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: the first disclosures are due in mid-2025, requiring standardized, externally assured ESG data.
- AI & big data powering decision-making
Artificial intelligence is transforming sustainable finance and environmental analytics. AI technologies help businesses identify climate risks, measure impact, and shape S4B-linked products, though they also raise important issues around transparency and governance. Additionally, big data adoption is accelerating ESG investing by enabling more detailed measurement and better capital allocation, particularly in emerging markets.
- 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.
Why it matters for hospitality & travel
- Compliance & disclosure: Hospitality firms operating globally must prepare robust sustainability disclosures and avoid greenwashing pitfalls.
- Operational integration: Embedding circular economy principles, biodiversity protection, and resilience strategies into operations can create substantial competitive advantages.
- Talent & social strategy: Strengthening employee well-being, equity, and social justice policies help attract both staff and socially conscious guests.
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