Global CSR Trends

10 Sustainability Trends to Watch 🌎 Sustainability is no longer a peripheral concern but a key driver of business strategy, shaping how companies operate and compete in today’s market. The intersection of regulatory shifts, investor expectations, and consumer demands is pushing businesses to integrate sustainability more deeply into their core operations. As the global landscape evolves, several trends are emerging that will define the future of corporate sustainability. Decarbonization and climate adaptation are becoming central to long-term planning. Companies are not only expected to reduce their carbon emissions but also to build resilience against climate risks. This shift is being driven by stricter regulations and global climate commitments, forcing businesses to take proactive steps in emission reduction and climate-proofing their operations. Biodiversity and nature conservation are gaining momentum as businesses recognize the importance of protecting ecosystems. Practices like regenerative agriculture and habitat conservation are no longer niche but are increasingly integrated into corporate strategies to address biodiversity loss and enhance ecosystem services. Companies investing in these areas are positioning themselves as leaders in environmental stewardship. In response to rising regulatory pressure, greenwashing is under intense scrutiny. Claims of environmental responsibility must now be backed by verifiable data, and companies face significant legal and reputational risks if found to be misleading. This trend reflects a broader shift toward greater transparency and accountability in sustainability reporting. Supply chain sustainability is evolving beyond direct operations, with companies focusing on reducing environmental impacts across the entire value chain. Managing Scope 3 emissions is becoming a priority, and new technologies are enabling businesses to track and reduce these emissions more effectively. As a result, sustainable supply chains are now critical to meeting both regulatory requirements and consumer expectations. The role of technology in sustainability is also expanding. AI and data analytics are playing an increasingly important role in optimizing resource use, tracking sustainability performance, and identifying opportunities for carbon reduction. These tools are helping companies make data-driven decisions and improve their environmental impact, positioning technology as a critical enabler in achieving sustainability goals. As sustainability continues to reshape industries, companies that stay ahead of these trends will not only meet regulatory demands but also gain competitive advantage by demonstrating leadership in responsible business practices. #sustainability #sustainable #business #esg #climatechange #climateaction 

We’ve called efficiency the unsung hero of the energy transition in the past. While the energy transition will happen first through the transition of energy usages, like the shift with transport, from internal combustion engines to electric vehicles, or from fuel or gas boilers to heat pumps, we cannot ignore the utmost priority of the energy transition: efficiency. Efficiency is the greatest path to reduce our energy use, our impact on the world’s climate through CO2 emission reduction, and very importantly, the best way to make solid and practical savings. In its most historical form, energy efficiency is about better insulation, to reduce heating (or cooling) loss in buildings like family homes, warehouses, office high rises, and shopping malls. This is useful, but expensive and tedious to realize on existing installations. Digitizing home, buildings, industries and infrastructure brings similar benefits at a much lower cost and a much higher economic return. The combination of IoT, big data, software and AI can significantly reduce energy use and waste by detecting leaky valves, or automatically adjusting heating, lighting, processes and other systems to the number of people present at any given time, using real-time data analysis. It also allows owners to measure precisely progress, report automatically on their energy and sustainability parameters, and benefit from new services through smart grid interaction. And this is just the energy benefit. Automation and digital tools also optimize the processes, safety, reliability, and uptime leading to greater productivity and performance.

