As 2025 draws to a close, the global sustainability agenda stands at a crossroads. While there has been some back-pedaling and prevarication in some quarters, there is still strong evidence that across industries and geographies, organisations and governments are no longer short on ambition - many have set bold strategies and public commitments.
The Oxford Net-Zero tracker shows that net-zero targets set by countries and large organisations cover 74% of the world's emissions. And despite what some might have expected, in the USA, net-zero commitments grew 9% this year, and there is significant growth in coverage coming out of China too.
Additionally, as many as 67% of country targets are now enshrined in law or policy which means that for most countries their governments are likely to introduce measures and mechanisms to enable the climate transition for their economies.
The 2025 BDO Global Sustainability Survey found that 87% of respondents say sustainability is important to their business strategy and 83% report a competitive advantage from an embedded sustainability programme.
Yet, the real test lies in translating ambition into measurable, practical action that delivers lasting value for business, society, and the planet.
“I’ve heard it said that we don’t need hope,” says Allan Evans, Global Head of Strategic Projects and BDO’s Sustainability Lead. “We just need action as we have all the solutions within reach. And action requires leadership, bravery, financing, and a commercial return.”
Our sustainability professionals share their thoughts about how we can ensure the sustainability agenda remains as relevant to business as the AI revolution.
From rhetoric to reality
A recurring theme is the need to move beyond aspirational rhetoric to ensure that sustainability speaks the language of business in terms of finance, risk and strategic planning.
Hannah Routh, Partner and Head of Sustainability and ESG Services at BDO UK notes: “The biggest challenge for the sustainability agenda isn’t a lack of ambition. Many organisations, including our clients, have strong strategies and clear commitments, and are currently seeking to turn those ambitions into measurable, practical action. The solution lies in linking sustainability objectives with core business objectives such as value creation and risk management – that way the process of embedding and delivering becomes simpler.”
"The challenge isn’t commitment but conviction. Until business leaders see sustainability as a source of value, not effort, fatigue will persist. Strategy, not slogans, is what sustains impact. Embedding sustainability into core business decisions is how real transformation takes root."
Josephine Tam, Executive Director, BDO Singapore
Deborah O’Connor, Associate Director, Sustainability at BDO South Africa agrees, noting that true transformation requires accountability. “The greatest challenge is turning sustainability from a reporting exercise into real behavioural and transformative change. The solution is accountability, linking social and environmental outcomes to leadership performance and incentives, embedding them in everyday business decisions.”
Alejandro Wilches Segovia, Partner, Sustainability Advisory for BDO Interamericas, believes that because sustainability often speaks a different language to many business functions, decisions are structurally misaligned. However, by placing the CFO, Chief Sustainability Officer and Head of Risk, for example, together at the same table, they’re able to jointly consider the financial and non-financial impacts, dependencies, risks and opportunities across all aspects of ESG – and this becomes one single, quantified sustainable strategy.
Supply chain transparency
Azzam Hamaideh, Advisory Partner, BDO Jordan, identifies a challenge in shifting sustainability commitments into systemic, operational reality throughout value chains. To overcome this, BDO Jordan emphasizes complete supply chain transparency when evaluating supplier contracts and partnerships.
The energy transition and digitalisation
As we know, the rapid evolution of technology, especially artificial intelligence, is reshaping energy demand. Karen Baum, Managing Principal, Sustainability & ESG Center of Excellence at BDO USA observes: “AI is rewriting the energy demand curve, and legacy systems can’t keep up. The solution is to accelerate investment in clean baseload power - nuclear, renewables with storage - while modernising grids and incentivising efficiency, ensuring that digital progress fuels a sustainable future rather than undermining it.”
Embedding sustainability in corporate culture
Many organisations struggle to align business objectives with sustainability goals. Audrey Leroy, Associate at BDO France recommends that sustainability be embedded into the core values of the organisation, making it a non-negotiable part of the decision-making process.
“This should involve continuous education and training for all employees, fostering a culture of accountability and transparency, as well as establishing key performance indicators (KPIs) to track the effectiveness of the sustainability actions implemented. KPIs demonstrate the tangible benefits of sustainability initiatives, making it easier to gain buy-in from all stakeholders.”
Communication
While regulatory uncertainty dominates conversations, many companies are instead focusing on refining the management of their most material ESG impacts, risks, and opportunities. “Communicating both the urgency and importance of these matters to decision makers remains a key challenge to most, and therefore, maintaining a structure, engaging, and open communication with key stakeholders is paramount for developing effective action plans,” stresses Fani Xylouri, Senior Manager, Sustainability Advisory Services at BDO Luxembourg.
Water Credit for recovery and investments
One of the most overlooked challenges in global sustainability is water efficiency, notes Carlo Luison, Partner for Sustainable Innovation at BDO Italy.
“It’s a growing crisis that affects communities, ecosystems, and economies worldwide. BDO Italy's Sustainable Innovation team draws on 25+ years of experience in carbon management to tackle this issue head-on by investing in the research and development of a ‘Water Credit’ system, a practical, scalable tool designed to help communities with water recovery and efficiency. This approach ensures water is either reused or preserved by reducing withdrawals from natural sources. Sustainability leaders should be integrating water efficiency into their ESG strategy – and innovative tools like Water Credits can unlock co-benefits and accelerate impact across climate, community, and compliance goals."
Looking ahead, positively
Despite the complexity and scale of the many challenges, there is optimism and resolve. The past year has shown that when organisations align ambition with action - grounded in transparency, innovation, and accountability - real progress is possible.
As we close out 2025, let’s celebrate the strides made and look forward to 2026 where sustainability is not just a goal, but a lived reality embedded in every business decision.