Corporate Sustainability Trends 2025

By Federal International Marketing
January 24, 2025

As governments set climate, biodiversity, and emissions targets, aligning business operations with Environmental, Social, and Governance (ESG) principles is critical. Consumers are increasingly seeking sustainable business solutions, with studies showing 70% of consumers prefer to purchase from companies with environmentally responsible practices.

Beyond customer expectations, evolving laws and legislation also compel businesses to adopt sustainable practices and comply with new reporting standards.

Regulatory Pushes for Sustainability

  • Extended Producer Responsibility (EPR) legislation promotes waste reduction and circular economy practices by holding producers accountable for their products’ lifecycle, from production to disposal. Companies benefit from financial incentives, such as lower eco-modulated fees and tax credits. EPR also encourages sustainable product design by using take-back programs to collect products for reuse at the end of their lifecycle.
  • The Corporate Sustainability Reporting Directive (CSRD) mandates over 50,000 EU-based companies to report on 1,000+ sustainability metrics covering climate impact, resource usage, employee practices, and governance by 2025 to reduce environmental impact. As part of the European Green Deal, this directive enhances transparency, but also requires significant upgrades to data collection, reporting, and disclosure systems.
  • The Ecodesign for Sustainable Products Regulation (ESPR) supports the circular economy goal by requiring the use of sustainable materials to design products for easier reuse and recycling, further driving sustainability and the circular economy goal. Additionally, the ESPR emphasizes product longevity, urging manufacturers to create resilient products to reduce the need for frequent replacements.

These evolving requirements set the stage for businesses to not only meet regulatory expectations but to lead the charge in sustainable practices to reduce their carbon footprint through responsible consumption and production.

5 Key Corporate Sustainability Trends for 2025

As the sustainability landscape continues to shift year after year, several key trends emerging in corporate sustainability in 2025 will shape how businesses approach sustainability.

Trend #1: Rising Consumer Expectations for Sustainability

As environmental awareness grows, consumers continue to prioritize sustainable products and services. According to a study by McKinsey, 60% of customers are willing to pay a premium for products with sustainable attributes. This shift in consumer preferences has prompted companies to integrate sustainability into their business operations, product development and marketing strategies to remain competitive and relevant in the marketplace. 

For example, Belgian furniture brand Ecobirdy was founded on a shared vision to create solutions for environmental problems, in this case their plastic waste. The company created ecothylene, a recycled and recyclable plastic material, to manufacture sustainable and ergonomic furniture, and the business has received numerous accolades for innovative design and B Corp status since 2019. 

Trend #2: Circular Economy Gains Momentum

A circular economy seeks to eliminate waste by creating processes where materials are continuously reused for further use in production. Circular economy benefits include waste reduction, resource conservation and emission reduction. Circular economy practices encourage businesses to design environmentally friendly products, reduce their carbon footprint, and invest in technologies and materials that extend product lifecycles and enhance recyclability.

An example of a business committed to circular economy practices is John Deere with their commitment to incorporating 95% recyclable content into products and, of that 95%, ensuring 65% of it is sustainable, while growing remanufacturing revenue by 50%. Another example of a business implementing circular economy practices is Tomra Systems, a leader in the sensor-based sorting and recycling industry, and their Reverse Vending Machine (RVM) program that automatically sorts, counts, and processes beverage containers to be recycled or reused.

Federal International’s family of business units are actively involved in every aspect of the circular economy, and we look for ways to do more through new products and services, reducing our own environmental footprint with process improvements related to Scope 1, 2, and3 emissions, product lifecycle analyses, and intercompany collaboration.

Federal Eco Foam

Federal Eco Foam creates recycled rebond foam from polyurethane materials in mattresses, furniture, and seats, supporting open-loop recycling by producing products for use in other industries and closed-loop recycling by returning processed scrap materials to manufacturers for reuse.

Federal Recycling

Federal Recycling recycles byproducts such as cardboard, paper, plastic, metals or pallets, providing customized circular economy solutions to fit any business needs.

Federal Foam Technologies

Federal Foam Technologies sources sustainable materials for customers when specifications allow and provides its foam byproducts to other companies for reuse in production.

Trend #3: Demand for Transparent and Ethical Sourcing

Companies adhering to ethical sourcing standards not only build trust with their customers but also strengthen their reputation and decrease the chance of legal risks by ensuring they comply with local and federal laws. Components for ethical sourcing include sustainable procurement, fair labor practices, and transparency.

Companies can enhance transparency in their ethical sourcing practices by conducting a supply chain audit, establishing sourcing policies and guidelines, and regularly monitoring and evaluating supplier performance.

Trend #4: Increased Focus On Reducing Carbon Footprint

Corporations reducing carbon footprint is pivotal, as they influence emissions through their production processes, supply chains, and product designs.

Several key strategies have been identified to reduce carbon footprints, including:

Raw Material Sourcing

Raw material sourcing, fundamental to the production of goods, plays a significant role in greenhouse gas emissions. The EU reported non-energy and non-agricultural raw materials contributed to 18% of consumption-based emissions. Ways to improve raw material sourcing procedures include incorporating life cycle assessments, promoting energy efficient practices, and using secondary raw materials.

Repurposing Byproducts

The practice of recycling byproducts—secondary products generated during production—back into the manufacturing process reduces the need to create new raw materials for production.

Sustainable Supply Chains

Sustainable supply chains involve integrating social, environmental, and financial factors into sourcing goods with the goal of maintaining efficiency while mitigating environmental impacts. By addressing Scope 3 emissions—indirect emissions from the value chain—these practices can significantly reduce a company’s overall carbon footprint, lower direct emissions, and enhance its reputation.

Trend #5. Advancements in Waste Management Technology

Several innovative recycling trends are emerging in waste management technology that focus on extending the lifecycle of materials and reducing resource consumption. 

The future holds significant potential for sustainable innovation and technology like IoT, Artificial Intelligence (AI) and Recycling Robots. For example, recycling bins with built-in sensors can monitor fill levels and notify collectors when they are at capacity and need to be emptied. AI and Recycling Robots can assist with more efficient and accurate material analysis and sorting, increasing worker safety by reducing exposure to hazardous materials and decreasing contamination rates in mechanical recycling.

Make Your 2025 More Sustainable

The corporate sustainability landscape is rapidly evolving, driven by increasing consumer demand for sustainable products, regulatory requirements, and advancements in technology. Companies are now prioritizing circular economy practices, reducing carbon footprints, and ensuring transparency in their sourcing and production processes to stay competitive.

As these trends continue to shape the future, businesses that embrace sustainability not only can improve their operational efficiency but also can build stronger connections with their customers.

Interested in learning how you can make your business become more sustainable in 2025? Federal International can help. Contact us today for assistance in navigating these changes.