Last month we sponsored a webcast ‘Navigate the ESG Evolution: Lessons and Strategic Priorities for 2025’ hosted by the Trellis Group to equip sustainability leaders with insights on the regulatory landscape and strategic best practices for the year ahead. Malcolm Glenn, US Policy Consultant at GRI, Suzanne Fallender, Vice President of Global ESG at Prologis, and Datamaran’s VP of Research & Sustainability, Ian van der Vlugt, joined the webcast moderated by Trellis Group’s Network President, John Davies.
The discussion covered key trends, best practices, and strategies for 2025. Here’s a summary of the pivotal points for those who missed it or would like a recap.
Key Trends in ESG for 2025
ESG is no longer just a sustainability or PR issue - it's a core strategic challenge requiring careful coordination between boards and executive teams. In short: it’s about governance. While boards focus on oversight and risk management, executive teams must translate ESG commitments into operational reality while managing stakeholder communications. This dual responsibility is complicated by shifting regulatory landscapes, evolving disclosure requirements, and increasing stakeholder scrutiny.
1. Regulatory dynamics are fragmented but remain a driver of corporate action
The regulatory landscape continues to grow more complex. The EU's 2024 policy focus on climate and data privacy contrasts with US priorities like AI governance and labor rights. In the US, there are fairly clear signals from the incoming administration and its approach to ESG issues. Companies must navigate these dynamics proactively, aligning their strategies with both regional and global requirements.
2. In light of these dynamics, companies need more integrated and defensible strategies
Double materiality is gaining traction as a solution and best practice, balancing financial materiality with impact materiality. The outcome of a double materiality assessment is a more granular view of material risks, opportunities, and impacts for the business, providing a more defensible basis for business decisions. This approach not only ensures compliance with regulations like the Corporate Sustainability Reporting Directive (CSRD) but also aligns ESG strategies with long-term value creation.
3. There will be an increasing focus on due diligence in value chains
Environmental and human rights due diligence across the value chain is becoming a critical expectation, driven by regulations such as the EU's Corporate Sustainability Due Diligence Directive (CSDDD). Companies must strengthen governance to assess and address upstream and downstream impacts.
4. Climate and nature will remain front-and-center
As our understanding of the science continues to mature, and the negative repercussions of climate and nature-based impacts worsen, these issues will remain key focus areas for regulators and other stakeholders. Companies will be expected to provide more details on the impacts they’re having and the risks and opportunities these present to their business and be clearer on the foreseen trade-offs as they plan their transitions.
Best Practices for Success
1. Strengthening ESG and Finance Integration
Sustainability and finance teams must work hand-in-hand. ESG leaders can learn from finance's robust data governance and control processes, while finance professionals can gain insights into ESG risks and opportunities. Building these cross-functional bonds is key to integrated ESG governance.
2. Leveraging Technology for Data-Driven Monitoring
Robust, tech-enabled systems are essential for collecting, analyzing, and reporting the relevant ESG data on an ongoing basis. Platforms like Datamaran enable businesses to track regulatory changes, perform gap analyses, and monitor material impacts, risks, and opportunities in real-time.
3. Collaborating Across Functions
A successful ESG strategy requires buy-in and support across departments. Companies like Prologis have restructured governance teams to include more diverse perspectives, with representatives from teams such as operations, IT, and different geographical regions, ensuring a holistic approach to ESG.
Opportunities Amid Challenges
Despite political uncertainties, the panelists emphasized that ESG is a long-term imperative. Investors and customers are demanding more transparency and ambitious goals, creating a competitive edge for companies that excel in corporate sustainability. For instance, Prologis is leveraging its vast logistics network to help customers meet net-zero targets, offering services like green energy solutions and EV infrastructure.
Looking Ahead in 2025
The webcast underscored the importance of aligning ESG strategies with broader business goals. Companies that proactively adapt to evolving regulations and stakeholder expectations will not only ensure compliance but also unlock new opportunities for innovation and growth.
You can register to watch the webcast on-demand on the Trellis Group website or explore our resources on double materiality and ESG monitoring.