The role of tech in driving sustainability

5 predictions for 2025: the future of sustainability powered by technology

Sustainability technologies
  • Blog
  • 4 minute read
  • January 23, 2025

Imagine a world where organisations have real-time insight into their sustainability performance, enabling them to anticipate challenges, track metrics and use data for daily decision-making. In 2024, many organisations have laid the groundwork for adopting technology for sustainability, primarily driven by regulatory reporting requirements. In 2025, we anticipate that many will accelerate their efforts, transitioning from compliance to gaining a competitive advantage through technology.

Below we share our outlook for 2025:

1. Consolidation of the software market

The sustainability software market is rapidly evolving, with new tools seemingly emerging every month. Organisations face the challenge of analysing and selecting sustainability technology solutions that align with their expectations and requirements.

Throughout 2024, we observed that organisations’ sustainability needs are becoming more sophisticated, particularly in areas like predictive analytics, real-time performance tracking and data integration. As a result, organisations are increasingly seeking ‘platform solutions’, which offer a one-stop shop for all their sustainability needs, ranging from reporting and advanced analytics to dashboarding and carbon accounting, rather than relying on a patchwork of different solutions.

Initially, many software vendors focused on providing sustainability reporting software due to increased regulatory requirements. While this remains essential, there is a noticeable shift towards broader capabilities beyond reporting. We expect this trend to continue in 2025, leading to a consolidation of the tooling market, where larger software players will acquire niche providers to offer end-to-end service solutions. This market consolidation is expected to yield cost efficiencies and increased innovation, enhancing the user experience.

2. A new wave of sustainability technology solutions driven by GenAI

We have observed a new wave of solutions driven by Generative AI (GenAI). These solutions automate mandatory and voluntary sustainability reporting by, for example, scanning and analysing existing documentation, automatically assessing relevant data and even generating reports. These specialised tools give a powerful kickstart to the reporting process, providing immediate value by reducing workload. Additionally, established tools are enhancing their offerings with GenAI capabilities.

In 2025, we expect several start-ups to rapidly expand their GenAI-driven service offerings. Concurrently, we predict that established tools will continue to invest in GenAI to improve automation and process efficiency.

3. Industry specific modules

In 2025, we anticipate sustainability software vendors will start experimenting with industry-specific modules. While most current sustainability software is industry-agnostic, each sector faces unique sustainability challenges. Customising solutions with industry-specific modules will enable organisations to more effectively track and manage their sustainability performance in alignment with their operational context and regulatory demands.

For instance, in industrial manufacturing, there is a significant focus on tracking energy sourcing and efficiency. In contrast, logistics companies face the challenge of maintaining a ‘product passport’ for each item in their changing inventory and calculating its associated carbon footprint. In the rapidly evolving sustainability solutions landscape, we expect platforms offering industry-specific modules to take the lead.

man controlling drone
4. Established value stream tools accelerating the pace

Most, if not all, value stream tools (e.g., ERP systems, CRM software and HRIT software) have been developing and marketing ESG modules to support organisations on their ESG journeys. In 2025, we predict they will accelerate their efforts and expand their offerings. Where they cannot develop capabilities at the pace required by the market, we expect more partnerships between large value stream tools and smaller ESG software vendors to offer integrated, end-to-end sustainability solutions.

5. A tipping point for the CIO and IT teams as sustainability architects

Our recent Tech Strategy and AI survey indicates that only 18% of CIOs and technology leaders are actively involved in sustainability discussions and initiatives within their organisations. Currently, leadership often adopts a wait-and-see attitude regarding automating and digitising sustainability reporting. Most reporting processes remain largely manual, and technology is only gradually being leveraged. This approach can be problematic in the long term, as companies are increasingly expected to report transparently on their business operations, both by regulators and other stakeholders such as investors, and to leverage sustainability data for daily decision-making.

Investments in technology largely depend on the organisation's size and ambition levels. In 2025, we anticipate a more involved role for IT teams in integrating emerging reporting requirements into roadmaps for new or upgraded systems. A cross-functional approach is needed, with IT leaders acting as sustainability architects to define the blueprint for future data collection, leveraging existing cloud and ERP systems. Sustainability managers, often referred to as ‘spiders in the web’, will play a crucial role in connecting IT and business experts to ensure successful implementation and meet reporting deadlines.

ai in technology

As we look toward 2025, the intersection of technology and sustainability promises to redefine how organisations approach environmental challenges and opportunities. The consolidation of the software market, the rise of GenAI, the development of industry-specific modules and the expansion of ESG capabilities in value stream tools all signal a transformative shift. This evolution positions technology as a crucial enabler of sustainability, moving beyond mere compliance to become a strategic advantage. Moreover, the growing involvement of CIOs and IT teams as sustainability architects underscores the need for a collaborative, cross-functional approach to integrating sustainability into the core of business operations. By embracing these advancements, organisations will not only enhance their sustainability performance but also drive innovation and competitiveness in the marketplace.

Authors

Xavier Verhaeghe
Xavier Verhaeghe

Partner Technology Consulting & Innovation, PwC Belgium

Xavier is the lead Partner for Technology Consulting and the Innovation Leader for PwC Belgium.
Lina Roosendans
Lina Roosendans

Director, PwC Belgium

Technology Consulting
Dries Catteceur
Dries Catteceur

Manager, PwC Belgium

Technology Consulting

ESG and Technology

Integrating technology to meet ESG ambitions

ESG, sustainability and climate

Transforming business for a better world

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