A1: Businesses need to focus on navigating rapid changes at all levels of their supply chain. From extreme weather events all over the world, to the fact that 600 million women live in a conflict zone (https://www.care.org/resources/women-in-war/), to the rapid shifts happening in micro and macro markets—paying attention to people’s abilities to successfully manage changes is critical not just for social and environmental impact, but also for the health of businesses overall. To take just one example, more than 20,000 women have talked to CARE about what impacts crises have had on their lives since 2020, and without fail, livelihood is one of the biggest needs women express. More than aid, more than food, more than health—women want to be able to work so they can bounce back. https://www.care.org/our-work/disaster-response/emergencies/covid-19/women-respond-leadership-covid-19-response/
Here’s another example: an extreme weather event affects people’s food security for up to 5 years after the shock. That means it’s going to impact their ability to eat, which has follow-on affects for work, for agriculture production, for school, for savings. All of that builds into how resilient (or how fragile) our global supply chains are. Businesses that aren’t looking at agility and the ability to bounce back are going to struggle in the next 5 years. https://www.care.org/resources/starving-for-equality/
We also have to understand that social and environmental concerns are not just about charity or compliance—they are core investments in businesses, sustainability, and resilience. There is increasing demand from consumers for companies to address climate change concerns, be transparent in business impacts on society and the environment, and to build businesses that can take us into the future. The increasing disruptions to people’s lives all over the world show that we need to take a new approach to how we’re solving problems.
Couldn’t agree more Anita, collaboration is needed more than ever. Whether its joining forces with other businesses, governments, or non-profits, industry collaboration is critical to addressing systemic social and environmental challenges. Here at Fairtrade we have introduced initiatives including Shared Impact which brings businesses, farmers and workers together to tackle evolving challenges such as low wages and incomes, climate change and new legislation. When we work together, we can achieve so much more
What are the most significant challenges the social impact community will likely face in 2025, and how could we approach them?
-Significant challenges include:
- Move towards nationalism/isolationism
- Funding cutbacks for social impact from both public and private sectors with shifting political/geopolitical climate
- It will be difficult to remain above the mainstream chatter amidst shifting political tides.
-How should we approach them?
- Do the most good with what you have; constraints may be different, but find ways to leverage the resources you have by connecting them to the business case and working through a design thinking process.
- We need to collaborate across sectors, focus on community-driven solutions, and use technology responsibly (thinking of AI here).
- By including diverse voices, measuring impact effectively, and addressing root causes instead of symptoms, we can create meaningful, long-term change
Using their purchasing power as a lever for change - focusing on embedding purpose-led enterprises into their supply chains - B2B, B2G, B2C - social/environmental procurement.
A1: Businesses should set an example around the importance of DEI and protecting our most vulnerable populations. The voice of business is going to be incredibly important in the coming years to ensure we don’t backslide on these important issues.
Yes Selen, and I would add to this that businesses need to hire refugees
Very much agree with Cate - NDCs “3.0” are intended to support a growth, jobs, innovation and investment as “verticals”, with just transition and social aspects as key “horizontals”. Also increasing linkage to FFD4 and financing in 2025 will be key.
Question 1
- Businesses should continue to focus on measuring their social and environmental impact to understand the positive and negative externalities of their work.
- Use the information to examine the long-term commercial benefits of social and environmental initiatives to their business, and then use it to develop programs and policies that are both commercially beneficial while delivering social impact.
- Partner with other companies and organizations in their field to drive joint initiatives on social and environmental impact. Advocate for change within their industry and government policies together.
- Strengthen engagement with actors along the entire value chain to reach underserved communities, while improving supply chain resilience. Invest in climate adaptation and mitigation strategies to build resilience against climate-related risks and support long-term business sustainability.
More coordination in our work at regional level. If possible, at country level to make more impact.
For companies in the agriculture sector:
b) Get involved in landscape level alliances that enable sustainable, climate-resilient agriculture and restore biodiversity.
Example
Practical Action is leading a consortium working in areas of high biodiversity in the Andes Amazon in Peru and Ecuador, which are also important coffee and cocoa growing regions, as well as home to many indigenous people who rely on agriculture. Partners are working with coffee, cocoa and indigenous famers to support moves to more regenerative and climate resilient farming practices supported both through strong markets with international buyers and carbon finance based on increased agroforestry and carbon sequestration.
- Action: Do stuff that lead to concrete, shareable and scaleable outcomes. Those are the three questions you should ask of anything you are trying to do:
- Does this actually move the needle on improving the lives of specific people, communities or reducing our impact on our planet?
- Can I measure this movement and tell stories about it so that others can know that we are trying and learn from what we are doing?
- If I do this, am I learning how I might do more?
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Forward: This moment, this framework, all of it shall pass. How do you build a more sustainable, equitable future? If you’re exploring how to DO that in some way – not the whole question – you will be positioning yourself for whatever comes. Building the future you want is deeper than AI etc – it’s constraining in the long-term outcomes you want.
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Less. Not all the SDGs; not CCUS, not saving the world. Reduce water consumption. Provide healthcare to the migrant workers that pick your crops, or the women in your factories. Test. Innovate. Iterate. Scale. No-one has the right answer, there are no easy answers, and no-one is running a sustainable enterprise, so you will have to innovate and experiment.
- Advancing Gender Equality in Financial Inclusion
- Develop and expand financial products tailored to women, such as microloans, savings accounts, and insurance products that address their unique needs.
- Partner with financial institutions to promote women-led small and medium-sized enterprises (SMEs), ensuring access to affordable credit.
- Leveraging Technology for Inclusion
- Invest in digital infrastructure that enables women in underserved communities to access financial services via mobile platforms.
- Use AI and data analytics to design personalized financial literacy programs that empower women with knowledge and skills.
- Fostering Sustainable Development
- Design climate-resilient financial solutions, such as green loans for women in agriculture or clean energy access.
- Engage women in climate-focused entrepreneurship to create opportunities while addressing environmental challenges.
- Promoting Employee Engagement in Social Impact
- Encourage employee participation in mentorship programs for women entrepreneurs.
- Build internal awareness of the importance of gender equality as a core part of ESG (Environmental, Social, and Governance) strategies.
A1 part 1/3:
Climate: We should all be urgently focused on climate change and the many evident changes and impact of it, while actively repairing and mitigating contributions to the problem. Businesses must embed climate action into their core strategies, treating it as nonnegotiable rather than optional.
A few important priorities from our perspective:
- Capacity-building - building internal knowledge and skill to advance inclusive business practices.
- Peer support: building peer networks for mutual capacity-building / problem solving.
- Building / strengthening - cross-sectoral networks (govt, civil society, business)
- Making the business case (to the public and to government)
- Impact measurement - development of robust indicators of business and social progress.
:
SDGs remain a useful strategic framework, which most businesses are already using as a framework for their Soc & Env priorities and plans. So, perhaps now is a good time to be reflecting on progress toward plans and refresh based on new conditions, changing circumstances, etc. Energy transition is perhaps one of the bigger issues that EVERYONE should be (or becomming) much more familiar and engaged on. Adoption, use of AI in every facet of your work should be another top priority-- this is digital transformation with the afterburners on.
To maximize their social and environmental impact in 2025, businesses should prioritize the following actions:
1. Embrace a systems thinking approach:
- Recognize the interconnectedness of social and environmental issues and how business operations impact these systems.
- Collaborate with stakeholders across industries and sectors to address complex challenges collectively.
2. Set ambitious, science-based targets:
- Align environmental targets with the latest climate science, such as the Paris Agreement goals.
- Establish social targets that address inequality, human rights, and community well-being.
3. Integrate sustainability into core business strategy:
- Embed social and environmental considerations into decision-making processes across all departments.
- Develop new business models that prioritize regeneration, circularity, and shared value creation.
4. Invest in innovative solutions:
- Support research and development of clean technologies, sustainable materials, and nature-based solutions.
- Adopt digital tools and platforms to track and optimize social and environmental performance.
5. Engage stakeholders transparently:
- Communicate openly about progress, challenges, and lessons learned.
- Seek feedback from employees, customers, communities, and investors to ensure accountability and continuous improvement.
6. Advocate for policy change:
- Use their influence to promote policies that support a just transition to a sustainable economy.
- Collaborate with industry peers and civil society organizations to drive systemic change.
A1: What priorities or actions should businesses focus on in 2025 to maximize their social and environmental impact?
In 2025, businesses—especially small businesses—should prioritize people as the heart of their strategy. Investing in talent development, understanding intergenerational workforce needs, and creating formal jobs that pay living wages will drive both profitability and impact.
Small businesses are uniquely close to the challenges their communities face, positioning them as natural problem-solvers. Strengthening a culture of trust and collaboration is critical—engage local actors, involve the community in planning, and co-create solutions that address shared challenges.
A1: In 2025, businesses need to focus on addressing the most pressing challenges that affect vulnerable groups such as children, youth, particularly mental health, child protection, and climate action. These are interconnected issues that require thoughtful, holistic approaches.
- Mental Health and Youth: Mental health, especially among young people, is a critical issue that can no longer be ignored. With 1 in 7 young people worldwide between the ages of 10 and 19 are living with a diagnosed mental disorder, and suicide being the 4th global leading cause of death among youth with almost 46,000 young people dying from suicide every year, businesses must take action, especially since nearly USD 390 billion of human potential is lost globally each year due to the lack of investment. Increasing investment in mental health programs for youth and advocating for stronger mental health policies is essential. Companies can also lead by creating supportive environments for their employees and their families, promoting mental well-being across the board.
- Child Protection and Online Safety: As children spend more time online, the risks to their mental health grow. Cyberbullying, online sexual abuse and exploitation, and the pressures of social media are harming youth around the world. Businesses have a responsibility to ensure online spaces are safer for children, especially tech companies. This includes supporting policies that protect kids from online harm and investing in initiatives that foster safe, healthy digital environments.
- Climate Action and Mental Health Resilience: Climate change isn’t just an environmental problem, it’s a mental health crisis too. We know that climate disasters cause anxiety and trauma, especially for young people who are already facing an uncertain future; “eco-anxiety” or “climate anxiety”. In 2025, businesses need to integrate mental resilience into their climate action efforts. This means not just reducing emissions but also providing psychological support to communities affected by climate change. As companies take steps toward environmental sustainability, they should remember that building mental resilience is equally important.
Nice to join you all. Daniel Rostrup here, currently working with the World Economic Forum. https://www.linkedin.com/in/danielrostrup/
A1: Companies should partner strategically with social enterprises in order to create value for people, the planet, and profits. For example, by inserting social enterprises into companies’ supply chains, we can create transformational impact all around. Companies can also create impact venture funds, thereby investing in social/climate solutions. Skills based volunteering is also a great way to harness employees’ skills to benefit social ventures (and has many positive benefits on staff retention, hiring top talent, employee job satisfaction, etc.) These are just a few examples. By going beyond sustainability and impact as a tickbox exercise and instead making it strategic, we can create impact AND make profit.
Bizarrely, I think one of the priority areas we can tackle in 2025 is to ensure that businesses can truly appreciate the value of what they are doing on Human Rights & Environmental Due Diligence as opposed to questioning the cost of their activities and complaining about the lack of a “level playing field”.