How will the geopolitical environment impact corporate sustainability in 2025?

This week we have seen conflicting reports about how the global geopolitical landscape may impact corporate and investor climate action in 2025.

Earlier this week, The Australian Financial Review reported Australian Super funds will use new mandatory climate disclosure requirements to “bolster their push for companies to keep acting to prevent climate change” here in Australia.

However The Australian Financial Review also reports the Net Zero Asset Managers Initiative, a group of 300 asset managers and investors, has announced it will suspend its activities, review its structure and no longer disclose its membership list, citing the election of Donald Trump and “different regulatory and client expectations”.

So will a Trump Presidency and the spectre of the US pulling out of the Paris Agreement be the death knell for investor climate activism and corporate climate action here in Australia and around the world?

In our view, sustainability is and will remain a business imperative. A Trump Presidency nor the US withdrawing from the Paris Agreement will alter the economic case for business adopting smart sustainability-focused measures such as cleaner and cheaper renewable energy and transport solutions. The acceleration and deployment of new climate technology solutions that reduce costs and emissions will continue to make economic sense and could largely be immune to changes in the geopolitical landscape. While investors will also continue to analyse exposure to climate risks when making investment decisions.

Most people around the world will also continue demanding climate action from their governments and business leaders. For example, the UN Development Program’s 2024 Peoples’ Climate Vote survey of 75,000 people from around the world showed 80% want their governments to do more on climate. The survey also found just 39% think businesses are doing well in addressing climate change.

From a communications perspective, changes in the geopolitical landscape may also see an evolution in communication approaches. We may see a shift towards more nuanced, audience-specific and direct communication that targets key changemakers, influencers and audiences within the corporate, investor and regulatory environment.

Importantly however, true sustainability leaders cannot and should not pull back. Strong communication about the urgency of the climate crisis and the benefits of climate action and more sustainable practices is needed now more than ever.

For corporates here in Australia, mandatory climate disclosure requirements presents an important climate and sustainability storytelling opportunity. Investors, staff and climate-conscious customers will want to understand the stories behind the climate data. Polling also shows the majority of Australians still view global warming as a “serious and pressing problem” that needs to be addressed now.

How can we meaningfully advance and scale climate action? Why does it make commercial sense to invest in clean energy? Why does energy efficiency make business sense? What impact does climate action have on business profitability and product/service costs? How do these climate measures help create better products or services for consumers? What role can employees play in helping their organisation reduce emissions and become more profitable?

These are all questions that can be answered via strategic, audience-specific storytelling in 2025 that has the dual benefit of enhancing an organisation’s reputation among key and influential audiences.

While some may forecast the demise of corporate and investor climate action in 2025, the fundamental shift to net zero will continue, no matter who is in office around the world. As the devastating fires in Los Angeles show, the impacts of climate change are real and growing – and demand action. Proactive, smart, audience and action focused sustainability communication strategies will be more important than ever, particularly as misinformation and disinformation become more prevalent in our social and news ecosystem.