Businesses confronted with skepticism regarding sustainability should shift their priorities, yet maintain their core values intact.

In the dynamic world of business, sustainability has never been more critical to a company's bottom line. The sustainability agenda is buffeted by multiple crosswinds, and companies that come through this period of change healthy will be the ones that stay true to their principles while showing how their efforts improve business performance as they rapidly adapt in how they pursue them.

The global economy is experiencing significant shifts in 2025, affecting public policy and geopolitics. Incumbent parties performed poorly in the 2024 elections, and policymakers are implementing new laws that often conflict with those of other countries where businesses operate. Economic integration, which was previously assumed to reduce conflict, is now questionable due to the rise of nationalist trade policies.

The climate crisis and biodiversity loss have "mainstreamed" extreme weather, leading to rising economic costs, social dislocation, and risks to infrastructure. The financial costs of the climate crisis pose a significant threat to business planning. Tensions between major powers, including the US and China, are at a high level, and global cooperation is struggling. The rule of law remains essential for business, with democratic decline evident in many corners of the world.

Amidst these challenges, sustainability professionals now work at the intersection of business and government. They are tasked with addressing the expectations of employees, who expect their companies to address sustainability issues. According to a recent survey, 61% of staff want to see their companies do more to address climate and diversity. No business can afford to ignore that their employees and customers are diversifying.

The architecture of sustainability regulations is significantly more robust than it was at the dawn of the 2020s. Regulators across Asia require climate disclosure, European regulators are sustaining and streamlining the approach across the EU, and American states and cities are setting important rules. Companies should update how they think about sustainability by focusing more attention on business value, measuring financial impact, and promoting innovation. They should keep ambitious commitments but communicate uncertainties, shift the narrative to address the needs of the average person, stand firm with investors on the importance of creating value and resilience for the long-term, and respect the basic principle that the rule of law remains sacrosanct.

The story's tags include economy, sustainable development, sustainable finance, climate risk, and it is related to SDG 13: Climate. The sustainability dynamic in 2025 can be categorized into five areas of change: Economics, Emerging technologies, Environment, Geopolitics, and Public policy.

In the realm of emerging technologies, Generative AI and other technologies are poised to have profound impacts on energy markets, global relations, and the nature of work. Companies and institutions that have significantly promoted sustainability in Asia and Europe in recent years include European start-ups supported by the Circular Economy Accelerator of the Circular Valley Foundation, such as PROSERVATION, BIOWEG, Biomyc, NYUNGU AFRIKA, Midwest Composites, and Vlastic, which develop sustainable materials from waste and biomaterials. COMPO, a leading European plant product provider, achieved Gold status in the EcoVadis sustainability rating for responsible business practices along its value chain. The Leibniz Centre for Agricultural Landscape Research (ZALF) advances sustainable agricultural technologies and food systems focused on biodiversity and climate protection.

A multi-trillion-dollar opportunity exists for companies addressing climate and nature, whether incumbents or new entrants, that deliver needed products and services for resilience. The US government is fostering a rhetorical and policy attack on "illegal DEI," but gender equality remains a business imperative, especially in markets in Asia which are further behind on diversity. The sustainability dynamic in 2025 is a call to action for businesses to adapt, innovate, and lead in the face of these challenges.

Businesses confronted with skepticism regarding sustainability should shift their priorities, yet maintain their core values intact.