ESG Monthly News Update: May 2025
ESG in Flux: Rising Expectations, Streamlined Reporting, and Innovation at the Edges
May 2025 brought a renewed sense of urgency—and complexity—to the ESG landscape. Across sectors, we saw stakeholder expectations intensify, efforts to simplify sustainability reporting take shape, and continued innovation in even the most emissions-heavy industries.
Public sentiment is shifting, and it’s not subtle. From climate change to DEI, people increasingly expect companies—and especially CEOs—to speak up and take meaningful positions on social and environmental issues. Silence is being recast not as neutrality, but as a risk. Leadership today requires not only performance, but presence and perspective on the issues shaping society.
Meanwhile, the sustainability reporting ecosystem continues to move toward greater integration and accountability. New efforts to streamline frameworks and reduce the reporting burden reflect growing demand for clear, comparable data that both regulators and investors can act on. While disclosure expectations grow more sophisticated, so too does the infrastructure supporting them.
In the financial sector, we’re watching institutions recalibrate their climate approaches—balancing political pressures, regulatory divergence, and real-world emissions reductions. “Transition finance” and “measurable impact” are gaining traction as new cornerstones of credible climate strategy.
Innovation, too, remains a bright spot. We’re seeing companies push ahead with bold partnerships and sustainable procurement strategies, particularly in hard-to-decarbonize industries. These moves suggest that even as the ESG space grows more complex, the appetite for climate solutions remains strong.
Altogether, May’s developments reflect an ESG environment that is both tightening and evolving. Companies face rising demands to act, explain, and innovate—with little room to remain on the sidelines.
At Summit Strategy Group, we help clients navigate this changing ESG landscape—building credible, resilient strategies that align with stakeholder priorities and regulatory trends. Let’s talk about how we can support your sustainability journey. Reach out today.
Contributor Spotlight: Brandon Suchan
Brandon Suchan is a Manager of ESG Consulting at Summit Strategy Group, where he helps clients navigate their sustainability journey by conducting greenhouse gas emissions inventories, developing ESG reports, and crafting strategic plans. With a background in data collection, analytics, and corporate sustainability, Brandon drives brand value through impactful storytelling and communication, leveraging both quantitative and qualitative insights.
Contact Brandon
What We Read in May 2025
Americans want CEOs to speak up, defend climate action
Trellis, May 8, 2025
A significant majority of Americans believe CEOs should actively speak out on climate change and diversity, equity, and inclusion (DEI) initiatives.
A March 2025 GlobeScan survey of over 1,000 U.S. adults revealed that 71% believe CEOs should speak out on climate change, and 67% support CEOs defending DEI initiatives. This support spans political affiliations and generations, with 56% of Republicans and 50% of Baby Boomers in favor of CEO advocacy on these issues.
Despite a polarized political climate, the public continues to expect business leaders to take a stand on critical social issues, emphasizing the importance of values-based leadership.
More global companies seek assurance on sustainability reporting, study by IFAC, AICPA & CIMA shows
International Federation of Accountants (IFAC), May 12, 2025
A study by IFAC, AICPA, and CIMA reveals that 98% of large global companies reported sustainability information in 2022, up from 91% in 2019. Additionally, 69% obtained assurance on at least some of their sustainability disclosures, marking an 18-percentage point increase since 2019.
The use of standalone sustainability reports has decreased, with only 30% of companies employing them in 2022—a 27 percentage point drop over three years. This trend indicates a shift toward integrating sustainability information into annual or integrated reports.
Despite progress, 87% of companies continue to use a mix of reporting standards and frameworks, leading to inconsistencies that hinder stakeholders' ability to access comparable and high-quality sustainability information.
CDP restructures, looks to reduce sustainability reporting burden
ESG Today, May 14, 2025
CDP announced a strategic restructuring aimed at reducing its workforce by approximately 20% to create a leaner, technology-driven organization focused on innovation and impact.
The organization unveiled an updated strategy emphasizing the reduction of reporting burdens, duplication of efforts, and manual data entry, aiming to provide sector-specific, actionable insights through a use-case model.
CDP plans to improve the provisioning and interoperable access of high-quality, standard-aligned data to financial markets, policymakers, and the public, reinforcing its commitment to delivering consistent, comparable data for informed decision-making.
Financial sector changes tack on climate goals as tide turns
Financial Times, May 22, 2025
Leading financial institutions, including HSBC, RBC, UBS, and Wells Fargo, are reducing their climate commitments. Actions range from revising climate strategies and abandoning sustainable financing targets to delaying or shelving net-zero goals.
The divergence between U.S. and European regulatory landscapes is impacting banks' climate strategies. While the U.S. sees a rollback in green finance support under President Trump, the EU is tightening sustainability rules and carbon pricing, creating a complex environment for global banks.
Activist shareholders are adjusting their strategies, moving from pushing for fossil fuel divestment to advocating for concrete renewable energy financing targets. This reflects a broader shift in focus towards proactive investment in sustainable initiatives.
Why Microsoft just signed a deal for green cement
Bloomberg, May 22, 2025
Microsoft has entered into a contract with Sublime Systems to purchase up to 622,500 metric tons of low-carbon cement over six to nine years, aiming to lower emissions from its data center construction.
The initiative targets the reduction of embodied carbon emissions associated with building materials, particularly cement, which is a major contributor to global CO₂ emissions.
This move aligns with Microsoft's broader sustainability objectives, including its commitment to becoming carbon negative by 2030, by integrating innovative materials into its infrastructure projects.
