The Path Forward for Sustainable Business
Institute for Strategic Dialogue
The ERM Sustainability Institute's Annual Trends Report for 2025 highlights the critical sustainability challenges and opportunities facing businesses in the coming years. At the forefront of these trends is the imperative to respond to the growing threat of climate change through ambitious decarbonization efforts and comprehensive transition planning.
Equally important is the need for companies to value their human capital by addressing issues of diversity, equity, and employee well-being. As stakeholder expectations continue to evolve, businesses must also grapple with the integration of environmental, social, and governance (ESG) factors into their operations, despite the ongoing backlash and the emergence of greenwashing regulations.
Safeguarding natural systems by protecting biodiversity and combating deforestation has also emerged as a key priority. Alongside these environmental concerns, the report emphasizes the importance of streamlining sustainability disclosure, building resilient and sustainable supply chains, enabling sustainable production and consumption, and leveraging technology to drive sustainability efforts.
Underpinning these trends is the need for companies to respect fundamental human rights and navigate the evolving political landscape, which can significantly impact their sustainability strategies and initiatives. Overall, the report underscores the imperative for businesses to proactively embed sustainability into their core operations, in order to effectively manage risks, capitalize on opportunities, and meet the growing expectations of their stakeholders in an increasingly complex and interconnected world.

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The Path Forward for Sustainable Business