The cost of decarbonisation is shifting—and so is the competitive landscape. Goldman Sachs' latest Carbonomics report highlights a two-speed decarbonisation path: while technologies like batteries, solar and biofuels continue to fall in cost, hard-to-abate sectors such as steel, cement and chemicals are facing rising decarbonisation costs—especially those dependent on green hydrogen. One of the most striking findings: localising clean tech supply chains could raise decarbonisation costs by up to 30%. Tariffs of over 100% would be required to make Western production of solar panels and batteries cost-competitive with imports. The tension between industrial policy, energy security and climate ambition is growing. So, why should industry press ahead with decarbonisation now? Because the commercial rationale is stronger than ever: Cost leadership: Access to cheaper renewable energy, falling battery prices and maturing biofuels can lower input costs—particularly in energy-intensive sectors. Market access: Regulations such as the EU Carbon Border Adjustment Mechanism (CBAM) are making low-carbon production a requirement for global competitiveness. Resilience and control: Investing early in clean infrastructure and diversified energy sources reduces exposure to fossil fuel volatility and geopolitical risk. Customer and investor pressure: Procurement standards and financing conditions are increasingly tied to measurable decarbonisation progress. While policy uncertainty and supply chain politics remain real barriers, the business case for low-carbon strategy is becoming clearer—and more urgent. For companies in heavy industry, the next five years will be pivotal. Not just for compliance—but for margin, access, and long-term value. #decarbonisation #carbonomics #industrytransition #climatetech #energytransition #greeneconomy #sustainabilitystrategy #cleanenergy #cbam #netzero #goldmansachs

The world isn’t ready for what’s coming next in sustainability data. We’re quietly living through the creation of a financial infrastructure for sustainability—and it’s happening faster than most realize. Over 2,000 sustainability regulations have emerged globally in the past decade, with a 155% surge in ESG-related rules since 2018. This isn’t just about compliance—it’s a fundamental shift in how we define value, risk, and performance. What’s driving it? • EU: CSRD & ESRS will impact over 50,000 companies, embedding double materiality. • India: BRSR Core is mandatory for top 1,000 listed firms. • China: CSDS expands carbon reporting in high-impact sectors. • California: SB 253/261 reshape U.S. climate disclosures. • Australia: AASB S2 aligns with IFRS S2, effective in 2025. • Brazil: CVM 193 adopts IFRS-aligned sustainability standards. • And more: Japan, Canada, Singapore, Nigeria, Turkey—all aligning with global standads. We’ve entered a phase where climate, nature, and transition risks are becoming embedded in financial decision-making—from underwriting and M&A to risk pricing and insurance modeling. In the real estate sector, GRESB has made third-party verified performance data (GHG, energy, water, waste) a best practice. ESG metrics are now more embedded in due diligence for loans, equity, and new acquisitions. Yes, today’s data is often backward-looking. And yes, we still need science-based thresholds and stronger assurance. But this foundational work is what allows us to get there. Without reliable, standardized, machine-readable data, we can’t scale action, track progress, or hold anyone accountable. Just as GAAP and IFRS created trust in financial markets, IFRS S1/S2, CSRD, and the GHG Protocol are setting the stage for credible, comparable sustainability data. It will not be a “parallel system.” in the future. We are building the groundwork for full integration into the global financial system. This shift will transform: • How we price risk • How capital is allocated • How resilient companies are rewarded • How we define long-term value creation It’s messy. It’s political. It’s imperfect. But it’s also historic. If you’re in this space, you’re not just reporting data—you’re helping build a new operating system for business and capital markets. One that rewards transparency, resilience, and climate alignment. Let’s keep building—with more rigor, more ambition, and more impact.

