Sustainability Insight
What’s next in sustainability: top trends shaping 2025
September 2025
Sustainability is no longer a niche choice, it’s a strategic imperative woven into the fabric of business, policy, and consumer expectations.
Investors are demanding transparency, regulators are setting stricter disclosure requirements, and customers are increasingly choosing brands that align with their values.
The conversation has shifted from “why” sustainability matters to “how” it is embedded across operations, governance, and long-term strategy. At the same time, technological innovation, regulatory convergence, and growing climate risks are accelerating the urgency for action.
Here’s a look at the most important forces driving lasting change:
- IFRS S1 & S2 – Setting the global sustainability standards
The IFRS Sustainability Disclosure Standards (S1 and S2), effective from 2025, establish a global baseline for reporting. IFRS S1 provides overarching requirements for sustainability-related financial disclosures, while IFRS S2 focuses on climate-specific risks and opportunities, aligned with TCFD principles. Together, they are driving convergence across jurisdictions, offering investors consistent and comparable information, and setting clear expectations for businesses worldwide.
- Mandatory ESG reporting & regulatory convergence
The EU’s Corporate Sustainability Reporting Directive (CSRD) marks a significant turning point, with the first standardized and externally assured ESG disclosures due in mid-2025, while governments and regulatory bodies, particularly in Europe, push for ever more rigorous reporting standards, even as policy instability and geopolitical tensions around trade, energy and subsidies complicate sustainability pathways and create both risks and opportunities.
- AI, Data, Digital Tools in Sustainability
As AI models, large data centers and cloud infrastructure expand rapidly, organizations are not only under pressure to cut IT’s environmental footprint—by optimizing data centers, sourcing renewable energy for servers and making hardware more repairable—but are also harnessing artificial intelligence, advanced data analytics and digital twins to track and forecast emissions, run carbon accounting, optimize operations and simulate energy usage for scenario testing and risk management without the need for physical trial-and-error.
- Greenwashing crackdown
Regulators worldwide, particularly in the EU, are intensifying oversight to combat greenwashing. Companies face increased scrutiny over sustainability claims, making transparent, validated disclosure crucial. Businesses must carefully substantiate their sustainability narratives to mitigate rising litigation risks.
Blockchain, satellite monitoring, IoT devices are being more widely employed to trace supply chains, verify environmental claims, ensure sustainability certifications are robust.
Consumers want proof, not just promises.
- Energy Transition & Clean Technologies Scaling Up
Despite challenges (cost, infrastructure, political pushback), renewables (solar, wind), battery storage, and green hydrogen are accelerating. The rate of new renewable energy installations is increasing, though unevenly across countries.
There is also growing interest in technologies like nuclear (whether small modular reactors or more reliable existing plants) in regions looking for low-carbon baseload.
- Equity, Justice, Social Dimensions
Just Transition: making sure communities and workers dependent on high-emitting sectors are not left behind. Inclusion in policy and sustainability action: marginalized communities, water access, health impacts, etc.
Why it matters for hospitality & travel
- Regulatory compliance & market access: hospitality companies operating globally must meet tightening disclosure requirements and avoid greenwashing by preparing robust, verifiable ESG reports, ensuring they can access key markets and satisfy investor expectations.
- Resilience & risk management: integrating circular economy principles, biodiversity protection and climate-resilience strategies strengthens operations, reduces vulnerability to climate shocks and delivers measurable cost savings through resource efficiency and waste reduction.
- Brand reputation & consumer trust: transparent, authentic sustainability credentials and ethical practices resonate with socially conscious guests, reinforcing brand value and helping build long-term customer loyalty.
- Talent & social strategy: strengthening employee well-being, equity and social justice policies helps attract and retain top talent while appealing to travelers who value socially responsible businesses.
- Innovation & competitive edge: leading in sustainable supply chains, low-impact materials and new business models allows hospitality and travel firms to capture emerging markets, differentiate their offerings and secure a lasting competitive advantage.
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