Is 2025 the year carbon takes centre stage?

The countdown to 2025 is on, and with it comes a major shift in how businesses approach sustainability. In New Zealand, mandatory emissions disclosures are set to begin, with Scope 3 reporting following closely behind. Meanwhile, global pressure is growing for companies to move beyond tracking emissions to taking tangible steps toward reduction. This blog explores three key trends that will shape the carbon landscape in 2025 and how businesses can lead the way in building a more sustainable future.

From reporting to reducing

The new mantra: Measure less, act more. 

For years, companies have focused on measuring and disclosing their carbon emissions, but 2025 marks a turning point as both regulatory and societal pressure to reduce carbon increases.

In New Zealand, the timeline requires businesses to disclose their emissions starting in FY25, with reporting on Scope 3 emissions to follow a year later. While the UK’s delay in implementing similar rules has created breathing room for some, it’s clear the focus is shifting from compliance to proactive carbon reduction.

For most companies, the bulk of their emissions lie not within their operations but in the ecosystems they depend on, meaning the challenge is no longer just tracking carbon, but empowering suppliers and customers to cut emissions. Collaboration is key, and 2025 will see businesses investing in tools and partnerships that enable them to tackle carbon holistically.

Cogo’s Carbon Manager makes it easy for businesses to measure their carbon footprint and it can be used by large corporations and banks to engage their supply chain to submit accurate data on their Scope 3 emissions.

Greening the bottom line

Carbon cuts that make financial sense.

Sustainability isn’t just good for the planet - it’s a sound financial strategy. As energy costs rise and consumers demand greener products, businesses are increasingly asking: “How can we save customers money and reduce carbon while driving our own profitability?”

This is an opportunity for financial institutions to lead. By offering green lending products, banks can help households and businesses fund transitions to solar panels, energy-efficient machinery or fleet electrification. This approach allows banks to ‘green and grow’ their loan books, driving economic value while promoting sustainability.

Banks can also play a crucial role in accelerating the home energy transition, driven by both regulatory mandates and commercial opportunities. By leveraging data on energy use and carbon footprints, banks can offer customers personalised advice and financial support, engaging them to reduce emissions and energy costs. 

SMEs will feel the ripple effects of regulation

No business is too small for sustainability.

While large corporations often dominate the headlines, the ripple effects of sustainability regulations will hit small and medium-sized enterprises (SMEs) hard in 2025. Why? Because large businesses, under pressure to disclose Scope 3 emissions, will demand accurate carbon data from their suppliers.

For SMEs, this means adapting quickly to new reporting requirements or risk losing valuable contracts. Many small businesses are already exploring solutions like to measure their footprints and align with corporate sustainability goals.

The result? Sustainability will no longer be a ‘big business’ issue. SMEs will find themselves on the frontline, driving emissions reductions across supply chains and reshaping the entire business ecosystem.

Why 2025 matters

This isn’t just another year in climate action—it’s the year where carbon reduction strategies will define business success. Companies that embrace this shift will not only meet legal requirements but also build resilience, cut costs and earn the trust of increasingly eco-conscious customers.

Is your business ready to lead the way?