2024 in Review: Trends Shaping a Sustainable Future for 2025

As we commence 2025, reflecting on the trends that defined 2024 provides valuable insights for businesses striving to thrive in the year ahead. The past year has reiterated the importance of embedding sustainability principles into core operational frameworks of businesses worldwide. Here's a look back at key developments from 2024 and what they signify for businesses as we move into 2025.

1?? Increased Focus on Social Equity within ESG ??

2024 saw heightened attention to social equity as businesses recognised the increasing importance of addressing systemic inequalities in their operations and communities. A recent survey revealed that 65% of organisations have implemented measurable social equity goals, up from 50% in 2023 (Link). Rising regulatory pressures and stakeholder expectations fuelled this trend as investors and consumers demanded more transparent and impactful social practices, which will likely continue this year.

As the social dimension of ESG matures, businesses should continue to harness these initiatives not only to enhance their reputations but also to drive competitive advantages in increasingly socially conscious markets. Our own Sustainable Women event, which convened female leaders from various sectors, highlighted this topic, celebrating achievements and discussing the role of gender diversity in fostering strategic innovation.

2?? Delay in European Union Deforestation-free Regulation (EUDR) ??

The delayed enforcement of the EUDR spurred extensive debates about the feasibility of cross-border regulations, the readiness of enhanced supply chain traceability, and the ability of global markets to support smallholder farmers.

The proposed move from “low risk” to “no risk” geolocation data provision highlighted the complexity of balancing different political interests alongside regulatory stringency and operational feasibility. For businesses, this delay presents an opportunity to invest in capacity building and technological solutions to ensure compliance while fostering equity and inclusivity in global supply chains.

These discussions were a focal point at our recent panel event in Singapore, where participants explored the delicate balance businesses in Southeast Asia face between supporting smallholder farmers and meeting global market demands.

3?? Progress in Carbon Border Adjustment Mechanism (CBAM) Reporting 2026 ??

In October, the CBAM reached a critical milestone by formalising a consensus to require EU importers to report embedded emissions of imports based on supplier data. This transition toward data-driven transparency represents a significant inflexion point in corporate accountability, amplifying reporting responsibilities for companies, particularly in procurement and supply chain operations. It also highlights the escalating operational challenges that await businesses inadequately equipped to adapt to these stringent requirements.

For forward-looking companies, this change underscores the imperative to establish robust mechanisms for emissions data collection and supplier engagement for full compliance. Such measures also position CBAM as a strategic differentiator in global trade. This was prominently discussed at our event with BritCham Indonesia, where speakers emphasised Indonesia's need for effective carbon management at the national level.

4?? Rise in Nature-based Intelligence Innovations ??

In 2024, the integration of nature-based Artificial Intelligence (AI) solutions and innovations also gained traction, driven by the urgency to address biodiversity loss and ecosystem degradation. Innovations such as satellite-based monitoring, AI-driven biodiversity assessments, and regenerative agricultural practices have taken centre stage, enabling businesses to align operational practices with ecological stewardship.

By adopting nature-based solutions through advanced technological frameworks, companies are achieving a dual objective: optimising costs and mitigating operational risks. A recent report revealed that companies leveraging nature-based solutions have significantly reduced operational risk exposures related to business operations (Link). For CEOs and CSOs, the focus on biodiversity underscores the importance of investing in technologies that provide actionable insights into natural capital, consequently bolstering regulatory compliance and stakeholder confidence.

5?? Increase in Green Finance Capital Flow ??

Investors now consider ESG disclosures to be a crucial factor in decision-making. The rising demand for transparency and accountability and the subsequent string of reporting requirements have catalysed a significant increase in green finance capital flows. The rise of green bonds, sustainability-linked loans, and impact investments signals a shift in capital markets, where financial returns are increasingly aligned with environmental and social outcomes.

For CFOs, the shifting paradigm of green finance offers a dual-edged dynamic of opportunities and challenges. Companies must enhance their ESG disclosure practices to attract investment while ensuring the credibility and integrity of their reporting frameworks. By doing so, they can position themselves at the forefront of the transition to a sustainable economy.

Looking Ahead to 2025 ??

Despite the focus on sustainability, 2024 was marked by geopolitical conflicts, supply chain disruptions, and cost-of-living challenges, sometimes side-lining sustainability initiatives. A recent survey indicated that 60% of executives view regulatory compliance as the primary driver of their ESG efforts, yet only 40% feel adequately prepared to meet new requirements, highlighting a readiness gap (Link).

The path to 2025, therefore, demands a strategic, proactive approach. By embracing innovation, fostering inclusivity, and prioritising transparency, businesses can navigate the complexities of the evolving sustainability landscape and emerge as leaders in the global transition to a more sustainable, resilient and equitable economy.

Some key areas for businesses to focus on to help set themselves up for success include:

1. Strengthening ESG Data Infrastructure: To navigate regulatory complexities and investor expectations, businesses must prioritise robust data collection and reporting mechanisms.
2. Leveraging Technological Innovations: From nature-based intelligence to blockchain-enabled transparency, technology will play a pivotal role in driving sustainability goals.
3. Engaging in Global Collaborations for Enhanced Action for Climate & Nature: Companies must engage with various stakeholders to ensure a greater shared responsibility to help drive forward the sustainability imperative globally.
4. Collaborating with the Supply Chain on Regulatory Compliance: As regulations like CBAM and EUDR evolve, collaboration with governments, industry peers, and smallholder stakeholders will be essential to achieving equitable and effective outcomes.
5. Capitalising on Green Finance: Proactive engagement with investors and alignment with emerging green finance instruments will enable companies to secure the resources needed for sustainable growth.
6. Adapting to Regulatory Developments: Staying ahead of evolving ESG frameworks will require dynamic strategies, cross-functional collaboration, and a commitment to transparency.
7. Incorporating AI for Operational Efficiency: Leveraging AI-driven tools will be critical for efficient ESG reporting and compliance.
8. Enhancing Social Equity Initiatives: Companies must prioritise actionable plans for workforce diversity and community engagement, aligning social goals with broader ESG frameworks.