Our global study on the state of trust in scientists in 68 countries is now out in Nature Human Behaviour! 🥳 Given narratives of a crisis of #trust in scientists, Niels G. Mede and I launched and led the Trust in Science and Science-Related Populism (TISP) Many Labs study to investigate trust in scientists around the world. With a consortium of 241 researchers at 179 institutions, we surveyed 71,922 individuals in 68 countries, providing the largest dataset on trust in scientists post-pandemic: https://lnkd.in/d9WsA5AN Here are some key findings: 💡 Across 68 countries, trust in scientists is moderately high (mean trust = 3.62, on a scale from 1 = very low trust to 5 = very high trust), with strong differences across countries. Our study confirms and strengthens previous work that refutes the narrative of wide-ranging low trust in scientists. 👐 Majorities perceive scientists to be qualified (78%), honest (57%), and concerned about people’s well-being (56%). 🗣️ 83% of respondents believe that scientists should communicate about science with the general public. 📣 49% believe that that scientists should actively advocate for specific policies (23% disagree). 52% believe that scientists should be more involved in the policymaking process (22% disagree). ➡️ Check out the TISP app for country-specific results: https://lnkd.in/dVbYyYhD ➡️ For more information on the TISP Project: https://lnkd.in/dUtZBCfY ____ On a more personal note: Leading the TISP-Consortium has been an incredibly rewarding experience. I’m deeply grateful to everyone who contributed to making the TISP project a success—it was a truly collaborative effort. A special thanks goes to the study co-lead Niels G. Mede, whose dedication and kindness made all the difference.  I also want to express my heartfelt gratitude to the TISP Core Team—our advisory board of nine experts—who played a pivotal role in shaping the project's success, providing guidance on all sorts of matters, and always having an open ear: Sebastian Berger John C. Besley Cameron Brick Marina Joubert Ed Maibach Sabina Mihelj Oreskes Naomi Mike S. Schäfer Sander van der Linden The biggest thanks go out to the many co-authors for their trust (🥁 pun intended), patience, and support. This would not have been possible without all of you. Special thanks go to Oreskes Naomi for hosting me at Harvard University for two years (funded by the Swiss National Science Foundation SNSF). Leading such a big project on short-term postdoc contracts was professionally and personally challenging at times, and I am grateful to the SOCRATES CAS at University of Hanover, Mike S. Schäfer and his team at UZH Department of Communication and Media Research (IKMZ), David N. Bresch and the Weather and Climate Risks Group at ETH Zürich, and the Collegium Helveticum and its fellows, for their support in the final year of the project. 🙏

What do younger women's experiences at work tell us about social progress? This is an important question because there's a widespread belief that progress unfolds automatically and steadily, and that each successive generation will become more egalitarian and enjoy more opportunities than the last. According to this view, reaching gender equality is “inevitable”; it just takes time. But the 2024 Women in the Workplace 10th anniversary report by LeanIn.org and McKinsey & Company tells a different story. The report provides a 10-year lookback at the state of women in corporate America. When it comes to women's experiences at work, we found that there's been almost no improvements across generations. In fact, not only are the experiences of women under 30 similar to those of women 50 and older, in some ways, they’re worse. Along with my brilliant colleague, Priya Fielding-Singh, we wrote about these findings in Harvard Business Review. There are many key takeaways when it comes to barriers to younger women's advancement, but I want to call attention to these two: ✔ Sexual harassment remains a significant problem. Despite younger women’s much shorter tenures, a third of them have experienced some form of sexual harassment over the course of their careers — the same as older women. ✔ The next generation of men doesn’t appear to be pushing for change. While the younger women in our study stand out as the most committed to gender and racial diversity issues, younger men are clearly the least. And over the past five years, the percentage of younger men who claim gender and racial diversity as high personal priorities also declined significantly. The problem with the belief that progress is inevitable is that it leads to inaction. Concerningly, we found that companies’ commitments to diversity are the lowest they've been in years. History shows us is that social change requires deliberate and sustained efforts. If we want daughters to have it better than their mothers and grandmothers, we need to take off our rose-colored glasses and roll up our sleeves. Check out our post for more on the findings and what companies must do to address the distinct obstacles that stall women’s progress early in their careers. #genderinequality #sexualharassment #womenintheworkplace2024

