5 Sustainability Predictions for 2025 — And What These Mean for Businesses
2024 had its struggles, but a lot of positive changes could come in 2025.
In many ways, 2024 felt like a step backward for environmental and social progress.
For one, regardless of your political views, it's hard to argue that the re-election of Donald Trump at least signals a warmer embrace of fossil fuels, which are the number one cause of climate change. The SEC's climate disclosure rules also look to be on pause indefinitely, if not dismantled.
Persistent inflation has also been a challenge, such as with some consumers prioritizing affordability over sustainability.
And overall, emissions continued to climb globally, rising by a projected 0.8% compared to 2023, according to the Global Carbon Budget (GCB).
While more progress is needed on global efforts toward a more sustainable future, 2024 still had a lot of positives. For example, emissions did decrease by 0.6% in the US and 3.8% in the EU, according to GCB. A slew of state and local environmental ballot initiatives also won, despite the change in direction at the federal level.
And overall, demand for sustainable solutions is not disappearing. Nearly-two thirds of consumers consider sustainability a top-three factor in purchasing decisions, according to Simon-Kucher.
Corporations also still face regulations such as climate disclosure rules in California and Europe. 2025, for example, will be the first year of reporting under the EU's Corporate Sustainability Reporting Directive (CSRD), which could affect large U.S. businesses, similar to how GDPR has had global reach.
So even though 2024 may not have been a banner year for sustainability, businesses would be wise to still prioritize it next year.
Yet as a Bain study finds, "it isn’t effective for companies to market 'sustainability' as a single concept or to target consumers as a monolithic group. Businesses need to understand what different consumer segments are after on a category-by-category basis."
With that in mind, consider the following five sustainability predictions for 2025 and what that might mean for different types of companies and consumer segments:
1) Increased Traceability for Consumer Brands
Expert Prediction
"The big trend I see is consumer-driven demand for traceability to origin. I really see it in the specialty coffee space. High-end consumers want to know where their supposedly artisan products come from, how they were grown, and who was involved," explains Theodore Chan, managing editor of Coffee Roast and a marketing instructor at Boston University.
"Roasters are prioritizing farm-level transparency to communicate farmer fairness and supply chain accountability. This shift builds trust while supporting ethical sourcing, better pay for farmers, and environmental responsibility. This started a few years ago and I think it’s increasingly a part of the climavore trend," he adds.
Example
One Degree Organics uses QR codes on packaging to connect customers with more information on the farmers behind the products.
What It Means for Businesses
Businesses in consumer categories such as food, beverages, cleaning products, and apparel will likely need to be more transparent about their supply chain management, showing consumers exactly where their ingredients or materials come from. Doing so could be a way to both build consumer trust while helping companies better map their Scope 3 emissions.
2) AI Will Be Used to Identify More Sustainability Opportunities
Expert Prediction
"Energy and industrial operators will find real, repeatable, and scalable value coming from AI applications, going beyond the buzz. Pay special attention to platforms that can take advantage of deep, industry-specific data combined with operational context 'codified' from human insights," says Juan Muldoon, partner + co-head of ventures at climate VC firm Energize Capital.
In other words, artificial intelligence will be able to help users make better decisions in areas that are hard for humans to grasp but make a difference within the energy and industrial spaces, he adds.
Example
Many companies within Energize's portfolio are using AI for climate-related solutions, such as Amperon using AI to forecast electricity demand so that grid operators and other stakeholders can optimize the use of renewable energy without hurting grid reliability.
What It Means for Businesses
Insights and efficiencies from AI are helping businesses across industries, but rather than just looking at customer-facing tools like chatbots — which end up frustrating many users anyway — consider whether there are ways to use AI from more of an analytics perspective to reduce energy usage and other areas of emissions.
While some of the largest impacts might be in the energy and industrial sectors, such as with optimizing power grids, this could apply to any business, such as consumer goods companies using AI insights to optimize shipments in a way that balances speed and emissions.
3) Alternative Energy Will Ramp Up, Especially for AI Usage
Expert Prediction
"We have made the theme for Earth Day 2025, 'Our Power, Our Planet,' focusing on renewable energy, because nothing is possible without power and the world cannot rely on fossil fuels anymore," says Sarah Topalian Davies, director, media and communications at Earthday.org, the organization behind Earth Day.
"All the major tech and AI companies are laser-focused on finding alternative energy sources," she adds. "They are creating their own energy islands to satisfy their energy needs, which are vast."
"Other businesses will follow them towards solar, wind and nuclear," says Topalian Davies. "Expect to see brands amplifying their renewable energy use in the future in the same way they tout that they are organic or use fair trade practices."
Example
In May 2024, Microsoft announced a deal with Brookfield Asset Management to invest over $10 billion in renewable energy generation to deliver 10.5 gigawatts of power to Microsoft's data centers and growing demand for AI. That's three times as much power as what's currently consumed in Northern Virginia data centers, the world's largest data center market, according to CNBC.
