Last year marked a turning point in the global sustainability landscape. As government regulators and coalitions cooperated to push forward with alignment and standard-setting, organizations found themselves navigating a rapidly evolving compliance environment while also realizing the strategic value of embedding sustainability deeper into their operations. This convergence of policy, accountability, and ambition set the tone for a year of both facing challenges and building resilience.
Looking back, 2025 highlighted how regulation, technology, and climate action are beginning to intersect in more consistent and practical ways. While the path forward remains complex, the developments of the past year offer a clearer sense of how organizations, policymakers, and innovators are collectively shaping the future of sustainability, resilience, and transition.
Regulatory changes and continued alignment between frameworks
Planned policies such as California’s SB 253 and SB 261 and the EU’s CSRD saw delays and pushback this year, leading to some changes in requirements and timelines. At the same time, many global sustainability-related regulations are continuing to move forward with standardization and alignment. Several countries formally adopted the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) in 2025, including Australia, Brazil, and Malaysia, and the TCFD recommendations are being referenced in many other laws and standards, such as California’s SB 253 and 261, ESRS, and IFRS S1.
This overall standardization and move toward alignment reflects stakeholder demand for reliable, decision-useful sustainability data, pushing climate accountability and risk management into mainstream corporate reporting.
Learn more about regulatory updates and alignment:
- From A to Z: Navigating the Complex World of Voluntary and Mandatory Sustainability Disclosure
- Leveraging CDP and Science-Based Targets for Climate Regulations
- What Everyone Misses About Progress in Sustainability Disclosure
- ISSB, IFRS S1, and IFRS S2 Explained: A Unified Framework for Corporate Sustainability Disclosure
The forefront of climate resilience
In 2025, climate resilience became a defining corporate sustainability trend, shifting focus from mitigation to adaptation, risk management, and prioritization. As demand for information on corporate climate risk rises, companies increasingly treat resilience as a core business strategy, integrating it into supply chain management, planning, and governance.
Learn more about how the team at ADEC ESG helped our client better understand its emissions-related risks and adaptive capacity, prioritize emission reduction initiatives, and build its sustainability program from the ground up.
Climate and energy transition
In 2025, corporate climate action continued to grow as companies adapt to climate risks and prepare for a low-carbon future. The Science Based Targets initiative reported that in 2025, the number of companies with validated near-term SBTs increased by 97% compared to the end of 2023. The number of companies with both near-term and net-zero targets also increased by 227% over the same time period. In addition, investors continue to seek out information on climate risk and systematically identify companies that are better managed, resilient, and adaptable to change.
Learn more about emissions reduction targets, net-zero planning, and climate transition plans with our free, on-demand webinars:
- Leveraging CDP and Science-Based Targets for Climate Regulations
- Climate Transition Plans and CDP: Creating a Value-Building Cycle
Looking ahead to 2026
As we look toward 2026, the sustainability landscape shows no signs of slowing, as regulatory expectations continue to change and evolve, investor demands sharpen, and the pressure to demonstrate action on climate risks becomes grows. ADEC ESG’s focus continues to be our clients: supporting each organization as it navigates this complex journey, strengthening sustainability programs, and building resilience into strategy and operations.
Follow us on LinkedIn for the latest in sustainability and climate news and updates—and to learn more about how we help companies like yours thrive in this constantly changing landscape.
This blog provides general information and does not constitute the rendering of legal, economic, business, or other professional services or advice. Consult with your advisors regarding the applicability of this content to your specific circumstances.
