ESG (Environmental, Social, and Governance) factors continue to grow significantly across various sectors, particularly in the financial landscape. As 2025 draws near, ESG considerations and practices will remain vital in driving business strategies and investment decisions.  

Bolder Group’s ESG Specialist Ana Prada outlines and provides critical insights on key trends, significant regulatory developments, major challenges companies might face with ESG in 2025 and what they can do to prepare.   

What are the key ESG trends to watch in 2025? 

Ana: “There are new obligations that will apply in the EU that will have a global impact on these issues, especially as they will also apply to foreign companies operating in the EU.”

What are the significant regulatory developments in ESG for 2025? 

Ana: “The first exercise of European companies under the CSRD (Corporate sustainability reporting – European Commission), where it is mandatory to implement double materiality. Double materiality is a reporting requirement in the EU’s CSRD. It refers to how ESG issues can have a significant impact on an organisation’s operations and how an organisation’s actions can materially affect ESG issues. On the other hand, the EU has approved the CDDD (Corporate sustainability due diligence – European Commission), which will bring significant internal changes for companies in terms of all the requirements. This is not only for companies registered in Europe but also for foreign companies operating in Europe. Countries like Germany and France already had these standards, but now these requirements are being extended.” 

What are the key challenges companies might face with ESG in 2025, and how can they address these challenges?  

Ana: “There is no doubt that these directives pose significant challenges for companies. It remains to be seen how countries will implement both directives, but many EU countries are already well-advanced. The big challenge is dual materiality; from there, companies will have to report on their risks and opportunities. For the CSDDD, there are big challenges ahead as companies need to know how their value chain works and be able to identify and mitigate climate and human rights risks. In both cases, it will be necessary to develop internal and external expertise to help meet the obligations and manage communication with regulators of these obligations.”  

How can companies prepare for mandatory ESG reporting and ESG data management in 2025?  

Ana: “In any case, they should review both the directives and the legislative developments regarding these ESG aspects in the countries where they operate. It is also important to make progress in analysing their double materiality and identifying the risks and opportunities of their business as well as the internal systems to manage these risks. Specialists must communicate with the authorities, as in the case of the CSDDD, which requires the appointment of a compliance officer for these aspects.” 

How can companies plan ahead with the ESG trends and regulatory developments for 2025? 

Ana: “It is imperative that companies must familiarise themselves with these directives and new obligations as soon as possible, even if they are not applicable for the 2025 financial year.” 

How we can help

With the new ESG regulatory developments and challenges that lie ahead in 2025, organisations must constantly adapt to a changing regulatory landscape to address the rising expectations of investors and consumers and emerging regulatory obligations.  

Bolder Group has a team of experts that keeps our clients on top of the ever-changing ESG landscape. We remain committed to assisting you in navigating key ESG trends and changes through our bespoke governance solutions to ensure full compliance with ESG regulations and the overall success of your business. Contact our team to learn more about our services.  

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.