The Financial Times moral money about cleaner #capitalism in 2024. Or at least the trends that will influence sustainable finance (for cleaner capitalism you need much more): 🔵 𝗦𝘂𝗽𝗽𝗹𝘆 𝗖𝗵𝗮𝗶𝗻 𝗗𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲𝘀: Companies are expected to focus on assessing environmental and social risks in their supply chains in 2024, driven by looming regulations on scope 3 emissions. Larger EU companies will be required to disclose (#CSRD) scope 3 emissions from 2025, and similar regulations are emerging in California and potentially the US and UK. 🔵 𝗖𝗮𝗿𝗯𝗼𝗻 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗠𝗼𝗺𝗲𝗻𝘁𝘂𝗺: The global momentum for #carbonpricing is increasing, with the EU leading the way. The introduction of a "carbon border adjustment mechanism" and discussions in the US suggest a potential shift towards a global carbon pricing regime. However, this approach faces pushback from developing nations, raising concerns about climate justice. 🔵 𝗘𝗦𝗚 𝗕𝗮𝗰𝗸𝗹𝗮𝘀𝗵 𝘁𝗼 𝗗𝗘𝗜 𝗔𝘁𝘁𝗮𝗰𝗸𝘀: Republican-led states in the US, having previously targeted #ESG, are now shifting their focus to Diversity, Equity, and Inclusion (#DEI). Laws banning DEI departments in state universities and plans for anti-DEI bills indicate a potential expansion of attacks beyond environmental concerns to social aspects, posing challenges for companies. 🔵 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀: #COP29 in Azerbaijan will spotlight the need for international climate finance, especially in developing nations. Attention will be on multilateral lenders like the World Bank, their focus on climate-related projects, and efforts to mobilize private-sector investment. 🔵 𝗘𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆: A series of elections globally will have significant implications for corporate sustainability and ESG investing. Key elections include Taiwan, Indonesia, India, the European Parliament, Mexico, South Africa, and a US election where a potential Trump victory could impact climate policies. I want to add to this list: 🔶 𝗘𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁𝗮𝗹 𝗿𝗶𝘀𝗸𝘀 𝘄𝗶𝗹𝗹 𝗺𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝗶𝘀𝗲 more on balance sheets, potentially prompting capital reallocation.🌐🔄 🔶 Decisive year for 𝗡𝗮𝘁𝘂𝗿𝗲-𝗯𝗮𝘀𝗲𝗱 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀: will a market-standard emerge for 'good' #naturebasedsolutions that regenerate nature and #greenwashing diminished?🌱 🔶 𝗘𝗦𝗚 𝗮𝗻𝗱 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗮 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗲𝗰𝗼𝗻𝗼𝗺𝘆: will this year become clear that the largest part of sustainable finance (ESG in all sorts) does not bring a sustainable world any closer?🌍 🔶 𝗔𝗜 𝗮𝗻𝗱 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗲: Will it help to bring more transparency, better risks assessments and more impact?📈 And as always, there is probably much more...but the most important stuff will not be what happens in the industry itself. It is what all that money (with this year lower rates) can do for the future of the real economy.

'Conservation pays and everyone’s benefitting from it' - a perspective from Costa Rica 🇨🇷. In commentary published today on Mongabay, Diego Vincenzi, current chief of staff for the Minister of Environment and Energy in Costa Rica (Ministerio de Ambiente y Energía (MINAE), Gobierno de Costa Rica), highlights how Costa Rica halted deforestation, worked to restore forest cover to 57% after reaching a low of 21% in the 1980s, and protected 25% of its land while becoming the top per capita agricultural exporter in Latin America. He also notes the Central American nation's agricultural sector "produces net zero emissions". Costa Rica’s success stems from a shift in the 1990s towards greener environmental legislation, introducing the Payment for Ecosystem Services (PES) scheme funded by a fossil fuel tax, which compensates landowners for forest conservation and now includes untitled lands, benefiting native populations. "Years ago, we discovered that conservation pays. For some, this notion might sound contradictory, but for us Costa Ricans, it’s a reality," he writes. "During the 1990s, environmental legislation in Costa Rica shifted towards a greener framework. We moved from a 'subsidy' concept in forest conservation to an 'economic recognition' of the ecosystem services our forests provide." FONAFIFO, the institution managing PES, is now expanding the program. Vincenzi notes: 🌿 "PES now pays for land that has not been titled. This directly benefits many of our native populations and people who have possession of the land but have not claimed property rights. We are extending conservation efforts to everyone involved in conserving." 💲 FONAFIFO is merging all funding sources to strengthen the program. 🌳 The PES program is expanding from 40,000 to 182,000 hectares per year. 🦉 Costa Rica is recognizing biodiversity in forests under PES: "We will create biodiversity certificates for estates that protect their forests and, by extension, biodiversity." 🌊 Costa Rica plans to incorporate mangroves into the program. Read Vincenzi's piece: https://lnkd.in/dDaz_PaV

