6 Game-Changing Sustainability and ESG Trends for Businesses in 2025
2025 is set to be a transformative year for ESG and sustainability, with trends like sustainable business practices and innovation reshaping industries. As companies race to meet 2030 sustainability goals, regulatory pressures, climate change, and the rise of AI drive ESG trends focused on transparency and accountability. Businesses must adapt to these challenges while prioritizing sustainability to stay competitive.
Discover the 6 top trends to watch in 2025 that will redefine corporate strategies and pave the way for a more sustainable future with SCGC.
------------------------------------------------------------------------------------
#1 ENERGEY TRANSITION – ACCELERATED!
The energy landscape in 2025 will be shaped by dynamic shifts as countries and corporations accelerate the transition to renewable energy, driven by the pursuit of net-zero emissions. Among the top trends to watch in 2025 are advancements in clean technologies like solar, wind, and green hydrogen, which promise both environmental benefits and economic opportunities. However, geopolitical uncertainties and uneven progress in hard-to-abate sectors pose challenges to sustainable business practices. As ESG trends evolve, innovation will play a critical role in balancing energy security, affordability, and sustainability. The year ahead will redefine global strategies for a low-carbon future.
ASEAN's leading integrated innovation company in polymers and advanced solutions, SCGC is dedicated to adopting clean energy solutions, cutting Scope 1 and Scope 2 greenhouse gas emissions, and reducing energy costs consistently over the past six years. This transition includes our innovative SCGC Floating Solar Solutions, enabling Thailand's first floating solar farm with durable, eco-friendly, and easy-to-install platforms for solar cells. Collaborating with Braskem, a global leader in bioplastics from Brazil, SCGC is planning to produce “Bio-Polyethylene,” which replaces fossil-based raw materials with bio-based feedstock, resulting in negative carbon emissions.
#2 THE INEVITABLE CIRCULAR ECONOMY
The Circular Economy is a continuously noteworthy trend as it revolutionizes sustainable business approaches by shifting from a waste-generating model to a system that minimizes waste and maximizes resource utilization. Key ESG-related trends in this area include the Product as a Service (PaaS) business model, which replaces traditional product sales with service-based offerings. In this model, manufacturers retain ownership and responsibility for maintenance and end-of-life management of their products. The Sharing Economy, a subset of the Circular Economy, also plays a significant role. Examples include car-sharing services that reduce the need for new car production and clothing rental services that minimize waste from the fashion industry. Other impactful practices include second-hand markets and Industrial Symbiosis, where industries share resources and by-products, significantly transforming the industrial landscape. These changes not only promote sustainability but also enhance profitability by reducing reliance on virgin materials and creating new revenue streams through efficient resource utilization. The Circular Economy thus represents a powerful shift toward a more sustainable and economically viable future.
With the context of circular economy, a closed-loop program is a basis system where our finite natural resources are continuously recycled back into the manufacturing process, rather than discarding them after use. SCGC has implemented the take-back and recycling initiatives with several partners since 2022. In collaboration with the Ellen MacArthur Foundation and ten leading companies such as Microsoft and BASF, SCGC investigated the potential for recycling pallet stretch wrap back into its original form. This initiative aimed to develop ambitious circular solutions for a closed-loop recycling model, optimizing material use at the end of its life cycle. We enhanced our circularity initiatives in partnership with Global House by converting used plastics from their retail stores and distribution centers into eco-friendly plastic bags, utilizing SCGC's High-Quality PCR from SCGC GREEN POLYMER™.
In March 2024, SCGC signed an MoU with HomePro to launch Thailand's first "Closed-Loop Circular Appliances" initiative, using recycled electrical appliances to protect the environment. While Circular Plastics, a Dutch subsidiary of SCGC based in the Netherlands, is leading the charge in sustainable business by offering innovative transportation and packaging solutions made from 100% recycled plastics within a closed-loop system. As a key player in the Circular Plastics Alliance, the company collaborates with partners to drive ESG trends through projects focused on design, recycling, and sustainable reuse, all aligned with sustainability principles.
#3 INDUSTRIAL DECARBONIZATION AND CARBON MARKET
Decarbonizing supply chains and advancing carbon markets are key trends to watch in 2025 as businesses prioritize sustainability and emissions reduction ahead of 2030 targets. Addressing Scope 3 emissions will take center stage, with companies leveraging innovation like blockchain to enhance transparency and accountability across value chains. Meanwhile, global carbon markets are gaining momentum, driven by agreements on Article 6 of the Paris Agreement and the expansion of compliance systems like the EU’s Emissions Trading System (ETS). ESG trends will focus on integrating high-quality carbon credits and fostering voluntary carbon markets, which are set to grow with improved integrity standards. Developing nations like Brazil, India, and Mexico are also designing carbon markets to mobilize climate finance, creating opportunities for sustainable business practices worldwide. In this evolving landscape, businesses that embrace innovative solutions and prioritize carbon reduction will lead the way toward a more sustainable future.
The trends to watch in 2025, focusing on sustainability will include groundbreaking advancements in Carbon Capture, Utilization, and Storage (CCUS) technologies, which reshape sustainable business practices. SCGC is pioneering ESG trends by collaborating with global partners to drive carbon-neutral innovations. Initiatives like the PYROCO2 project aim to convert carbon dioxide into raw materials for plastic production, reducing reliance on traditional resources. Partnerships with IHI focus on capturing emissions from production processes to replace naphtha, further advancing carbon reduction goals. Additionally, SCGC’s collaboration with Avantium N.V. is revolutionizing sustainability through the creation of carbon-negative polymers like PLGA, which are biodegradable and recyclable—even in marine environments. These innovations not only tackle carbon emissions but also align with circular economy principles.
