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Sustainability has moved from a matter of principle into — simply — good business sense. Now the big challenge is in closing the missing middle between action and ambition.
Executives are recognizing that embedding sustainability considerations into decision-making is simply effective leadership. Who wouldn't want to know where the risks are in the supply chain? What CFO would turn down the opportunity to identify where they can cut waste, costs (and, by the way, carbon)? Would any board not want to mitigate their exposure to rising commodity prices?
We have started to see business and political leaders think more holistically about the impact of their decisions and actions — not just on carbon emissions, but also on ecosystems, biodiversity, societies and individuals. With this 'whole system' lens, leaders are not only forming a better view of their risks but also identifying clear opportunities for action.
Who wouldn't want to know where the risks are in the supply chain?
Business leaders are starting to realize that we are a part of, not apart from, nature. Consider the air you are breathing. One out of every two breaths you take uses oxygen produced by forests and trees. The other comes from tiny plankton feasting on whale and fish excrement in the oceans and seas.1 We know we are losing the fight to protect our forests — global tree cover has declined 12 percent since 2000.2 We are only now waking up to how much damage we've done to our oceans.
The impact on people, businesses and environments is already evident. Storms and climate emergencies are becoming more common. Business costs are rising as leaders grapple with new supply chain and financing risks. The natural environments on which so many businesses depend are under attack; since 1970, the monitored population of mammals, birds, amphibians, reptiles and fish have declined by an average of 73 percent.3
Thankfully, the recognition that we are reliant on nature is becoming mainstream, in part as a result of helpful initiatives like the Taskforce on Nature-related Financial Disclosures (TNFD), which has published recommendations and guidance aimed at helping organizations report on nature-related issues within their businesses and take action on them.
The impact on people, businesses and environments is already evident
Many organizations — public and private — have made public commitments that they are not setting themselves up to meet.
Reset 2025
Which brings us back to the missing middle. The reality is that many organizations — public and private — have made public commitments that they are not setting themselves up to meet. They recognize the risks that lie ahead, yet the focus remains on cost-driven thinking rather than focusing on value protection or value creation.
Inspired by a more holistic view of the risks and opportunities, we believe 2025 will see governments and businesses start to focus on resetting that missing middle. It will be a year where leaders try to align ambition with action, intent with investment and objectives with outcomes
Our prediction and advice
Driven by key regulations and motivated by prudent corporate supply chain management, we expect business and government leaders to start asking the right questions to enact sustainable change. Building owners will likely want to know the origins and footprint of the materials they use. Operators should demand more transparent sustainability information from suppliers. Governments will likely leverage their spend to embed sustainability requirements (particularly in priority policy areas like housing).
It will be a year where leaders try to align ambition with action, intent with investment and objectives with outcomes.
That will require leaders to reassess their commitments and policies to help ensure that — on a day-to-day basis — their organizations are doing things that actually align with their objectives and ambitions. It can also require a clear understanding of what's within their direct sphere of influence and what is not. For many, that will likely mean focusing more clearly on high quality data informing decision-making, and capital portfolio management to identify every asset, their operating condition, their performance and their value to the organization (and its objectives). Only then can the appropriate solutions and roadmaps start to become apparent.
We have entered a new era in the transition to a sustainable future. The way to try to successfully navigate it is by addressing the missing middle
Footnotes
1 How much oxygen comes from the ocean? National Ocean Service, National Oceanic and Atmospheric Administration, June 16, 2024
2 Global Forest Watch Dashboard, accessed Jan 22, 2025
3 Living Planet Report, World Wildlife Fund, 2022
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