The regulatory environment is becoming more complex, with significant advancements in mandatory and voluntary sustainability frameworks. EU regulations such as the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), Deforestation Regulation (EUDR), and the Green Claims Directive (GDC) are setting new standards for transparency, integrity, and accountability in measuring corporate sustainability progress.
The CSRD enters its crucial first year of active reporting in 2025, with large public-interest entities submitting their inaugural disclosures for FY2024. This regulatory acceleration is outpacing most companies’ readiness. Many organisations are discovering that their supposedly ‘mature’ sustainability reporting systems are inadequate to meet the granular data demands of these new frameworks.
Discussions in the EU about consolidating the CSRD, CSDDD and EU Taxonomy into a single ESG reporting framework reflect a deeper tension. While streamlining reporting requirements might seem appealing, there is a risk of diluting the targeted effectiveness and specificity that these separate regulations were designed to provide.
As the Science Based Targets initiative (SBTi) prepares to review its Corporate Net-Zero Standard in 2025, companies face a strategic decision point. Companies delaying action in anticipation of the updated guidance may fall behind, whereas early movers who have built science-based reduction strategies and are already implementing robust climate transition plans will be better positioned to adapt. The review is expected to intensify scrutiny on implementation plans and interim targets, raising the stakes for preparedness.
Success in this evolving landscape will depend on robust data infrastructure that can adapt to new requirements while maintaining data integrity. Companies that invest in strengthening their reporting systems now, particularly in supplier data collection and verification capabilities, will be better equipped to navigate future regulatory changes. At EcoAct, we see these challenges as an opportunity to build more resilient and forward-looking sustainability strategies.
#2 Addressing data complexity
As the scale and complexity of sustainability data grow, so too do the challenges businesses face in managing them effectively. Regulations like the CSRD demand far more than basic compliance—they require supply chain visibility, rigorous data validation, and actionable insights. For many organisations, these demands have highlighted critical gaps in their current systems, particularly in the reporting of Scope 3 emissions.
The year 2025 marks a turning point in addressing these issues. Businesses must move beyond incremental improvements, embracing a wholesale transformation in how data is collected, processed, and integrated across systems. Advanced technologies, including AI-driven tools, are proving invaluable in this area. By enabling predictive modelling and energy optimisation, these tools allow companies to identify inefficiencies and reduce emissions at every stage of their value chains.
However, as businesses adopt these technologies, they must consider their own ecological impacts. For instance, AI-powered solutions, while effective, can also increase energy consumption if deployed without careful consideration. At EcoAct, our Climate Data Analytics (CDA) suite provides tailored solutions that streamline data processes while maintaining a focus on sustainability. By investing in data interoperability and transparency, businesses can turn complex reporting requirements into competitive advantages.
#3 Unlocking the market potential of Article 6
Long awaited agreements on Article 6 at COP29 will unlock demand among project investors, who had been put off by uncertainty about credit authorisation rules. In 2025, buyers have the green light to build portfolios of Article 6 compliant credits, including those eligible for CORSIA, which can now be supplied by six major carbon standards. These rules will also help countries to issue the Letters of Authorisation necessary to meet this burgeoning demand.
Novel quality standards for Article 6.4 mean we should see the first credits transitioning from the Clean Development Mechanism (CDM) to the Paris Agreement Crediting Mechanism (PACM) in 2025. UN experts will also work towards developing the first new PACM methodologies.
The ICVCM will complete its first round of assessments to determine whether methodologies adhere to its Core Carbon Principles (CCPs). As companies increasingly seek to align their procurement policies with recognised quality frameworks, the market keenly anticipates decisions relating to REDD+, clean cookstoves, and Improved Forest Management (IFM) projects.
#4 Deepening focus on nature and biodiversity
Looking ahead to COP30 in Brazil, nature and biodiversity are set to dominate the global sustainability agenda. Proposed initiatives like the Tropical Forest Forever Facility, aimed at funding conservation and restoration of tropical forests underscore the urgent need for businesses to integrate nature and biodiversity into sustainability strategies.
Yet, despite the increasing focus, a gap remains in corporate action. A recent analysis of Fortune Global 500 companies revealed that while 94% have set carbon-related targets, far fewer – only 12% have measurable biodiversity goals, and 15% have goals addressing forests. These numbers highlight the slow adoption of nature-positive approaches, even as the global community aligns on the critical importance of preserving natural ecosystems.
2025 offers a crucial opportunity for businesses to close the gap. Frameworks like the SBTi’s Forest, Land, and Agriculture Guidance (FLAG) offer clear pathways for addressing land-based emissions and promoting ecosystem restoration. By aligning with GHG Protocol guidance, businesses can integrate biodiversity goals into their broader climate strategies, ensuring alignment with the increasing demands of stakeholders and regulators alike.
EcoAct supports businesses in embracing nature-positive strategies, from measuring biodiversity impacts to implementing scalable solutions. Our nature-based projects focus on restoring degraded ecosystems, safeguarding biodiversity hotspots, and supporting sustainable livelihoods for local communities.
As biodiversity takes centre stage at COP30, businesses have a unique opportunity to turn biodiversity risks into measurable opportunities, enhancing resilience, aligning with global priorities, and demonstrating environmental stewardship.
#5 Transition planning: managing scale and rapid change
In this critical year, the scale and speed of change needed to stay ahead of the curve is accelerating. Transition planning has revealed certain hurdles, prompting a recalibration of targets and roadmaps to remain realistic and achievable.
To navigate these challenges, businesses need strong governance, clear accountability structures, and practical guidance. Recent research by EcoAct’s parent company Schneider Electric Sustainability Business, in collaboration with Women Action Sustainability (WAS), based on insights from over 60 business leaders across diverse industries and regions, reveals that while 38% of companies have developed climate adaptation plans, only 6% have fully implemented them, and just 12% can effectively quantify their financial exposure to physical climate risks. At EcoAct, we offer solutions such as Climate Risk Analysis, which identifies vulnerabilities to climate change and prioritises adaptation measures. Tools like the EcoAct Climate Risk Tool (ECLR) visualise site-specific risks across a range of climate hazards, delivering clear, strategic insights for adaptation planning. Similarly, our Carbon and Energy Pricing Tool calculates financial exposure to evolving carbon pricing regulations, enabling businesses to anticipate and manage risks proactively.
By combining these tools with robust stakeholder engagement and value chain collaboration, companies can adapt to rapid changes and maintain resilience. Through EcoAct’s Transformation ACTR approach, we guide businesses in recalibrating their strategies and ensuring measurable progress toward net-zero ambitions.
Moving towards COP30
Companies that move beyond compliance to build effective data infrastructure, transform their value chains, and integrate nature into their strategies will be better positioned for the future. As COP30 approaches, the intersection of climate action and nature protection will define corporate sustainability leadership.
At EcoAct, we stand ready to support companies in building robust, adaptive strategies that deliver real impact.
The challenges are significant, but the solutions are within reach. By working together, I am confident that we can make 2025 a defining year for climate and nature.
