With 2025 just a matter of weeks away and the need for climate action growing stronger, the University of Salford’s sustainability expert, Dr Silvia Tedesco, has predicted some expected trends we’re likely to see take shape next year.
Recent data from The Round Up revealed more than three-quarters (78%) of consumers feel sustainability is an important factor when shopping while, according to YouGov, 21% of Britons are willing to invest more in products that favour sustainability. To add to this, recent research from TotalJobs has highlighted, three in five (62%) HR decision makers have seen an increase in questions about environmental sustainability from candidates during the interview process.
With the fight against climate change and reducing environmental footprint an increasing priority for consumers and, in turn, businesses, here are five predictions Silvia has for the next 12 months and beyond, as we continue progressing on the road to net zero…
Circular economy models to play a bigger role in operational strategies
We’ll see circular economy models play a bigger role in operational strategies, with greater opportunities to reuse, repair, recycle and refurbish existing products and materials for the greater good of the environment. This will completely revolutionise waste management, in turn reducing carbon footprint.
We’re already seeing large organisations adopt this strategy. For instance, McDonalds, which repurposes waste cooking oil to turn it into biodiesel to fuel over half of its delivery fleet, as well as large retailers, such as H&M, calling for the textile sector to embrace circular economy principles to reduce the industry’s environmental impact.
A bigger focus on green finance integration into ESG strategies
2024 was a record year for sustainable finance volumes as, according to the Climate Bonds Initiative, the first quarter of this year was the most prolific on record, highlighting growing investment in climate change solutions.
Green finance and investing with an environmental lens on will play a bigger role in company ESG (environmental, social and governance) strategies. As businesses prioritise reducing environmental risk on the financing of projects, we’ll also see a bigger focus on environmental due diligence and reducing carbon footprint when it comes to transactions, accounting and investments.
Net zero supply chains will become a bigger priority
We’ll see leaders put a bigger onus on net zero supply chains, elevating greener operations beyond company level. We’re likely to see more and more organisations enforce sustainable supply chains and make critical decisions around whether or not they work with another supplier as they continue their net zero journeys. While this may not necessarily translate into all organisations refusing to work with suppliers, amongst those who do respect sustainable supply chain policies, there will be greater opportunities to collaborate and co-create sustainable advantage to ultimately retain, in some instances even increase, their market share. We’ve seen companies like Marks and Spencer pave the way in this area, with the introduction of its Plan A: Our Planet initiative, which centres on helping the retailer to become a net zero business across all of its operations and its entire value chain by 2039/40.
Holding brands accountable for their eco credentials will become a bigger priority for consumers as we head into the new year. Data from NielsonIQ has highlighted the vast majority (77%) of consumers will quit brands who are guilty of greenwashing and we’ll continue to see customers hold the brands they shop with accountable if they’re found to be misleading them on the environmental impact of their products.
Consumers are increasingly interested in the entire carbon footprint of products and it’s becoming a bigger factor in purchasing decisions, forcing organisations to take their green credentials more seriously if they want to strengthen their customer retention. We’re also seeing B Corp awareness grow year-on-year, with younger consumers acknowledging it impacts their purchasing decisions.
Further transition to sustainable energy and decentralisation from the national grid
According to data from Uswitch, more than half of consumers they surveyed in 2023 were willing to pay more for a house with renewable or low-carbon energy sources like solar panels, heat pumps or EV chargers.
Next year, we’ll see more consumers make the switch to suppliers that have a bigger focus on supplying from and investing in clean energy sources, such as wind, solar and hydroelectric, including tidal energy.
In tandem with this we’ll also see a growing number of consumers decentralise their energy as they strive to become more energy independent and aim to store their own energy to reduce costs in the long-term, while increasing energy security. As the way we use energy evolves, decentralised energy can help consumers make their own carbon reductions on site, by reducing the use of fossil fuels and driving eco-efficiency as the shift to renewable sources strengthens.
Increasing investment in biodiversity and nature-based solutions
Consumers are becoming increasingly aware of how their behaviours impact biodiversity and nature, and we’re seeing a growing number rectify that through their purchasing decisions, as well as their personal endeavours. For instance, we’re seeing a growing number of community litter pickers to help protect animal habitats, as well as a drive to protect hedgehog habitats, after a decline living in rural areas resulted in the species being categorised as ‘near threatened’ and being pushed towards extinction. We are however seeing many people keen to play a role in reversing this worrying trend. In addition, we’ve seen several farming and agricultural projects receive funding recently which are expected to lead to positive change in the conservation, restoration and wise use of biodiversity.
We’re also seeing a huge shift away from single-use plastic, which is incredibly harmful to animal habitats, biodiversity and ecosystems, with 85% of people surveyed by Ipsos and WWF (World Wildlife Fund) earlier this year, calling for a global ban on single-use plastic. As a result of its impact on the environment, reducing waste in all forms, including packaging, food and other consumers products, will become a bigger priority, as living more sustainable lifestyles takes precedence.
The knock-on effect of consumers becoming increasingly eco-conscious will also see businesses being more involved in preserving biodiversity through initiatives such as offsetting carbon, tree planting, and being more considerate of animal habitats around premises.
