As we step into 2025, the United States have once again withdrawn from the Paris Agreement and some of the industry’s most prominent voices such as Willie Walsh (head of airline trade body IATA ) and Sir Tim Clark (Emirates president) have raised concerns on aviation’s ability to reach key environmental targets.
All this against the backdrop of record global temperatures and unprecedented climate disasters with warnings from global experts that we must now decarbonise at a rate twenty times faster if we are to limit global warming to 1.5°C.
In the face of these developments, it is fair to ask whether the wind has gone out of the sails of sustainability? From recent conversations with industry partners and our own research into sustainability trends, we can categorically say that no, sustainability is not losing momentum. A lot of challenges will be shaping the sustainability landscape in the next 12 months and these challenges will most certainly call for new solutions and evolution in sustainability strategies.
Here are 5 important ESG trends we are expecting to see in 2025:
1. Reporting and new regulatory frameworks
2025 will mark a milestone in mandatory ESG and sustainability reporting as the first year of reporting under the EU’s Corporate Sustainability Reporting Directive (CSRD). Although the first phase of the CSRD roll out will only affect certain large companies, the framework will likely initiate a wider shift away from voluntary, qualitative sustainability reports toward mandatory and data-driven ones. These new reports will call for more robust data collection, reporting processes, and governance to ensure that the results presented are genuine and to maintain credibility and trust with investors, consumers and regulatory bodies.
2. Actions, not words
The new reporting requirements are also likely to prompt companies to re-assess their net zero commitments, including those made as part of sector alliances, and move away from high-profile public commitments toward more results-focused and data driven initiatives. We can therefore expect 2025 sustainability to be more focused on tangible results and achievable short-term goals. For more legitimacy, impact and effectiveness, airlines and other companies have started to integrate sustainability into core business functions and build it as a set of cross-functional responsibilities. Adopting this mindset will help align sustainability goals with other business KPI and move away from the ‘short term profitability vs. long terms sustainability investment’ debate companies have been facing. According to PwC Global Investor Survey 2024 “71% of investors agree that companies should incorporate ESG/sustainability directly into their corporate strategy."
3. AI and sustainability
From finding solutions to reducing carbon emissions through to reporting and analysis, advanced technologies and innovation have a crutial role to play in sustainability strategies. Artificial Intelligence (AI) and other technologies will increasingly be integrated in data-driven reporting and will enable airlines to improve data collection, enhance the accuracy of their ESG and sustainability metrics and their overall ability to meet the regulatory requirements mentioned above. Technology will also facilitate more detailed and real-time reporting, allowing travellers and other stakeholders to make better-informed decisions regarding sustainability.
4. Green Skills
Through the Fly Net Zero 2050 pledge and various other commitments, our industry has set ambitious goals to ensure that flying is sustainable and to achieve net-zero carbon emissions from all airline operations by 2050. This transition to a greener aviation will require new skills, both in the shape of new emerging occupations and changes in needs for existing occupations. Recognising the need for these new skills and investing in developing them now is essential to the success of our sustainable transition. They will indeed be required to develop new sustainable technologies, apply new practices in operations and logistics, understand and implement new green policies, anticipate risks linked to climate change, and manage resources etc. Now is a good time to invest in training programme in order to avoid facing a shortage in these essential Green Skills in the coming years.
5. Greenwashing and credibility
Accountability and transprency will remain a key parts of sustainability strategies in 2025. Increasing public concern about climate change and pressure from regulatory bodies will keep pushing airlines towards more authentic and transparent communication. In their 2024 report on Greenwashing, SimplyFlying recommend “transparent, credible, and contextualised sustainability communications backed by independent third-party verification” as a way to address pressure from public opinion, climate activists and regulators.
Conclusion
To conclude, we are convinced that the focus on ESG and sustainability will remain critical for our industry this year. Sustainability strategies will continue to evolve and and will be essential for airlines to remain relevant and resilient in 2025 and beyond. At Branchspace we believe that as a trusted technology partner for travel companies we have a role to play in supporting the industry’s efforts towards decarbonisations. There are many ways technology can support aviation’s global NetZero goals and this year more than ever, we are determined to help our customer and their users on their journey to more environmentally friendly travels.
Sources: https://www.forbes.com/sites/davidcarlin/2025/01/23/3-ways-sustainability-will-change-in-2025-are-you-ready/ https://www.pwc.co.uk/issues/esg/five-trends-shaping-sustainability-agenda-in-2025.html
PwC Net Zero Economy Index 2024 : https://www.pwc.co.uk/services/sustainability-climate-change/insights/net-zero-economy-index.html
