Steve Haskew, Group Director of Sustainability and Growth at Circular Computing, discusses trends that are set to play a significant role in shaping the sustainability landscape in 2025.
Sustainability issues have come to the fore in 2024, with consumers, businesses and governments all taking turns at the steering wheel.
Highlights have included UK and US elections influencing the future of climate action, the EU’s Corporate Sustainability Reporting Directive coming into effect, and COP29 concluding last month with a bittersweet deal.
A new year will bring fresh impetus around sustainability issues, particularly as businesses set out their agenda for 2025. However, while some trends will have staying power and play a significant role in shaping the sustainability landscape, others will fade away. Here’s what to expect in the next 12 months.
Trends that will be left behind
Sustainability as an AOB
The days when companies could treat sustainability as a ‘nice to have’ are long gone. Today, having a robust sustainability strategy is a fundamental part of corporate social responsibility and a business’s DNA. It’s not just about protecting the planet; it’s also about enhancing growth.
This year, 69% of CEOs described sustainability as a growth opportunity, reflecting Gartner’s belief that it has become a top priority in the boardroom.
Strengthening consumer sentiment, business imperatives such as investor and stakeholder demands, and changing supply chain expectations are likely to explain this push. This is especially the case as UK sustainability budgets are projected to grow at an annual rate of 12% from 2022 to 2025, an increase from 8% between 2018 and 2020.
Sustainability efforts lacking digital integration
Traditional sustainability models that fail to utilise advanced technologies such as AI are becoming obsolete.Digitalisation is becoming vital, not only for adhering to strict reporting requirements but also for yielding effective outcomes today and in the future.
Talk around AI will shift to action and implementation as it becomes an essential addition to corporate sustainability efforts. IBM reports that 90% of executives believe AI will enhance sustainability goals, and businesses are being urged to invest in tools to lower emissions and achieve climate targets.
As companies face increased scrutiny of their ESG objectives, incorporating technology into sustainability initiatives will be essential for staying on course.
Voluntary ESG commitments without financial returns
Many businesses will continue to feel themselves squeezed in 2025, with tightening budgets and increased costs. Two in five businesses with over 10 employees expect staffing costs to rise over the next three months, up 13% points from late August, according to the ONS.
Because of these economic pressures, companies will increasingly prioritise ESG strategies that offer strong ROI and operational efficiencies over sustainability initiatives focused only on compliance or reputation. Strategies will include sustainable supply chain practices that reduce logistics costs and carbon footprints, as well as waste management programs that minimise unused resources and promote a circular economy.
Other strategies include cost and carbon savings within IT procurement. Remanufactured laptops, up to 40% cheaper than new, will help companies achieve ESG goals while delivering performance equal to or better than new models.
Trends that will last into 2025 and beyond
Tightening regulations
Sustainability regulations will be tightened in 2025, meaning businesses must be on top of their game to avoid the risk of hefty fines and reputational damage.
Large businesses must be aware of the Corporate Sustainability Reporting Directive, which requires them to disclose their ESG impacts for 2025. This directive will drive accountability and transparency in how companies report on sustainability, encouraging them to ‘walk the talk’.
It is also important to consider the revised Carbon Border Adjustment Mechanism (CBAM), which will take effect on January 1. European businesses will have to use the ‘EU methodology’ to report their products’ embedded carbon footprints. This stricter approach mandates companies to provide embedded emissions data, entailing a more detailed supply chain analysis and collaboration with suppliers.
Right to repair movement
Next year, you can also expect the right-to-repair movement to gain a bigger influence in the UK sustainability debate.
To date, the UK has been behind the curve on right-to-repair legislation because it does not cover all electronic goods and products. Yet, as we start to mirror the EU’s directive requiring manufacturers to repair goods, the upcoming year should see more progress.
Encouraging consumers to return broken or malfunctioning devices to manufacturers will help to shift the ‘new or nothing’ mindset and conserve valuable resources. As proponents of a circular economy that prioritises technology reuse, our goal for 2025 is to create more opportunities for manufacturers to repair electronic items and combat the growing issue of e-waste.
Windows 10 sunsetting
Finally, on October 14 2025, Microsoft will end its support for Windows 10, and users worldwide will witness the end of an era. Though some companies may view the software’s sunsetting as a nuisance or financial challenge, it can also present them with a great opportunity for transformation, especially regarding their IT needs and environmental policies.
Aptly, the Windows 10 deadline coincides with Global E-waste Day, which should help users worldwide consider responsible recycling options when upgrading their hardware in the year ahead.
