Global Alpha identifies five ESG trends for 2025 that mean challenges and opportunities for investors.

First, regulatory frameworks are tightening, with mandatory ESG reporting replacing voluntary disclosures, as seen with the EU’s CSRD and new U.S. and Canadian regulations. Second, energy security and decarbonisation are now dual priorities, driving investments in renewables, energy storage, and carbon capture technologies. Third, climate adaptation finance is gaining traction as companies invest in resilient infrastructure and disaster recovery to mitigate climate-induced losses. Fourth, ESG principles are becoming integral to corporate strategy, influencing supply chains, workforce management, and governance rather than being treated as standalone initiatives. Finally, digital infrastructure and resilience are critical, with businesses prioritising secure data centres, cloud services, and cybersecurity to safeguard against cyber threats and disruptions.

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