ESG Monthly News update: April 2025
ESG Changes in April 2025: Nature Standards, Scope 3 Pressure, and the Rise of Clean Tech
April has ushered in major ESG shifts that are redefining corporate sustainability strategies—from expanding disclosure standards to rising pressure on decarbonization and clean energy adoption.
Among the most significant updates, the IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have formally partnered to streamline climate and nature-related reporting. This marks a major step toward integrated sustainability standards and elevates nature risks and biodiversity into the boardroom conversation—encouraging companies to align their climate strategies with broader environmental impacts.
Meanwhile, Scope 3 emissions remain a sticking point. New research from VCMI highlights persistent barriers to progress, including poor supplier data, internal alignment issues, and cost constraints. With regulatory and investor scrutiny increasing, companies must strengthen collaboration, improve data quality, and explore more practical decarbonization pathways across their value chains.
Policy advocacy is also in the spotlight. Unilever has taken a bold stance, publicly urging trade associations to align their lobbying with the Paris Agreement. As corporate climate credibility faces new levels of scrutiny, alignment between internal climate goals and external influence is becoming an expectation—not a nice-to-have.
In the private sector, fashion is emerging as the next frontier for clean tech. Startups and brands are leveraging AI, material innovation, and new manufacturing models to address the industry’s growing textile waste crisis. Expect to see more investor and consumer attention around circular economy solutions in apparel.
Finally, clean energy momentum continues. According to new business polling, global investment in renewable technologies is projected to triple by 2035—reaching the scale of today’s oil market. Despite political uncertainty, the private sector is pushing ahead with science-based targets and renewables adoption, reaffirming clean power’s role as the backbone of long-term business strategy.
At Summit Strategy Group, we help clients stay ahead of these evolving dynamics—building science-aligned sustainability strategies and governance processes that are credible, resilient, and built to last. Reach out to explore how we can support your ESG goals. Contact us 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.
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What We Read in April 2025
IFRS, TNFD Launch Formal Collaboration on Nature-Related Sustainability Reporting
ESG Today, April 9, 2025
The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have entered into a formal agreement to integrate TNFD's nature-related risk disclosure recommendations into the IFRS's International Sustainability Standards Board (ISSB) framework. This collaboration aims to enhance nature-related financial disclosures for capital markets.
The ISSB and TNFD will collaborate on research and share technical expertise to inform the ISSB’s work on biodiversity, ecosystems, and ecosystem services (BEES). This includes exploring the integration of nature-related aspects into industry-focused sustainability standards.
The updated standard will require faster target-setting for large firms, random spot checks, annual baseline reviews, climate transition plans, and stricter validation rules. Enhanced expectations around data accuracy and supply chain traceability are also emphasized, with full implementation of the revised standard expected starting in 2027.
Immediate Solutions Needed as Companies Struggle to Make Progress on Scope 3 Targets
Voluntary Carbon Markets Integrity Initiative (VCMI), April 16, 2025
Companies encounter systemic obstacles such as high decarbonization costs, limited supplier engagement, and insufficient scalable technologies, impeding progress toward Scope 3 emission reduction targets.
While 46% of surveyed companies reported a decrease in Scope 3 emissions, 38% experienced an increase, indicating challenges in translating climate ambitions into tangible outcomes.
The study underscores the necessity for stronger incentives, clearer guidelines, and collaborative efforts to bridge the gap between corporate climate commitments and actionable decarbonization strategies.
Unilever Pushes Trade Associations to Speak up on Climate Policy
Trellis, April 10, 2025
Unilever conducts yearly evaluations of its key industry associations' climate policy positions. Associations misaligned with Unilever's climate goals are given a 12-month notice to realign, after which Unilever may publicly withdraw membership if misalignment persists.
In its latest assessment, Unilever found that 18 out of 26 evaluated associations were aligned with its climate policies, an improvement from the previous year. However, only five actively support climate policies, while half remain passive, prompting Unilever to urge these groups to take a more active role in advocating for climate action.
Unilever's climate transition plan emphasizes advocacy for national emissions reduction plans aligned with limiting global warming to 1.5°C, appropriate carbon pricing, scaling renewable energy, phasing out fossil fuels, and supporting forest protection.
Fashion Is the Next Frontier for Clean Tech as Textile Waste Mounts
Bloomberg, April 23, 2025
Innovative recycling technologies are emerging to tackle the fashion industry's mounting textile waste, with startups like Circ and Evrnu developing methods to recycle blended fabrics into new materials.
Despite these advancements, the scale of textile waste remains a significant challenge, as global recycling capacities are still insufficient to manage the vast amounts of discarded clothing.
Regulatory measures, such as extended producer responsibility (EPR) schemes, are being proposed in various regions to hold fashion brands accountable for their waste, potentially accelerating the adoption of sustainable practices.
New Business Polling Reveals the Unstoppable March of Clean Power
Forbes, April 23, 2025
Clean energy investments are accelerating globally, with forecasts indicating that the market for core clean technologies like solar panels, wind energy, electric vehicles, and advanced energy storage will triple in value by 2035, matching the current scale of the crude oil market.
Despite political uncertainties, the private sector continues to lead in clean energy adoption, with companies setting science-based targets and investing heavily in renewable energy solutions.
While significant progress has been made, achieving the Paris Agreement targets requires a substantial increase in annual investments, with the UN Emissions Gap Report indicating a need for $8 trillion annually, compared to the $1.7 trillion invested in clean energy in 2023.
