Navigating the future of sustainability and ESG

As we look ahead to 2025, organisations must assess the implications of shifting sustainability and environmental, social, and governance (ESG) priorities amidst an evolving geopolitical landscape.

Whilst 2024 was a landmark year for companies to embed corporate sustainability practices within their governance frameworks, 2025 is expected to bring new challenges and opportunities as regulatory frameworks continue to evolve, and appetite for litigation in the ESG space remains high.

Sustainability and ESG forecast

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1. ESG Main

Key takeaways

AI and technology integration

  • This will be increasingly adopted to drive decarbonisation efforts, as well as efficiency with sustainability reporting requirements and disclosures.

Climate resilience and adaptation

  • The acceleration of extreme weather events will lead to further global laws and regulations, as well as market-driven demands to combat climate change impacts.

Biodiversity

  • Growing pressure from governments and consumers on businesses to transition to regenerative practices, protect natural ecosystems, whilst future-proofing business operations.

Supply chain due diligence

  • Increasing obligations on organisations to disclose information on the environmental and social impacts across their value chains.
Safine Hadri Square

In today's global polycrisis, businesses and insurers must innovate and lead with transparency. Ethical leadership and global collaboration are key to navigating these challenges.

This report looks at the key ESG legal and regulatory trends expected to drive business transformation in the coming months, and which will reshape how the insurance industry and other corporates, globally, prepare for sustainability and climate resilience, and frame their risk management strategies.