What It Means for Businesses
Using AI to power sustainability insights is one sustainability trend, but you need to make sure that you're not inadvertently creating a net increase in Scope 3 emissions due to data center demand. So, businesses need to think not only about their own power purchases but also about the energy choices of their suppliers, including from cloud providers and related tech vendors.
One thing to keep in mind is that you may have to weigh whether nuclear energy aligns with your goals; the power source is sometimes more controversial than other clean energy sources, but it may be necessary.
"With the data center industry growing to meet the rising needs of today’s digital workloads, providers will continue to compete aggressively to find the power sources needed for large-scale operations. As an emissions-free source, data center operators will likely explore nuclear energy as the future solution to their power problem and a step towards their net zero goals in 2025," predicts Jenny Gerson, head of sustainability at DataBank, a data center operator.
4) EVs Will Keep Growing
Expert Prediction
"EV sales will continue to increase as a percentage of overall new vehicle sales, and used EV sales will begin to increase rapidly, despite mainstream coverage of an 'EV sales downturn,'" says Muldoon. "This is because EVs offer a fantastic driving experience and a cost-effective alternative for many Americans — particularly in the suburbs — who commute far less than 250 miles per day and can access charging relatively easily at home or at work."
"Combined with a lower total cost of ownership and a technology-first UI/UX, drivers choose these modern cars because they are a more attractive option," he adds. "Not to mention that eliminating EV rebates will not be the death knell for the EV adoption curve in the US it is feared to be, as many drivers who are buying EVs are not eligible for the rebates as it is."
Example
Electric vehicle company Lucid will make the Lucid Gravity available to order late next year, and this EV has an EPA estimated range of up to 450 miles, which bests the driving range of many gas-powered SUVs, let alone other EVs. It also has up to 120 cubic feet of cargo space, which also exceeds many electric and non-electric competitors.
In other words, Lucid is innovating in ways beyond just offering an electric option. When EVs have clear functional advantages over non-electric counterparts, that can provide a compelling pitch to consumers.
What It Means for Businesses
On the surface, the potential growth in EV sales might seem like it only applies to automakers. But many other types of companies should care about these shifts.
For example, "EV charging is already among the top requested amenities for apartment buildings. Without it, property owners will lose tenants and fall behind competitors. Installing EV charging can be complex, and operationally burdensome, and requires time to plan then build, so property owners need to start these projects in 2025 to be prepared for 2026," says Aubrey Gunnels, co-founder and CEO of 3V Infrastructure, which focuses on installing EV chargers in apartment buildings and other types of buildings like hotels.
In her view, 2025 will pave the way for an EV boom in 2026, when major automakers will release models at more affordable prices.
With that in mind, companies with "Return to Office (RTO)" policies should also consider adding more charging infrastructure, both as an employee benefit and to improve Scope 3 carbon accounting.
5) The Emphasis Will Be on Market-Based Solutions
Expert Prediction
“I anticipate with the change in administrations that solutions for climate action are going to need to be 'market based' and not be a burden on the taxpayers," says Curtis Shuck, chairman of Well Done Foundation, a nonprofit that plugs orphan oil and gas wells across the US.
"Now more than ever, we need to lead by example and leave things better than we found them for future generations. It will take more than just lip service and fighting about policy; it is going to have to mean taking action, rolling up our sleeves and not being afraid to get a little dirty in the process of making a difference," he adds.
Example
Amazon CEO Jeff Bezos has made some controversial decisions from a political perspective lately, but from a market-based perspective, the company has still been walking the walk as it aims to fulfill The Climate Pledge goal of net-zero carbon emissions across its operations by 2040.
For example, in July, an Amazon fulfillment center in Sacramento became the first fulfillment center in North America to earn a "Zero Carbon Certification” from the International Living Future Institute (ILFI). In addition to using off-site renewable energy projects to match its electricity consumption, the fulfillment center incorporates a wide range of solutions, ranging from the use of lower-carbon concrete and conveyor systems that operate with 38% less energy consumption than usual.
What It Means for Businesses
If government is going to take a step back, businesses of all stripes need to take a step forward in their sustainability efforts. This isn't about the political ideology of the CEO though. Climate change poses tangible financial risks to businesses, and consumer demand for sustainability means that those who can clearly articulate their corporate sustainability strategies and be genuine in their efforts working toward a sustainable future stand to capture more revenue.
Disclosure: Our parent company, JournoContent LLC, has clients involved in sustainability-related areas, among others. The owner of Carbon Neutral Copy, Jacob (Jake) Safane, has investments in AI and sustainability-related companies, among others.
As such, conflicts of interest related to these and other investments/business relationships, even if unintended, may exist at times. Please email info@carbonneutralcopy.com if you'd like further clarification on any issues.