ESG Monthly News Update March 2025
ESG Changes in March 2025: Standard Updates, Legal Battles, and Strategic Shifts
March has brought a wave of ESG developments that are reshaping how companies approach sustainability reporting, compliance, and strategy.
Leading the month’s updates is the Science Based Targets initiative (SBTi), which has proposed new criteria for net-zero target validation, set to take effect in 2026. Key changes include tightening emissions reduction pathways to align more closely with a 1.5°C trajectory and revising sector-specific guidance, particularly for high-emitting industries. Companies aiming for SBTi validation will need to reassess their decarbonization plans, ensure data integrity, and prepare for more rigorous scrutiny as part of their net-zero commitments.
Google also made headlines with the launch of its Carbon Footprint for Google Advertising reports, enabling marketers to measure emissions from their campaigns using first-party data. With sustainability disclosure regulations like the EU’s CSRD that mandates companies disclose information on their value chain impacts, tools like this support more accurate Scope 3 emissions tracking and allow marketing teams to play a direct role in corporate sustainability efforts.
On the policy front, Climate United’s lawsuit against the EPA and Citibank over $7 billion in blocked climate funding highlights the risks tied to political shifts and environmental program rollbacks. Businesses engaged in public-private funding initiatives should brace for increased legal and operational uncertainty.
At the same time, the EPA’s sweeping deregulation agenda—aimed at reducing compliance costs—may offer short-term relief for certain industries. Still, the long-term ESG landscape remains shaped by global investor expectations and evolving standards. Our advice to companies is to stay agile, maintain strong governance structures, and invest in transparent, science-aligned sustainability strategies to navigate the road ahead.
At Summit Strategy Group, we help build strong governance processes and ensure that your goals, and the strategies you have to achieve them, are science-backed, relevant, and impactful. 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.
What We Read in March 2025
SBTi Proposes More Flexibility in 132-page Net-Zero Overhaul
Trellis, March 18, 2025
The draft introduces stricter and more detailed guidelines for handling supply chain (Scope 3) emissions, including mandatory target-setting for large companies, a focus on the most emissions-intensive activities, and increased pressure on direct suppliers to set net-zero goals. There's also more flexibility for addressing indirect emissions through sustainable procurement and mitigation strategies.
The SBTi proposes recognizing high-integrity carbon removal efforts before companies’ net-zero target years, with three optional pathways for addressing residual emissions. It’s also considering how to acknowledge the use of carbon credits during the transition period, though specifics are still undefined.
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.
Why Banks Keep Lowering Their Climate Targets
Bloomberg March 6, 2025
Institutions like Morgan Stanley and HSBC are walking back from strict 1.5°C-aligned net-zero targets, citing global decarbonization delays and changing political landscapes, including the re-election of President Trump and the rise of climate-skeptic policies.
The Net-Zero Banking Alliance (NZBA) is facing internal tension and high-profile departures as major banks—including JPMorgan, Wells Fargo, and Morgan Stanley—exit or challenge the 1.5°C goal, raising questions about the future direction and credibility of voluntary climate coalitions.
While scientists say the world is on track to overshoot 1.5°C, experts argue that companies should maintain ambitious targets to avoid watering down accountability and undermining systemic decarbonization efforts, even if those targets are becoming harder to achieve.
EPA Launches Biggest Deregulatory Action in U.S. History
United States Environmental Protection Agency, March 12, 2025
The EPA is rolling back numerous Biden- and Obama-era environmental regulations, aiming to cut trillions in regulatory costs. This move is expected to lower compliance expenses for corporations across sectors like energy, automotive, and manufacturing, making operations and expansions more affordable.
Key deregulatory actions target emissions and reporting rules for oil, gas, and coal industries, while reconsidering vehicle emissions standards and electric vehicle mandates — changes that benefit fossil fuel producers and traditional automakers by easing restrictions and reducing operational costs.
The EPA plans to shift regulatory power back to states, ending or reconsidering federal programs that previously imposed broad environmental mandates. This allows corporations to navigate more locally tailored, potentially less stringent environmental requirements, especially in energy and industrial sectors.
Google to Provide Advertisers with Carbon Footprint Data for Ads
ESG Today, March 11, 2025
Google introduced new Carbon Footprint for Google Advertising reports to help advertisers measure and manage the carbon emissions of their campaigns across platforms like Google Ads, DV360, and Search Ads 360.
The reports align with sustainability regulations like the EU’s CSRD and frameworks such as the Greenhouse Gas Protocol, offering detailed Scope 1, 2, and 3 emissions data to support corporate climate reporting and strategy.
Early adopters, including L’Oréal and Carwow, report more accurate, data-driven emissions insights compared to outdated spend-based estimates, enabling better-informed carbon reduction strategies.
Climate Coalition Launches Lawsuit Against Trump Freeze
Politico, March 8, 2025
A coalition granted federal funds for climate and solar projects filed a lawsuit against the Trump administration and Citibank, claiming unlawful withholding of money from the EPA’s Greenhouse Gas Reduction Fund, without explanation or legal justification.
The suit accuses the EPA of violating administrative and constitutional law, and Citibank of breaching its contract, amid broader efforts by the Trump administration to halt Biden-era climate programs and reallocate funds appropriated under the Inflation Reduction Act.
The frozen funds were intended for EV infrastructure and renewable energy projects. Climate United reports severe operational disruptions, including delayed employee compensation, potential furloughs, and a lack of viable alternative funding sources.
