ESG Trends for 2025

The global ESG landscape in 2025 is set to be marked by compliance, better business integration, and innovation. Transparency is becoming non-negotiable, with growing consumer demand for accountability and the introduction of stricter regulations globally. Emerging technologies like AI are revolutionising ESG data management, while demand for sustainability-focused roles are on the rise, underscoring the importance of attracting and retaining green talent.

Below, we outline key ESG and corporate responsibility trends to watch in 2025. While these topics have been gaining importance in recent years, they are set to attract greater focus in 2025 as companies adopt more strategic approaches to managing their impact.

Embedding ESG into business strategy

The days where sustainable and ethical practices were a nice-to-have are gone, and corporate responsibility is increasingly becoming core to business strategy. With 82% of leaders anticipating greater ESG influence on performance - a 10% rise since 2023 - companies are increasing investment in ESG initiatives (Thomson Reuters, 2024). It is now much more widely understood that a concerted and integrated approach to sustainability and social responsibility supports competitiveness by, for example, enhancing company reputation, mitigating supply chain and climate-related risks, and improving operational efficiencies.

Transparency & Greenwashing

Public demand for transparency continues to grow amid concerns over greenwashing, which erodes public trust in sustainability initiatives and undermines those making genuine efforts. Most people expect companies to act responsibly and disclose their ESG practices (SEC Newgate, 2024). The spotlight has increasingly been on the fashion industry, which is too often linked with negative social and environmental impacts. Last year, the UK Competition and Marketing Authority (CMA) released guidance on best practice for the industry and announced that from April 2025, violators could be fined up to 10% of global turnover (CMA, 2024). Similar investigations have been taking place elsewhere, such as in Italy (read our previous post on this here), reflecting growing pressure on businesses to focus on responsible supply chain management and marketing.

For help navigating environmental marketing in line with the Green Claims Code, head to our guide here.

Mandatory reporting and regulation

Increasing regulation continues to dominate ESG discourse as transparency becomes the norm, even amid the scaling-back of US federal climate policies. Last year, we saw progress such as the adoption of the EU Corporate Sustainability Due Diligence Directive (CSDDD) (see our article here for more on this), and key developments for 2025 include the expansion of UK mandatory climate disclosures under the Sustainability Disclosure Requirements (SDR) and the EU Corporate Sustainability Reporting Directive (CSRD) taking effect. However, fast-changing and inconsistent requirements across jurisdictions pose compliance challenges, particularly for multinational companies (Grant Thornton, 2024). To enhance cohesion, more jurisdictions are adopting the International Sustainability Standards Board’s (ISSB) disclosure standards, including the forthcoming UK Sustainability Reporting Standards (SRS).

Beyond compliance, organisations increasingly value the internal benefits of sustainability reporting, such as improved brand reputation, talent attraction, operational efficiencies, risk reduction, and stakeholder trust (Deloitte, 2024). As reporting requirements expand, many smaller companies are voluntarily adopting sustainability reporting, recognising its strategic advantages. For more on climate-related disclosures, key frameworks and how voluntary reporting can benefit proactive organisations, see our article here.

Leveraging AI

AI is transforming ESG data management by increasing efficiency, accuracy, and transparency. While nearly half of organisations still rely on spreadsheets, investment in ESG-specific software is a priority in coming years, to support businesses to manage risks, meet regulatory requirements, consolidate data from diverse sources, and reduce manual workloads (KPMG, 2024; ICAEW, 2024). AI also helps companies embed ESG throughout their organisation, with 45% expecting better alignment of ESG goals with business objectives and 83% anticipating wider integration across roles (KPMG, 2024).

However, these advancements bring challenges, including environmental impacts from energy-intensive data centres, and social risks like biases, misinformation, and data breaches (Spencer and Singh, 2024; CFA Institute, 2023). Responsible AI use, including expert oversight and clear governance frameworks, is essential to mitigate these risks as discussions about its broader use and impacts continue to grow.

Attracting top talent

Sustainability roles are among the fastest-growing, with demand for green talent rising 11.6% in 2024 and 13% of jobs now requiring at least one green skill (LinkedIn, 2024; 2025). However, demand for green talent exceeds supply, and prospects increasingly seek employers committed to sustainability. With 62% of employers reporting more sustainability-related questions in interviews and greenwashing deterring 73% of workers, companies that are transparent about their sustainable practices are better positioned to attract this talent (Totaljobs, 2024).

As ESG agendas continue to gain attention from regulators, investors, and consumers, businesses have the opportunity to lead with their commitments and build trust through transparency. 2025 is poised to be a pivotal year for corporate ESG, and those that prioritise sustainability and transparency will reap the commercial and reputational benefits.

CFA Institute (2023). What are the ESG risks of AI? [online] CFA Institute. Available at: https://www.cfainstitute.org/insights/articles/what-are-the-esg-risks-of-ai.

Competition and Markets Authority (2024). Greenwashing: CMA Issues Tailored Guide for Fashion Brands. [online] GOV.UK. Available at: https://www.gov.uk/government/news/greenwashing-cma-issues-tailored-guide-for-fashion-brands.

Deloitte (2024). 2024 Sustainability Action Report. [online] Deloitte. Available at: https://www2.deloitte.com/us/en/pages/audit/articles/esg-survey.html.

Grant Thornton (2024). Less than half of UK businesses have sustainability targets in place. [online] Grant Thornton UK LLP. Available at: https://www.grantthornton.co.uk/news-centre/less-than-half-of-uk-businesses-have-sustainability-targets-in-place/.

ICAEW (2024). How AI is blazing a trail in ESG reporting. [online] The Institute of Chartered Accountants in England and Wales. Available at: https://www.icaew.com/insights/viewpoints-on-the-news/2024/mar-2024/how-ai-is-blazing-a-trail-in-esg-reporting.

KPMG (2024). The ESG equation: Responsibility seeds profitability. [online] KPMG. Available at: https://kpmg.com/us/en/articles/2024/esg-equation-responsibility-seeds-profitability.html.

LinkedIn (2024). Global Climate Talent Stocktake. [online] LinkedIn. Available at: https://economicgraph.linkedin.com/content/dam/me/economicgraph/en-us/PDF/linkedIn-global-climate-talent-stocktake-sept-2024.pdf.

LinkedIn (2025). LinkedIn Jobs on the Rise 2025: The 25 fastest-growing roles in the UK. [online] LinkedIn. Available at: https://www.linkedin.com/pulse/linkedin-jobs-rise-2025-25-fastest-growing-roles-uk-lrsnf/.

SEC Newgate (2024). ESG Monitor 2024: key findings. [online] SEC Newgate. Available at: https://secnewgate.com/esg-monitor/articles/esg-monitor-2024-key-findings/.

Spencer, T. and Singh, S. (2024). What the data centre and AI boom could mean for the energy sector – Analysis - IEA. [online] IEA. Available at: https://www.iea.org/commentaries/what-the-data-centre-and-ai-boom-could-mean-for-the-energy-sector.

Thomson Reuters (2024). 2024 State of Corporate ESG: Navigating new frontiers of regulation and AI. [online] Thomson Reuters Institute. Available at: https://www.thomsonreuters.com/en-us/posts/esg/corporate-esg-report-2024/.

Totaljobs (2024). Three in five employers see rise in sustainability questions from candidates during interviews. [online] Totaljobs. Available at: https://www.totaljobs.com/media-centre/three-in-five-employers-see-rise-in-sustainability-questions-from-candidates-during-interviews.