5 Trends Shaping the Future of Sustainability in 2025

People and businesses across the globe are finally prioritizing sustainability, making net zero by 2050 feel achievable. Electric vehicle sales are rising, making up 14% of global vehicle sales in 2023. Companies are meeting their ESG (Environmental, Social, and Governance) goals, banks and investors are launching green funds, and conversations about emissions are more common than ever!

We are stepping up to create a more conscious future. From game-changing innovations or bold corporate initiatives - the sustainability landscape is evolving quicker than ever and - 2025 is shaping up to be the landmark year for just that.

But what are some key factors driving this transformation? Read along to look out for trends paving the way for a greener planet, whether you're a business leader, environmental advocate, or curious observer - this might inspire you to reimagine what's next!

1. Circular Economy Models

The circular economy model is gaining more and more momentum. Corporations are focusing on reducing waste and promoting the reuse and recycling of resources.?

Companies like Dell are leading the way by reusing plastic from recycled laptops to create new devices. Fashion brands like Patagonia and The North Face encourage customers to repair, reuse, and resell clothing - rather than discarding them.?

Apple’s carbon-neutral Apple Watch is another great example. By using recycled materials, renewable energy, and offsetting residual emissions through environmental projects, Apple showcases its commitment to sustainability.

Here’s a video on Apple’s carbon neutral commitments with a twist:

2. Sustainable Finance

Studies show that customers and stakeholders are demanding transparency of their purchases - who makes it (labor practices) and how it is made (environmental impact) being the main concerns.

In fact a study by IBM suggests that 70% of consumers are willing to buy products at a premium from brands that provide full transparency and traceability.

In response to this demand, businesses are fluffing their ESG Reporting has become mandatory for many corporations listed on the European Union’s Non-Financial Reporting Directive (NFRD), the U.S. Securities and Exchange Commission (SEC), and India’s Securities and Exchange Board (SEBI).?

HDFC Bank listed in the SEBI has even integrated ESG factors into its lending practices! This includes green bonds that provide loans for eco-friendly projects like planting trees and setting up solar power plants. The Bank also finances renewable energy projects supporting companies that build wind farms, solar energy plants that use clean energy over fossil fuels.

3. Last-Mile Optimisation

Last-mile delivery is one of the most challenging aspects of any business in the supply chain industry - this is where companies often see their largest carbon footprints.?

To overcome this, businesses are optimizing the last mile by using - electric vehicles, drones or consolidation strategies to minimize their environmental footprint.

Platforms like Zomato and Swiggy are leading this change in India. They are actively transitioning to electric vehicles (EVs) for food delivery. Zomato even aims to have 100% of its delivery fleet powered by EVs whereas Amazon India is testing delivery of products via drones in certain areas as part of its sustainability initiatives.

4. Sustainable Packaging

The shift from single-use plastics to biodegradable products is shaking up the packaging industry in a big way. By 2025, businesses are expected to use more sustainable materials and reduce excess packaging, balancing product protection and environmental responsibility.?

Amazon’s Frustration-Free Packaging sets a great example of this. The company is using less material that is easy to unbox and still protects the product - what’s more is that this has reduced packaging waste by 500,000 tons!

This movement is gaining popularity amongst many FMCG (Fast-Moving Consumer Goods) corporations as well.?

Hindustan Unilever, has introduced recyclable and reusable plastic packaging for its products, along with biodegradable detergent formulas and refill pouches. These efforts have already cut virgin plastic usage by over 50,000 tonnes by 2022. Similarly, Tata Consumer Products has switched to compostable tea bags and paper-based packaging for its beverages and snacks, with a goal to make all its packaging recyclable, reusable, or compostable by 2030.

IKEA is also making waves with its innovative approach, replacing polystyrene packaging with biodegradable, mushroom-based alternatives. This not only reduces the use of non-renewable materials but also supports circular economy practices.

These pioneers are showing us that a shift to sustainable packaging is no longer a choice but a necessity!

5. Net-Zero Buildings

Lastly, let’s not forget buildings that are a huge contributor to global warming. From electrical appliances that are plugged in to lighting, heating and cooling systems - most of this energy is used from fossil fuels, leading to greenhouse gas emissions.

To resolve this issue, conscious citizens are investing in renewable energy like solar, and wind energy.?

Freiburg, the ‘solar city’ of Germany is a model example. The city ensures sustainability by making solar panels a requirement for all newly constructed buildings. They have also created a 500km stretch to promote cycling to work and car-free areas to promote walking - providing us a blueprint of sustainable living!

In the coming years, Indore is on its way to become India’s first solar power city! The city has already installed solar panels on government buildings, schools and hospitals -? is expecting to invest a lot more in 2025 - paving the way for a brighter and solar powered future in India.

Looking back at the sustainable initiatives that have shaped up this year, it is clear that sustainability is not just an option, but a priority for many. The trends we’ve explored, from circular economy models to net-zero buildings, show us how innovation and conscious efforts are driving real change.

These shifts are disrupting industries - motivating people, businesses, and pushing governments to aim higher for a greener future.

Let these trends inspire us to embrace sustainability and work together to build a more conscious and thriving planet for us all!

At TribesforGOOD through our School of Changemakers we are focussing on bringing climate and sustainability initiatives to our classrooms. If you are working on an initiative that can be brought to the classroom leave a comment below.