Carbon Trends and CSR: What to Expect in 2025

Combating climate change is now a central issue for all economic players, driving companies to rethink their practices to reduce greenhouse gas emissions. Beyond being an environmental necessity, this transition represents a major economic opportunity: it enables innovation, enhances competitiveness, and meets the growing expectations of consumers and investors. The ecological transition continues to accelerate, and 2025 is shaping up to be a decisive turning point for companies committed to decarbonization and and the voluntary carbon market. This article outlines the key trends to watch and provides concrete guidance for companies looking to prepare effectively for these changes.

Towards Strengthened Regulation

International climate policies continue to tighten, with the European Union leading the way thanks to its ambition of achieving carbon neutrality by 2050. One of the flagship measures of this transition is the imminent expansion of the Emissions Trading System (ETS) to sectors previously uncovered, including buildings, road transport, and heating. This extension, part of the European Green Deal, compels companies in these sectors to deeply rethink their decarbonization strategies. By gradually internalizing the cost of emissions, the mechanism aims to accelerate the transformation of economic models toward more sustainable and less polluting solutions.

At the same time, the European directive on non-financial reporting (CSRD), Corporate Sustainability Reporting Directive) ushers in a new era of transparency and accountability for businesses. Under this regulation, organizations are now required to publish rigorous sustainability reports that comply with ESRS (European Sustainability Reporting Standards). These harmonized requirements seek to limit greenwashing practices while providing stakeholders, particularly investors, with comparable and reliable data on companies' climate and social performance. This initiative also aims to place environmental issues at the core of economic strategies, fostering a systemic transition.

Lastly, the introduction of the Carbon Border Adjustment Mechanism (CBAM) complements this regulatory framework. This innovative mechanism imposes a carbon tax on imports of high-emission products, such as steel, cement, and fertilizers, as a direct response to the risk of carbon leakage. By establishing fair competition between European companies subject to strict climate regulations and their international competitors, the CBAM acts as a strategic lever. Furthermore, by encouraging exporting countries to reduce the carbon intensity of their products, the mechanism promotes the adoption of sustainable industrial practices on a global scale. It underscores the European Union's pioneering role in global climate governance.

This regulatory triptych – the expansion of the ETS, the implementation of the CSRD, and the deployment of the CBAM – reflects Europe’s commitment to imposing ambitious standards to meet its climate objectives. These measures demonstrate the necessity of aligning national policies, cross-border regulations, and international efforts to address the climate emergency effectively.

In addition to European regulations, the Science Based Targets initiative (SBTi) plans to revise its Corporate Net-Zero Standard in 2025 to accelerate the transition toward the net-zero emissions goal. This evolution represents a major strategic challenge for companies: those that delay setting clear targets while waiting for the updated guidelines risk falling behind, while those that have already set emission reduction targets (SBTs) and established a solid climate transition plan will be better prepared to meet the new requirements. This revision is expected to strengthen the evaluation of commitments and action plans, thus raising expectations regarding preparation and adaptability to climate challenges.

At the same time, ISO is working on a new Net-Zero standard, which is set to launch at COP 30. Developed in collaboration with businesses, researchers, and environmental organizations such as the GHG Protocol and SBTi, this standard focuses on the circular economy and emission reduction strategies while imposing strict criteria regarding the use of carbon offsetting. In 2025, a public consultation will be opened to allow organizations from all sectors and sizes to review and adjust the requirements set by the standard.

The Rise of Carbon Credits: Projects Aligned with Sectoral Challenges Within and Beyond the Value Chain

Local carbon credits represent units corresponding to one ton of CO₂ avoided or sequestered through projects conducted in a specific geographic area, often at a national or regional level. These initiatives enable companies and local authorities to offset their emissions by financing actions close to their place of activity, thereby strengthening the positive impact on local communities. For instance, in France, the Label Bas-Carbone certifies national projects, promoting a geographic proximity approach and integrating into a territorial strategy. This approach also facilitates the traceability of credits and ensures greater transparency of the actions undertaken. However, it is important to note that local carbon credits can be more expensive than international credits. According to an analysis by ReSoil, the average price of a credit issued under the Label Bas-Carbone is at least five times higher than that of its international competitors due to higher implementation and certification costs in France.

At the same time, companies are increasingly seeking to align their carbon credit purchases with their sector of activity without necessarily resorting to insetting, which involves projects directly integrated into their own value chain. This approach involves financing carbon offset projects relevant to their sector, even if they are external to their direct value chain. For example, a company in the agri-food sector might choose to fund reforestation projects or sustainable agricultural practices, thereby contributing to emissions reduction in its field of activity. This strategy allows companies to support initiatives consistent with their specific environmental impact while diversifying their offset actions. According to the Institute for Climate Economics (I4CE), this approach reflects a trend in which companies favor offset projects aligned with their sector, thereby enhancing the credibility and effectiveness of their climate commitments.

In conclusion, the rise of local carbon credits and sector-specific initiatives tailored to companies' areas of activity demonstrates an increased commitment to engaging in offset actions that are more transparent, traceable, and aligned with their specific environmental impact. However, it is crucial to consider the economic implications of these choices, particularly the potentially higher costs of local credits, to ensure an effective and sustainable carbon offset strategy.

