Harvard Law School Insights: Top 10 Corporate Sustainability Priorities for 2025
Overview
In 2025, corporate sustainability is evolving rapidly, shaped by shifting regulations, stakeholder expectations, and emerging global risks. From AI integration to biodiversity and water stewardship, companies are rethinking how ESG is embedded across their operations. A recent report from the Harvard Law School Forum on Corporate Governance highlights the top 10 corporate sustainability priorities for 2025.
Image by Emily Karakis on Unsplash
1. Policy Shifts
The top priority for 2025 is navigating the evolving U.S. policy landscape. Regulatory changes are reshaping how companies define, disclose, and defend their ESG strategies—especially under increasing legal scrutiny. Boards must now balance compliance with strategic clarity.
2. ESG Reporting
Mandatory ESG disclosures are growing globally, but the regulatory environment remains fragmented. Companies face the challenge of aligning with multiple frameworks while maintaining consistency and transparency in their reporting.
3. Return on Investment
Sustainability is no longer just a moral imperative—it must make business sense. Internal stakeholders are demanding clearer evidence of return on investment (ROI) from ESG initiatives, pushing companies to quantify impact and value creation.
4. Climate Strategy
Despite political headwinds, climate action remains a core focus. Companies are refining their climate disclosures, aligning capital allocation with climate risks, and integrating scenario analysis into long-term planning.
5. Supply Chain Transparency
With new due diligence laws and rising reputational risks, companies are digging deeper into their supply chains. Transparency, traceability, and ethical sourcing are now essential components of ESG risk management.
6. Water Stewardship
Water scarcity is becoming a critical operational risk. Companies are adopting localized water strategies and enhancing water-related disclosures to address growing concerns from investors and communities.
7. Biodiversity
Nature-related risks are gaining traction, but measurement remains complex. As biodiversity loss accelerates, companies are beginning to assess dependencies on natural ecosystems and explore new disclosure frameworks.
8. Business Integration
Embedding ESG into core business functions is still uneven but increasingly urgent. Leading firms are moving beyond siloed sustainability teams to integrate ESG into finance, operations, and product development.
9. Sustainability Storytelling
Effective ESG storytelling is emerging as a differentiator. Companies are using narratives to connect with diverse stakeholders, build trust, and communicate the broader impact of their sustainability efforts.
10. AI
AI is both a tool and a challenge for sustainability. While it can enhance ESG reporting, optimize energy use, and forecast climate risks, it also raises concerns about energy consumption, data ethics, and governance.