We are enhancing our emissions reduction efforts by investing in Natural Climate Solutions (NCS) to absorb and store greenhouse gases. SCGC's "Plant-Cultivate-Protect" campaign, active since 2018, combats global warming by expanding green spaces in Rayong Province. In partnership with various sectors and over 9,000 volunteers, the initiative has planted 368,729 mangrove and terrestrial trees while ensuring their ongoing care (Data as of 2018). We, in collaboration with the Department of Marine and Coastal Resources, lead the "Mangrove Reforestation Project for Carbon Credit Benefits," restoring degraded forests and expanding mangroves to boost carbon sequestration. With over 500,000 saplings planted and cared for, the project not only mitigates climate change but also supports the local economy by employing community members. As Thailand's first petrochemical company with a Premium T-VER certification, SCGC exemplifies sustainable business and innovation in achieving measurable environmental and social benefits.
#4 WATER STEWARDSHIP
In 2025, trends to watch include a heightened focus on water security as a cornerstone of sustainable business practices. With climate change exacerbating floods and droughts, the economic and societal impacts underscore the urgency of innovative solutions. ESG trends will emphasize water stewardship, with industries like agriculture adopting technologies such as closed-loop systems to ensure efficient use and recycling. The market for water-utility-monitoring software is set to grow, driven by demand for real-time data to manage quality and reduce waste. As sustainability becomes paramount, investing in water security represents both a necessity and an opportunity for innovation.
Through Khao Yai Da Community Water Management Project, a partnership between SCGC and Rayong Province communities, promotes sustainable water management through reforestation, check dam construction, and community-led practices, restoring degraded forests and securing a reliable water supply. The Khao Yaida area according to a 2021 environmental survey now supports over 14 million cubic meters of annual water flow, has reduced temperatures by 1.6°C, and sequesters more than 38.5 tons of CO2 per rai. Local farmers benefit with 79 million kilograms of annual agricultural produce.
#5 NATURE PROTECTION
Protecting biodiversity will emerge in 2025 as one of the key trends to watch, as businesses integrate nature conservation into their sustainable business strategies. With biodiversity loss accelerating, companies are aligning their goals with global frameworks like the Kunming-Montreal Global Biodiversity Framework or GBF, which sets targets to reverse nature loss by 2030. ESG trends will emphasize the sustainable management of natural capital, with businesses adopting nature-based solutions, restoring ecosystems, and promoting sustainable land use practices to mitigate environmental risks. Financial instruments such as blue bonds and biodiversity-focused ETFs are gaining traction, channeling investments into conservation efforts. Additionally, standard-setters like the ISSB are developing biodiversity-related disclosure frameworks to help companies manage and report nature-related risks. This growing focus on sustainability and innovation highlights the critical link between biodiversity and climate resilience, encouraging businesses and investors to prioritize “nature-positive” solutions for a sustainable and thriving future.
The SCGC’s Khao Yai Da Community Water Management Project identified over 120 plant and 123 animal species, including the return of wildlife like the Asiatic black bear, according to a 2012 Kasetsart University study. These efforts have enhanced biodiversity, improved livelihoods, and boosted the local quality of life.
#6 AI-POWERED SUSTAINABILITY
In 2025, the integration of artificial intelligence (AI) and big data will redefine trends to watch in sustainability, driving transformative changes across industries. AI-powered tools like predictive analytics and digital twins will enable sustainable business practices by optimizing resource use, enhancing energy efficiency, and modeling environmental risks. These technologies will allow sectors such as agriculture, energy, and manufacturing to make data-driven decisions that minimize waste and improve environmental outcomes. Moreover, AI will revolutionize ESG trends by automating data collection, improving the accuracy of sustainability metrics, and enabling real-time reporting to meet regulatory requirements.
However, balancing AI’s utility as a climate tool against its energy consumption will become increasingly urgent. With datacenter energy use rising, developers will seek renewable energy solutions, including nuclear power and small modular reactors, to mitigate emissions. While AI’s potential in decarbonization remains promising, evidence of its measurable benefits is still emerging. As industries adopt AI-driven innovation in 2025, the focus will be on maximizing its sustainability benefits while addressing its environmental footprint. By leveraging AI responsibly, businesses can advance their climate goals, accelerate decarbonization, and contribute to a more sustainable future.
SCGC integrates AI and digital technology across all business processes to propel ongoing development. DRS by REPCO NEX, the world’s first comprehensive digital smart solution service for the industrial sector and a leading business under SCGC, offers three key solutions: 1. Comprehensive Smart Maintenance with Digital Innovations 2. Digital Transformation 3. Digital Platforms for Renewable Energy Management. These advancements highlight SCGC’s commitment to driving innovation and sustainability in the industrial sector.
As 2025 unfolds, the importance of ESG and sustainability continues to grow, becoming critical focal points for businesses. Companies face mounting pressures from regulatory demands, climate challenges, and the rapid integration of AI into operations. These factors are driving trends that emphasize transparency and accountability. With industries competing to achieve sustainability targets by 2030, adopting sustainable practices and accelerating innovation has become essential for maintaining competitiveness. SCGC stands at the forefront of this transformation, committed to developing eco-friendly solutions and implementing impactful projects aligned with emerging sustainability trends. By prioritizing innovation alongside environmental stewardship, SCGC continues to lead efforts in addressing global challenges while paving the way for a more sustainable and balanced future.
---------------------------
References:
