Agreed - the value of partnerships/shared platforms really resonates with our work as well. Collaboration over competition will be key, particularly in this space!
Mega trends for businesses to watch out for in 2025:
1đIndustry policy is now truly in vogue, especially as âeconomic securityâ dominates policy agendas.
2đ˘Trade barriers are back - an escalation of tariffs is likely. The rules based WTO trade system is under threat as tit-for-tat measures escalate.
3đSecurity of supply is a growing concern, as commodity prices remain uncertain, and rise sharply in some commodities (cocoa & coffee prices soared in 2024).
4đď¸Corporates are focused on compliance & reporting, as sustainability innovation is deprioritised.
1 Like
A2:
Clearly, this is a time for re-thinking approaches and actions by and for business. CSDDD and CSRD in Europe are pushing some large companies in one direction; the backlash and not governmental action against ESG in the US is pushing in the opposite direction.
We know that most companies are moving away from using the sustainability and social change language that was common just a year ago. In some ways the challenges are not new â just the environment is much more difficult to navigate in.
The social impact community needs to find ways to help and push companies take concrete action and worry less about the language used or corporate posturing (which has always been a problem).
The Universal Access Project (UAP) of the UN Foundation did some research during the Pandemic asking corporate execs about what was needed to get companies to make changes that would improve their performance on social issues. We summarized the many findings in the Stanford Social Innovation Review, which underscored the weakness of the business case, the need in some cases for more external pressure and the disconnect between business strategy and responsible sourcing practices. And many noted the lack of significant progress over the last 25 years.
This work cause UAP to create the Accountability Platform for Womenâs Health in Global Value chains to galvanize a community of actors to drive ideas and movement on worker health in workplaces.
Accountability is a fraught word â it points the finger at others. But we wanted to gather womenâs health and reproductive rights groups, business, labor, consultants, researchers, and academics together to hold all of us collectively accountable for doing things differently. Thinking differently. Working together differently.
For those in public health and worker wellbeing, we need to build coalitions where our voice and perspective can join other groups and coalitions. Womenâs health is one of those cross-cutting issues directly relevant to climate and just transition, labor rights, workplace management, womenâs empowerment and gender equality.
Our challenge is to make clear why womenâs and work health (beyond OSH) is not just nice to have but an essential part of a more just and productive economic order.
1 Like
For sure we will need to face up to the challenge of the Sustainability Roll-back tsunami that seems to be in danger of setting back progress by a decade just as we seemed to be having collective momentum rising to the top.
1 Like
A1 part 2/3: Being proactive: We see how effective regulations are in creating momentum, but companies (whether or not they are directly affected by regulations in the immediate future) need to proactively identify material risks in their operations and take action to address them. Look into the companyâs model, its supply chain and truly understand your social and environmental impact. And use that knowledge to focus efforts, partnerships, and investing for change. We canât afford to wait around to react to regulationsâit wastes precious time and even from a compliance perspective companies that wait for the external requirements are slower to adapt when regulations eventually come into effect.
1 Like
A challenge businesses will need to address in 2025 is how to better align their mission with their measurement of social and environmental impactâŚ
âŚso, companies have an opportunity in 2025; in adapting to CSRD etc., to greater engage along the supply chain. This can provide enhanced areas for collaboration and a better idea of real outcomes.
Priority 1 - Contribute to the development of a more dynamic entrepreneurial ecosystem that is supporting of new venture development through practical expertise, market access support, mentorship and early-stage financing.
Priority 2 - Fund the development of local angel networks and patient impact capital funds to support with early-stage financing the enterprises with solid potential to grow.
- What are the most significant challenges the social impact community will likely face in 2025, and how could we approach them?
Funding constraints and a retreat from diversity, inclusion, and sustainability/environmental commitments by parts of the business community are critical challenges. Weâve read about corporate disinvestments and these external pressures may push organizations to compromise, but the path forward is clear: stay anchored to your north star. Collaboration is vitalâpool resources, form cross-sector partnerships, and amplify collective efforts to sustain momentum. Integrity and persistence will transform these challenges into opportunities for deeper impact. We canât do it alone. Resources will be scarce.
100% agree with the need to elevate voices. One of our key approaches is about supporting networks of people to be in touch with each other and plan solutions. Itâs a critical investment in connectivity and solidarity that a lot of groups donât prioritize
Q1. What priorities or actions should businesses focus on in 2025 to maximize their social and environmental impact?
Impact-minded and conscious businesses need to think bigger and act bolder. This means stepping outside traditional boundaries to address urgent needs. Itâs about prioritizing underserved regions and causes, even if it means revisiting budget constraints. Impact should matter more than just profit growth.
Building trust through meaningful partnerships is just as important. But not all partnerships are created equal. Businesses should prioritize local partnerships, local grantmaking, and community support to ensure their efforts resonate where it matters most. In a time of growing polarization and distrust of CSR, ESG, and DEI/B initiatives, a new approach rooted in authenticity, transparency, and trust-building is essential. Invest in communities, amplify underrepresented voices, and create shared value that benefits everyone involved.
And when it comes to sustainability, itâs time to move beyond checkboxes. Businesses can lead the way by reducing carbon footprints, embracing circular economies, and advocating for policy changes that drive real transformation.
As we look toward 2025, one of the most significant challenges we will face is climate displacement. We are already seeing the impactsâjust look at California, where wildfires and floods are becoming more frequent and severe, rendering certain areas uninhabitable. In many places, the cost of rebuilding after each disaster is becoming unsustainable, and entire communities will be forced to relocate.
At the Womenâs Refugee Commission, we understand that climate change and displacement hit women and marginalized groups the hardest. Displaced women face increased risks of gender-based violence, disruption of livelihoods, and lack of access to healthcare and education. These vulnerabilities are compounded by the realities of climate change, and they will only worsen if we donât act proactively.
Business leaders, you have a crucial role to play in addressing this challenge. We need to be investing in climate adaptation and displacement mitigation strategies now. This includes developing infrastructure that can withstand climate disasters, and integrating displaced populations into local economies in ways that benefit both the newcomers and host communities.
Here are a few ways the business community can make an impact:
- Invest in Resilient Infrastructure : Businesses can partner with governments and NGOs to build climate-resilient infrastructure, such as flood defenses and sustainable housing, that can help communities withstand climate-induced disasters. This is already being done in places like Puerto Rico, where public-private partnerships are supporting rebuilding efforts that are more resilient to future storms.
- Support Inclusive Economic Systems : Companies can invest in programs that create job opportunities for displaced people, particularly women. This could include initiatives like providing microloans for small businesses or offering training programs in skills needed for the green economyâskills that will be essential as the world transitions to more sustainable practices.
- Support Policy and Advocacy for Displacement : Business leaders can leverage their influence to advocate for policies that prioritize climate adaptation and the needs of displaced populations. For example, supporting policies that ensure displaced people have access to essential services like healthcare, education, and legal protection. This would align with initiatives like those supported by the Center for Disaster Philanthropy, which advocates for long-term support for communities affected by disasters.
- Create Data-Driven Solutions : By investing in data collection and analysis, businesses can help build better forecasting tools for climate disasters and more responsive systems for supporting displaced communities. This kind of innovation is crucial for understanding the full scope of displacement and creating targeted interventions that address the specific needs of vulnerable groups.
By supporting these kinds of initiatives, businesses can play a transformative role in turning climate displacement into an opportunity for innovation, growth, and social impact. Together, we can create more inclusive, resilient communities that not only survive but thrive, despite the challenges posed by climate change. This is not just an opportunity to help the most vulnerable; itâs an opportunity to create new markets, foster innovation, and build sustainable economic systems that benefit all of us.