Involving stakeholders in its sustainable strategy

To successfully transition to a sustainable strategy, companies will need to intensify their dialogue with stakeholders, including investors, customers, suppliers, and employees. In 2025, stakeholder engagement will become a key element of CSR, ensuring the consistency of the actions implemented and strengthening the credibility of companies.

In this context, the concept of double materiality plays a central role. It requires companies to consider both the impact of their activities on the environment and society (environmental and social materiality) and the influence of these issues on their own economic and financial performance (financial materiality). This dual perspective allows for a more comprehensive approach, where stakeholder expectations and systemic risks are integrated into strategic decisions.

Thus, to strengthen this engagement, companies could create advisory committees composed of representatives from key stakeholders to assess the impacts of their activities and identify opportunities for improvement. Similarly, organizing collaborative workshops would allow for gathering diverse perspectives and setting priorities aligned with double materiality. This proactive approach would help enhance transparency and avoid greenwashing, while building trust with stakeholders.

What questions should we be asking today to remain CSR leaders in 2025?

Companies that wish to remain leaders in Corporate Social Responsibility (CSR) in 2025 must anticipate ongoing regulatory and societal changes. To effectively prepare for these challenges, it is essential to ask a series of strategic and methodological questions to align sustainability practices with the imperatives of economic and environmental performance. These questions should help structure an integrated and proactive approach to the ecological transition

Identifying the main emission sources and climate risks

Before even determining how to reduce emissions, a thorough analysis of the company’s major emission sources is essential. This step involves mapping and quantifying direct and indirect sources of CO₂ and other greenhouse gas emissions across the entire value chain. According to the Greenhouse Gas (GHG) Protocol, this assessment should cover Scope 1 (direct) emissions, Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions from supply chain activities and finished products) (WRI & WBCSD, 2004). Once these sources are identified, it is also crucial to integrate climate risks into the strategic thinking. These risks, whether physical (disruptions related to extreme weather events) or transitional (related to regulatory changes and markets), can significantly affect the company’s long-term resilience and performance (TCFD, 2017). Mapping climate risks will thus help make informed decisions about adaptation and mitigation strategies.

Access to the data needed to calculate the carbon footprint

Another fundamental element lies in access to the data necessary for a complete assessment of the company’s carbon footprint. It is essential to determine where this data is available and how it can be collected, consolidated, and analyzed. This step is crucial to ensure compliance with new transparency and reporting requirements, particularly those outlined by the Corporate Sustainability Reporting Directive (CSRD). According to the CSRD, companies will need to report their environmental impacts according to the ESRS (European Sustainability Reporting Standards), which require a high level of detail and rigor in tracking carbon emissions. Thus, implementing a robust environmental data management system capable of tracking and verifying emissions at each stage of the product and service lifecycle becomes imperative (European Commission, 2022).

Reflection on internal skills and the integration of CSR into global strategy

Reducing emissions and investing in credible carbon projects

Once these fundamental questions have been addressed, it is important to consider the most appropriate strategy for reducing emissions at the source. This could include adopting less polluting technologies, improving energy efficiency in industrial processes, or transforming supply chains to make them more sustainable. Companies will also need to consider how to invest effectively in credible and certified carbon projects. The certification of carbon credits and their traceability are crucial elements to avoid greenwashing and ensure that the investments made result in real emissions reductions (ICROA, 2021).

Avoid greenwashing and guarantee transparency

Finally, in the face of rising societal and regulatory expectations, companies must ensure they avoid greenwashing, meaning misleading communication about their climate actions. Transparency and authenticity in climate actions are crucial for maintaining the company's credibility. Adhering to international reporting standards and conducting external audits helps ensure the accuracy of commitments and reassures stakeholders about the company's genuine contribution to combating climate change.

Conclusion

The year 2025 marks a pivotal moment in the fight against climate change. Companies that can anticipate these developments, adapt to new regulations, and invest in innovative solutions will play a crucial role in building a sustainable future.

In conclusion, to remain a leader in CSR in 2025, companies must ask the right questions today, both strategically and methodologically, to prepare for the emerging climate and compliance challenges. The integration of double materiality, the precise identification of emissions and climate risks, as well as the incorporation of CSR skills into the overall strategy, will be key factors for a successful and sustainable transition.

Don't hesitate to contact us to set up your CSR strategy.

Sources :

• • European Commission – Fit for 55
  • Directive CSRD – FAQ
  • Global Impact Investing Network (GIIN)
  • Rapport de la Banque Mondiale sur l’accès à l’énergie

• UN Global Compact – Stakeholder Engagement
• World Economic Forum – The Role of Digital in Sustainability
• https://www.cerema.fr/fr/actualites/fonds-carbone-locaux-compensation-carbone-territoriale?
• World Resources Institute & World Business Council for Sustainable Development (2004). The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard.
• Task Force on Climate-related Financial Disclosures (TCFD, 2017). Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures.
• European Commission (2022). Corporate Sustainability Reporting Directive (CSRD).
• International Carbon Reduction and Offset Alliance (ICROA, 2021). Best Practice Principles for Carbon Management and Offsetting.
• Sullivan, R. & Mackenzie, C. (2020). The Business Guide to Sustainability: Practical Strategies and Tools for Organizations
• https://www.resoilag.com/blog/comparaison-des-principaux-cadres-de-certification-de-credits-carbone
• I4CE