Skip to main content

What to Look out for in 2025

Introduction

As we shift into 2025, sustainability considerations are at the forefront of how businesses operate, innovate, and communicate their impact. The sustainability landscape is evolving rapidly, influenced by new reporting standards, innovative technologies, and shifting legislation. Here is a closer look at the top trends for 2025 that are reshaping business practices.

1. Canadian Sustainability Disclosure Standards (CSDS 1 and 2)

Sustainability reporting is taking a significant leap with the implementation of the Canadian Sustainability Disclosure Standards (CSDS 1 and 2). These standards focus on enhancing transparency and delivering decision-useful information to stakeholders. By setting a high standard for accountability, CSDS is helping organizations better communicate their ESG performance while placing Canada at the forefront of global sustainability reporting initiatives.

Whether your organization is managing climate-related disclosures or addressing social issues, aligning with these new standards is essential. Companies that adapt quickly to CSDS will not only improve stakeholder trust but also refine their sustainability strategies.

2. Strengthened Corporate Governance under the Supply Chains Act

With the growing focus on ethical supply chains, 2025 brings increased scrutiny of corporate governance. The Supply Chains Act, aimed at curbing forced and child labor, may be due for revision, driving businesses to adopt even more robust due diligence frameworks.

For businesses, this means prioritizing supply chain risk management and increasing transparency. Organizations addressing sustainability challenges in their supply chains are likely to see a stronger alignment with ethical investors and attract partnerships built on accountability.

AI at Laptop

3. The Rise of Double Materiality Assessments

Another noticeable sustainability trend emerging in 2025 is the increasing adoption of double materiality assessments. This approach evaluates not only how a company’s operations impact society and the environment, but also how sustainability issues affect the company’s financial performance and ability to grow.

By leveraging double materiality, organizations can uncover risks and opportunities across both financial and non-financial dimensions, enabling holistic decision-making. For example, businesses can assess the financial risks associated with climate change while understanding their environmental footprint.

Companies integrating these assessments into their sustainability reporting will gain competitive advantages by identifying value-creation opportunities that align with investor priorities for risk mitigation.

4. Supply Chain Innovation Meets Low-Carbon Investments

Supply chains are playing a pivotal role in the global sustainability transition. Businesses are now investing in lower-carbon intensity products and sustainable logistics solutions to reduce emissions across their operations. These innovations increasingly support sustainable development goals, and position companies as leaders in green procurement.

However, these changes raise new challenges around supply chain due diligence and risk assessment. Tools that provide clear insights into environmental and social impacts and opportunities throughout global operations and supply chains are becoming indispensable for managing sustainability efforts effectively.

CO2 Emissions

5. AI and Data Analytics in Tackling Sustainability Challenges

The use of technology, particularly Artificial Intelligence and data analytics is rapidly expanding. Ai is enabling businesses to solve complex issues, from optimizing resources to analyzing data for sustainability reporting. A notable innovation is the development of eco-friendly AI models like DeepSeek, which are less energy-intensive than traditional large language models, demonstrating the potential for greener AI technology; notwithstanding concerns about security it sets a new benchmark.

DeepSeek, for example, processes sustainability data with minimal energy consumption, offering companies a low-impact way of conducting real-time reporting and analysis. Such advancements enhance the ability to conduct double materiality assessments while also reducing environmental footprints.
Additionally, AI-driven tools streamline reporting processes, enabling companies to meet sustainability objectives efficiently. This trend is expected to gain even more momentum as businesses seek scalable solutions to address global sustainability challenges.

Looking Forward

The ESG trends shaping 2025 highlight both challenges and opportunities for businesses worldwide. On the one hand, the rise of standards like CSDS and the focus on double materiality demand greater accountability. On the other hand, the use of tools like AI in sustainable finance mechanisms offer innovative ways to integrate sustainability priorities into core operations.

To succeed, businesses need to balance compliance with bold innovation. It is no longer about meeting minimum requirements; thriving in 2025 will require prioritizing transparency, governance, and responsibility. By doing so, companies can foster trust, create value, and lead in the global push for a sustainable future.

Partner with Shift Critical

For Canadian businesses aiming to excel in the evolving landscape of double materiality reporting, supply chain risk assessment, technology, and other areas of sustainable business growth, Shift Critical offers the expertise and solutions necessary to thrive. Wherever you are focused we can help; Shift Critical is your trusted partner in achieving your sustainability objectives.

Schedule a demo today and take the first step toward a more sustainable future.