Client Alert: Sustainability Market Update - Key Trends Shaping 2025

/ KERAMIDA Inc./

As sustainability and regulatory expectations continue to evolve at a rapid pace, staying ahead is more important than ever. KERAMIDA’s Sustainability team has identified the key trends shaping climate disclosure, supply chain requirements, and corporate sustainability strategies in 2025 – insights that can help organizations not only stay compliant but also unlock growth opportunities and strengthen their market position.

Below are the factors driving sustainability in 2025:

CDP, Supply Chains, & Financial Incentives

  • CDP is now aligned with the International Sustainability Standards Board (ISSB) International Financial Reporting Standards (IFRS) S1 & S2, California (CA) Laws, and the EU’s Corporate Sustainability Reporting Directive (CSRD).

  • Large companies are pushing suppliers to set Science-Based Targets (SBTs) with staggered KPIs based on their sustainability maturity.

  • CDP data is driving financial incentives – companies participating in CDP’s supply chain program get better financing rates and more flexible payment terms from their customers.

  • Revenue at Risk / Lost Revenue: More companies are tracking contracts lost due to a lack of sustainability commitments.

Nature Transition Plans & CSRD Updates

  • The World Wildlife Fund (WWF) has outlined key elements of a Nature Transition Plan to support biodiversity goals by 2030.

  • CSRD updates are expected on February 26th, with potential delays until March.

  • Early CSRD Compliance Strategy:

    • Descope non-relevant topics early using European Sustainability Reporting Standards (ESRS).

    • Position CSRD as a business risk and opportunity strategy for leadership buy-in.

    • “Responsible business” rather than "sustainable" framing appeals across political lines.

CSRD & Data Management Approaches (Insights from Early Adopters)

  • Key Implementation Teams:

    • CSRD Steering Committee – Defines thresholds, impacts, risks, and opportunities (IROs).

    • Operational Implementers – Manage communication and execution.

    • Audit Committee – Engaged early, often using a company’s financial auditor for CSRD validation.

    • Departmental Subject Matter Experts (SMEs) – Needed to verify data accuracy.

    • Board of Directors – Must be involved from the start.

  • Assurance Best Practices:

    • Engage auditors early and hold weekly meetings to define compliance expectations.

  • CSRD Strategy Alignment:

    • Research peer companies' materiality disclosures for benchmarking.

    • Double Materiality Assessment (DMA) process helps de-silo sustainability by engaging multiple stakeholders.

Staying ahead of these developments is crucial as regulatory frameworks and industry expectations continue to shift. KERAMIDA’s experts are here to help organizations navigate climate disclosures, supply chain requirements, and sustainability strategy development.

For more insights or guidance on how these updates may impact your business, reach out to our team.

Contact

Nick McCreary, MS, LEED AP
Senior Vice President, Sustainability
KERAMIDA Inc.

Contact Nick at: nmccreary@keramida.com

Amber Greaney, MPA, LEED GA, ENV SP
Vice President of Market Development, Sustainability
KERAMIDA Inc.

Contact Amber at: agreaney@keramida.com