Analysis of legislative advancements and outlook for 2025

In 2024, significant legislative developments at the European level strengthened the ESG framework, reflecting the European Union’s commitment to fostering a more sustainable economy.

  • Corporate Sustainability Reporting Directive (CSRD): This directive establishes new non-financial reporting requirements, mandating companies to disclose their social and environmental impacts.
  • European policy on green claims: Designed to prevent misleading environmental claims (known as “greenwashing”), this policy ensures the credibility and accuracy of information provided by companies to consumers.
  • Green Taxonomy: The EU has finalized the criteria for the identification of economic activities that qualify as sustainable, enhancing clarity and promoting transparency in green finance.
  • Corporate Sustainability Due Diligence Directive (CSDDD): this directive requires large companies to identify, prevent and address negative impacts on human rights and the environment across their operations.

These legislative measures highlight a growing awareness, among consumers and investors, who are now increasingly attentive to the ESG performance of businesses.

2025 outlook: emerging trends

As we move into 2025, several key trends are expected to shape the ESG landscape:

  • Strengthening transparency: Reporting practices will become more standardized, making company disclosures clearer, more comparable. Accountability for supply chains will also be emphasized, requiring increased openness and responsibility.
  • Advancing Diversity, equity and inclusion: Policies promoting salary transparency and addressing workplace discrimination are expected to gain prominence, encouraging companies to prioritize equal opportunities and diverse representation within their teams.
  • Accelerating decarbonization efforts: Addressing climate change will remain a central focus. Companies will need to intensify actions to reduce their carbon footprints and achieve carbon neutrality goals. Existing decarbonization plans will likely require revision and the adoption of concrete actions to meet the evolving targets.

This holiday season, let’s take a moment to celebrate the progress we’ve made and prepare for a new year filled with challenges to tackle and opportunities to embrace.