🔮𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝟮𝟬𝟮𝟱 𝗵𝗼𝗹𝗱 𝗳𝗼𝗿 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗮𝗰𝘁𝗶𝗼𝗻? The urgency of climate change is undeniable. With rising global temperatures, more frequent and intense extreme weather events, and the growing threat to biodiversity, the need for immediate and significant action is more crucial than ever. 2025 is poised to be a pivotal year in the fight against climate change. Some key trends I expect to see: ⛈️ Increased focus on climate resilience: As extreme weather events intensify, there will be a greater emphasis on adapting to climate change impacts. This includes building resilient infrastructure, developing drought-resistant crops, and protecting vulnerable communities. 🌳The rise of nature-based solutions: Reforestation, wetland restoration, agroforestry, and urban greening will gain traction as effective and cost-effective climate solutions, offering multiple environmental and social benefits. ⚡Accelerated renewable energy adoption: The transition to renewable energy sources and electric vehicles will continue to accelerate, driven by falling costs, supportive policies and the need for energy security. 🧠 AI-powered climate action: Artificial intelligence (AI) will play an increasingly critical role in climate action, from optimising renewable energy grids and improving weather forecasting to developing more efficient carbon capture technologies and accelerating the discovery of new climate solutions. 🟩 Increased scrutiny of greenwashing: With the implementation of new regulations like the EU Green Claims Directive and similar legislation emerging in other parts of the world, scrutiny of greenwashing claims will intensify. Companies will need to ensure their sustainability claims are accurate, verifiable, and backed by robust evidence to avoid penalties and reputational damage. 🔽 The rise of carbon removal technologies: Direct Air Capture (DAC) and other carbon removal solutions will see significant advancements, playing a crucial role in achieving net-zero emissions. 🗎 Evolving sustainability reporting: With the initial reporting requirements for the EU Corporate Sustainability Reporting Directive (CSRD) coming into effect, along with other regulation around the world, companies will face increased pressure to enhance their sustainability reporting practices. This will necessitate significant investments in data collection and assurance. What did I miss? #sustainability #climatechange #climateresilience #renewables #AIforClimate #carbonremoval #CSR #ESG #2025trends

There is a massive gap in trust in AI between English-speaking/ Western European nations and Eastern/ emerging economies. An array of specific insights from Edelman's latest Trust Barometer report reveal fundamental forces that will shape the global future of AI. Some of the highlights from the report: 🍀 The countries with the least trust in AI are Ireland (24%), Australia (25%), UK, Netherlands, Germany, Canada, and US. 📈 The high-potential emerging economies such as Nigeria (76%), India (70%), Thailand, China, Indonesia, Saudi Arabia and Kenya have the greatest trust, reflecting the positive potential they see. 🚩 China has 40% higher trust in AI than the US. 👶 Younger people globally are notably more comfortable with business AI usage than older generations (51% vs. 35%). 💸 Higher-income individuals globally show significantly higher comfort levels (51%) with AI in business compared to lower-income groups (38%). 🔻 Enthusiasm for AI has dropped from fairly high levels in Malaysia (-11%), Nigeria, China, and Japan, and reduced substantially from already low levels in Australia (-5% to 10%) and Italy. ⚡ Political and economic uncertainties correlate with higher AI trust, suggesting people look to AI for solutions during uncertain times. 🔒 Countries where people express high societal grievances have AI trust reduced by up to 22%. 💼 Tech companies outperform general businesses in perceived ethical standards and competence by a significant margin (ethical score: +23 vs. general businesses). Attitudes in the population flow through to politics, regulation, business adoption, consumer uptake, and economic impact. Take this data into account as you consider the likely futures of AI in business and society.