2 Likes
Particularly looking at alternatives to US gov funding
1 Like
Q2: What are the most significant challenges the social impact community will likely face in 2025, and how could we approach them?
The ESG backlash will continue and perhaps even magnify in 2025, at least in terms of the disruption of some large and influential stakeholders. Adapting to these disruptions will be critical. The AI impact will also be a double edged sword with significant disruption, The social sector is traditionally and stereotypically a laggard for tech adoption. AI is exponentially more disruptive â for better and worse. Social orgs cannot afford to be a late adoptor!!
A2. I believe the most challenging aspect of 2025 will be a polarization and push back on the progress we have made and our messaging overall. We need to combat the kind of anti-DEI, anti-environmental dialog coming from leaders, esp the US.
a2. Significant challenges in 2025 that we will face include:
Increasing polarization and pressure to focus on national goals over global ones â conscious weâre two days into a new US administration, continued geopolitical issues that are tending to push a local internal agenda vs a wider external inclusive one.
A possible approach is to go back to the stories that connect us, the issues that resonate regardless of whether you may be a consumer or a producer. Food that we all eat, clothes we all wear, cars we all drive. Focus on connection not separation.
All 10 points good. I would emphasise Equality and Inclusion that cross cuts all of them, but so often is a hidden dimension in business and global supply chains.
Challenges for 2025:
Growing legislative requirements - 2025 will be another important year for legislation as companies continue with their compliance journeys with the likes of EUDR, CSRD and CSDDD. Whilst regulation interpretation and subsequent reporting requirements will undoubtedly demand resource from companies, itâs imperative to carry this compliance fairly - keeping open dialogue with rightsholders, prioritising continuous improvement and embedding fair cost sharing. Otherwise we risk leaving undue burden on vulnerable partners
Climate change â We all know climate change continues to exacerbate inequality, with vulnerable communities facing the worst impacts. Building resilience in these communities is key - be it investing in specific carbon reducing projects or transitioning to long term procurement contracts so that communities themselves are able to invest in more climate adaptative initiatives. Research shows mitigation programmes should not just be carbon focused but instead take a more holistic approach to support communities to commit to this transition.
Inequality and social justice â With the ongoing cost of living crisis, the wealth gap, racial and gender inequities and rising social unrest will continue to challenge the social impact community. Advocating for stronger policies that address this systemic inequalityâ be it fair wages, equal opportunities for marginalised groups such as women and people of colour must be prioritized or we risk this gap continuing to widen.
Q2: One of the biggest challenges is our ability to collaborate and work together on shared goals/visions, especially in the current political environment, with increased polarisation etc. Itâs also being brave enough to make big changes to the way that we work to make the significant impact that we need to make.
A2: Given the timing of this conversation, itâs hard to ignore the challenges of political polarisation, culture wars and roll-backs on global commitments by major global economies making policy and progress more challenging. For businesses operating in this volatile context, there is ongoing work to be done internally to define the businessâs ambitions and sustainability needs in response to the climate crisis, increasing inequality and nature and biodiversity loss.
By tuning out some of the outside noise to really focus in on internal engagement and needs, we can continue to drive social and environmental impact where we have the space to influence and create change.
Weâre in a polycrisis which includes the climate crisis, rising social inequality and nature and biodiversity loss. Treating any challenge as a one-dimensional issue which can be fixed with a programme that is delivered solely with a social or an environmental lens isnât effective. We need to think about the multi-faceted impacts that businesses have and take an integrated approach to how we respond. Human rights and environmental due diligence can be used as the starting point to understanding the intersectionality of risks. Inclusive rightsholder and stakeholder engagement offers a platform to understanding multi-faceted risks and co-designing integrated solutions.
1 Like
Important to create an inclusive economic ecosystem with government policy, business policy, social finance and civil society creating reinforcing actions. For example, living wage policies supported by social procurement policies coupled with finance and tax supports for reinforcing change.