The effects of climate change are ever more apparent this year with increasing temperatures impacting seasonal changes and more frequent unusual weather patterns. For businesses, these real-world factors alongside increasingly uncertain regulatory requirements - such as the Omnibus simplification package in the EU impacting the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) - and the focus on net zero transition plans are making ESG and sustainability a strategic imperative.
As companies evolve their sustainability strategies and consider how to push forward with ESG initiatives, there is increased scrutiny over their actions, impacts and communication messages from stakeholders. Accurate environmental claims retain a strong appeal for consumers, and they are motivated to buy products and services that are genuinely better for the environment. In the same vein, investors are looking to companies for a clear and detailed picture of their ESG activities. But under this ESG lens, what are some of the key issues that are topping business agendas?
In what is New York Climate Week - putting a spotlight on a wide range of climate-related issues - we discuss what themes will be a focus this year and why these are significant to businesses.
What is New York Climate Week?
'Climate Week NYC' in central New York is an established annual event that sees more than 900 events and activities on climate-related issues take place across the city. Hosted by the international non-profit organisation Climate Group in partnership with the UN and the City of New York, it brings together business leaders, politicians and decision-makers, and civil society representatives to help champion change and drive progress on key issues.
Taking the theme 'Power On', this year's event seeks to emphasise the ongoing momentum and progress in addressing climate change. It provides an important platform leading into COP30 (the 30th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC)) in Brazil, covering ten broad themes and with a strong focus on action and tangible delivery against each. Here, we take a look at five of those key themes and what issues and developments are currently topical for many businesses.
The built environment - building better
Climate‑proofing the built environment is now a first‑order policy and market challenge. As governments push toward net‑zero, projects must cut both operational and embodied carbon while withstanding more extreme weather. That trend is reshaping real estate and infrastructure delivery: planning consents increasingly require resilience measures; building codes are moving to performance‑based standards; and grid constraints are forcing developers to rethink how assets are powered. As seen in the UK's energy transition, rapidly evolving rules, technology choices and land constraints demand joined‑up strategies across sectors to keep projects bankable and on schedule.
New standards are setting a tougher baseline. In Europe, the recast Energy Performance of Buildings Directive will make all new buildings zero‑emission from 2030 (2028 for public), alongside Member State renovation targets, Electric Vehicle‑charging readiness and solar provisions; France's RE2020 code is already tightening whole‑life carbon requirements through Lifetime Cycle Assessment.
In the United States, the Inflation Reduction Act is steering billions into efficient buildings and low‑carbon materials, while federal "Buy Clean" procurement now prefers low‑embodied‑carbon concrete, steel, asphalt and glass. Jurisdictions adopting the 2021 International Building Code can also permit tall mass‑timber buildings up to 18 storeys. For those operating in Canada, the 2020 National Model Codes introduced tiered energy‑performance pathways that provinces are phasing in, and British Columbia's Zero Carbon Step Code is driving down operational emissions toward 2030 targets, accelerating electrification and heat‑pump adoption.
Supply chains and due diligence are becoming core project risks. Europe's Deforestation Regulation began applying from late 2024 (with small- and medium-sized enterprise timelines extending into 2025), requiring geolocation‑based due diligence for wood and other covered commodities - implications that cascade to construction products, furniture and finishes. The UK is implementing forest‑risk commodity due‑diligence rules under the Environment Act 2021, complementing the UK Timber Regulations.
Alongside these developments, disclosure regimes are tightening too: the EU's Corporate Sustainability Reporting Directive is phasing in value‑chain emissions reporting, while California's SB 253 and SB 261 will require large companies to disclose greenhouse‑gas emissions and climate‑related financial risks. In practice, developers and contractors are often pivoting to certified timber under systems like the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification, Environmental Product Declarations, and circular approaches such as design for disassembly and material passports to meet client specifications and permitting conditions.
With grids congested, many schemes pair on‑site renewables with storage or private wire networks to de‑risk connections and timelines. The projects that move fastest assemble multidisciplinary teams early to aid collaboration - real estate, planning, energy regulation, construction, procurement and finance - to navigate permitting, lock in compliant supply chains, and structure contracts that reward verifiable carbon and resilience outcomes.
Industry's shift towards a circular economy
Industries worldwide are accelerating their transition from traditional linear models, where resources are used and discarded, to circular systems that prioritise resource efficiency, waste minimisation, and pollution prevention. This shift is being driven both by regulatory pressure and market demand for sustainable products and processes. Sectors such as construction, automotive, and consumer goods are leading the way by integrating recycled materials, designing products for disassembly, and implementing take-back schemes. The construction industry, for example, is increasingly adopting modular building techniques and using recycled aggregates, while the automotive sector is investing in remanufacturing and battery recycling to close material loops.
A key trend is the adoption of digital tools to track materials throughout their lifecycle, enabling better resource management and transparency. Companies are leveraging material passports and blockchain-based traceability to ensure that products can be reused or recycled at end-of-life. The electronics industry, for instance, has made significant advances in designing devices for easier repair and component recovery, setting a benchmark for other sectors. Meanwhile, food and beverage companies are innovating with compostable packaging and circular supply chains that turn waste into new inputs. These advances highlight the importance of cross-sector learning, adapting strategies proven in one industry to others as they seek to reduce ESG risks.
Recent regulatory developments, such as heightened scrutiny of per- and polyfluoroalkyl substances (PFAS), are also prompting industries to rethink their use of hazardous chemicals and invest in clean technologies. Clean-tech companies are pioneering solutions to detect, remove, and even destroy polyfluoroalkyl substances in water and soil, offering hope for communities affected by these persistent pollutants. As clients navigate this evolving landscape, legal and advisory teams are helping them assess supply chain risks, implement circular business models, and comply with new disclosure and due diligence requirements.
