5 Trends in the Sustainability Sector: What Sustainability Managers Need to Know in 2025

The sustainability landscape is changing rapidly. 2025 marks a shift from value-based to business value-oriented sustainability arguments. Instead of moral imperatives, the focus will be on cost optimization, risk minimization and revenue generation.

The reality is hitting many sustainability teams harder than expected: 2030 is only five years away, and not all companies will achieve their original climate targets. At the same time, they are juggling fragmented regulations, increasing Scope 3 requirements and whether AI is a curse or a blessing for the sustainability strategy.

Gartner's latest analysis reveals five key trends that will shape your sustainability work this year. Spoiler: It's not about becoming less ambitious, but about acting smarter.

Trend 1: Reality Check for Climate Targets – Time For an Honest Reassessment

Many companies are experiencing a reality check in 2025: in 2024, 239 large companies were removed from the Science Based Targets initiative because they did not finalize their targets. Microsoft reported a 31% increase in Scope 3 emissions despite strong efforts to reduce them.

Under pressure from investors, customers and regulators, executives have in recent years formulated ambitious sustainability goals — Net Zero pledges, transparent supply chains, sustainable products. Much of these pledges have been overly optimistic.

What you can do now:

• Take stock honestly: Where do you really stand with your sustainability goals? What is achievable — what is no longer achievable?
• Transparency instead of retreat: Communicate proactively why you are readjusting and what the consequences are.
• Make business benefits visible: Link your ESG goals to clear business cases — for example, by saving energy, minimizing risk or increasing resilience.
• Control the narrative: Don't wait for the market, media, or ratings to tell your story. Tell it yourself — fact-based, honest and authentic.
• Involve stakeholders: Actively involve investors, employees and supervisory bodies in your realignment. This will build trust and reduce resistance.

Companies that realign their sustainability goals now in an open, fact-based manner and with a view to business benefits will gain credibility — both internally and externally. On the other hand, those who continue to cling to unrealistic targets or secretly withdraw from them risk a lot: from loss of reputation to devaluation by ESG rating agencies.

Trend 2: ESG Data Management is Becoming a Core Competence

The regulatory landscape resembles a patchwork quilt. In the US, requirements are shifting to state level, while the EU is shifting reporting obligations for smaller companies with the Omnibus Package. China, India, Mexico, and Brazil are developing their own standards. Amidst this uncertainty, companies need to improve their ESG data strategies to meet both local and global standards.

Your priorities:

• Invest in flexible data systems that can adapt to changing regulations
• Create cross-functional ESG data responsibilities
• Embrace technology: manual reporting is becoming obsolete
• Re-evaluate your software partners: can they keep up with the pace of regulation?

The companies that invest in robust data foundations now will have a competitive advantage tomorrow.

Trend 3: Scope 3 is Becoming a Competitive Factor

Most companies are struggling with a paradoxical problem: their supply chains are significantly more carbon-intensive than their direct operations, but few have a well-thought-out Scope 3 strategy. This gap quickly becomes a business risk.

Geopolitical tensions exacerbate the situation. Local relocation (so-called nearshoring, outsourcing to a neighboring country) reduces political risks, but can increase emissions. New CO₂ border taxes suddenly turn hidden emissions into a cost factor.

Your Scope 3 roadmap:

• Re-analyze your supply chain through a sustainability lens
• Make emissions data a contractual requirement with key suppliers
• Explore circular economy models: Less dependence on raw materials means less risk
• Seek strategic partnerships, including with competitors, for sustainable materials

Trend 4: Reconciling Sustainability and Business Results

Purely value-based sustainability arguments are losing traction. In economically uncertain times, you need the direct business case. CFOs want to see how sustainability improves the bottom line.

The most successful initiatives offer double benefits: They save costs and reduce environmental impact at the same time. Equipment refurbishing, for example, strengthens supply chain resilience and supports circular economy goals.

Your formula for success:

• Integrate sustainability criteria into strategic business decisions
• Define clear risk thresholds for new partnerships: At what level of climate risk does a supplier contract become a no-go?
• Calculate for the long term: preventive climate adaptation can save millions later on
• Create "double benefit projects" that reduce both costs and emissions

Trend 5: Using AI correctly as a "Sustainability Enabler"

Artificial intelligence can contribute to the optimization of sustainability strategies, but it also poses a challenge. Because while AI makes processes more efficient, energy consumption increases, especially in cloud-based applications. The question is how to reconcile the energy consumption of AI systems with sustainability goals:

• Develop a cost-carbon metric: how much CO₂ does an AI solution consume versus how much can it save
• Perform energy risk assessments for data centers
• Review local renewable energy options for your IT infrastructure
• Establish governance for AI risks, including data protection and ethics

Your Strategic Roadmap for 2025

The sustainability landscape is becoming more complex, not simpler. But therein lies your opportunity. Companies that act strategically now will set themselves apart from the competition.

Three concrete steps for the coming months:

1. Create data excellence: Without a robust ESG data foundation, you will fail in the fragmented regulatory landscape. Invest in technology-driven software solutions now.
2. Tackle Scope 3 strategically: In many industries, significant emissions are generated along the supply chain — if you take targeted action here, you can have a major impact and minimize risks at the same time.
3. Define an AI pilot project: Start small — automate a recurring reporting process and measure energy consumption.

Companies that see sustainability as a strategic lever and not as a compulsory exercise will be ahead in the future. AI will be a decisive enabler here — if you use it consciously and measurably.