Energy transition - making green pay
The transition to a lower-carbon economy brings huge opportunities for growth and innovation in the energy sector. As nations work towards achieving Nationally Determined Contributions (NDCs) for emissions mitigation and climate adaptation, decarbonisation and the move away from fossil fuels to clean energy and renewables is a key priority. But making change happen, and at the required pace, demands investment, supporting policy and all important infrastructure.
Governments and private sectors are ramping up investment to meet climate targets. In the UK alone, it's estimated that £50-60 billion of additional capital investment will be needed to maintain the UK's energy supply and meet sustainability targets up to and beyond 2030 (see the UK's Clean Power 2030 Action Plan). In the shorter term, global energy investment is projected to reach c. $3.3 trillion in 2025, with clean technologies accounting for two-thirds of this total according to the International Energy Association.
However, high interest rates, supply chain disruptions, and labour shortages pose financing hurdles, particularly for capital-intensive renewable projects. By their nature, some renewables projects also bring challenges over location, as well as supporting infrastructure - for example, ground-mounted solar technology requires a much larger physical footprint and scale than traditional fossil fuel-based power stations, putting pressure on availability of suitable land.
In developing energy projects, businesses need to be aware of the potential impact of changes taking place and be creative in how they address the specific challenges of transition. The tech is changing, the regulations are changing, the landscape is changing - and no single factor can be looked at in isolation. We expect discussions at Climate Week NYC to reflect on these trends, the challenges of taking ambition into action and the importance of being able to pivot and find innovate solutions.
Investing in nature
The loss of biodiversity across the globe is a key contributing factor to climate change and so protecting it and restoring it is a priority as part of NDCs, national climate action plans. The UN Biodiversity Conference last year, COP16, placed a spotlight on the challenges and opportunities in taking action to restore nature and help limit global warming to 1.5°C. One of its significant outcomes was the launch of a global fund, named the "Cali Fund", which is designed to mobilise private finance from private sector entities that commercially benefit from genetic data. The fund is expected to generate more than £1bn annually, with proceeds going towards nature protection and restoration.
Investing in nature or 'natural capital', the world's stock of natural assets, is a growing market for businesses and an important dimension of sustainability. In the UK, the introduction of Biodiversity Net Gain (BNG) regulations last year is one example of how policy is helping steer this kind of investment into natural habitats. BNG seeks to mitigate impacts on biodiversity within the country's planning system and improve habitat creation in building developments - either onsite, offsite or through purchasing statutory biodiversity credits. The regime is evolving and is set to be extended to nationally significant infrastructure projects next year.
The EU's Roadmap for Nature Credits, published in July 2025 by the European Commission, is another example of action being taken to help support the achievement of environmental goals. The roadmap sets out a strategic framework for developing a high-integrity market for nature credits across Europe. It proposes a two-step model - certifying nature-positive outcomes and converting them into tradable credit - while ensuring transparency, scientific rigour, and social safeguards. Taking a phased approach, actions are outlined through to 2027, including pilot projects, stakeholder engagement, and incentives to stimulate demand, aligning with broader EU biodiversity and climate strategies.
Through these developments we are seeing collaboration for the greater good and a maturing of nature as an infrastructure asset for business to invest in - taking the right approach here sees both nature win and business.
Creating transport resilience
As climate change intensifies, transport systems across the world face mounting risks from extreme weather, rising temperatures, and sea level rise. Resilient transport is not a luxury, but a necessity for economic stability, social equity, and public safety. When transport networks fail, the impacts cascade - disrupting supply chains, limiting access to essential services, and deepening inequalities.
But while the benefits of a more resilient transport infrastructure are clear, removing some of the barriers is complex and will differ to an extent by location and country. Common issues, however, are fragmented goals, limited cross-sector collaboration, funding constraints, data gaps, and outdated mindsets. Overcoming these requires a shift: establishing shared objectives, fostering collaboration across public and private sectors, and leveraging innovative finance models such as green and resilience bonds. Data-driven decision-making and the adoption of new technologies are also essential to anticipate and mitigate risks.
As discussed in a new UK report 'Transport resilience in a changing climate', produced in collaboration between Gowling WLG, London Transport Museum, global engineering firm Arup, and Hitachi Rail, the transport sector is on the front line of the climate crisis. There is a need for a "resilience mindset," reframing adaptation as an economic and social opportunity rather than a cost. Engaging communities, sharing success stories, and integrating resilience into every stage of planning and operation in the transport sector are all vital.
Ultimately, resilient transport systems underpin thriving societies, enabling reliable mobility, supporting economic growth, and ensuring that no community is left behind in the face of climate uncertainty. Looking across the week of events at Climate Week NYC transport and, in particular, Electric Vehicle policy, public transport and urban infrastructure are among many of the discussion topics.
What are the ESG issues that resonate for your business?
With these just a few of the major themes of this year's Climate Week NYC and more than 900 events taking place, the gathering will bring debate across a wide range of issues. Business will have a strong presence and so there is a huge opportunity for shared learning, exchange of ideas and discussion on what will help shift or 'power on' the move from climate ambition to action.
As businesses continue to evolve their sustainability strategies, evaluate the ESG impacts across their supply chain and consider future plans, there are both challenges and opportunities. Having legal expertise from an international team immersed in the sector and with capability across the full breadth of legal issues relating to ESG gives you the support you need to move forward.
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