The ecological and social problems that prompted the foundation of the Pentland Centre continue to evolve and intensify. The physical impacts of climate change (floods, fires and disrupted weather patterns) emphasise how critical it is to continue to reduce emissions. In addition, global concerns about the resilience of nature were formalised by the passage of the Kunming-Montreal Global Biodiversity Framework in 2022, with business engagement around this topic accelerating. Progress toward a more equal society is also essential, with the impacts of Covid and the global cost-of-living crisis creating higher levels of inequality. Finally, concern about novel materials in the environment (most obviously plastics) is becoming the subject of international collaborations. With these aspects in mind, the Centre has undertaken horizon scans with its members and the Advisory Board on where, and how, the sustainability in business agenda is likely to evolve. This has yielded four trends that will shape our current and future work. A focus on business dependencies on nature (including a stable climate system) and the introduction of reporting protocols that support investors to quantify the financial impacts of environmental change. This work is predicated on the ability to develop scenarios of future operating environments to inform business strategy (see page 17). In addition, transition planning is required to ensure corporate strategies/targets will be achieved. Likewise, proposals for legal requirements for nature restoration are being advanced, which raise questions about the impact this may have on business operations, raw material access, and the need for business to restore ecosystems they draw from/operate within (see page 18). The impact of sudden changes (in terms of biodiversity loss or climate change impacts) will also require greater disaster and resilience planning. The further widening of business responsibility for supply chain impacts through due diligence regulations, modern slavery reporting requirements, and import bans for products made with forced labour is a global trend (see pages 10-11). Businesses who are subject to these demands will need better traceability systems and to be transparent about their activities, disclose where problems exist (within the bounds of confidentiality and commercial sensitivities) and disclose how they have remedied problems they have found. The integration of corporate and investor action for sustainability is evolving, with investors, funders and insurers needing to identify how they are enhancing sustainability in business alongside existing corporate action. Translating physical risk to financial risk is a critical element in this setting both for investors and for financial markets. See page 17 for a review of the Centre’s work on the Taskforce on Nature-Related Financial Disclosures, a corporate governance device that makes these links. Sustainability in business requires transitions and transformation with the idea of a ‘just transition’, ensuring that the benefits of transitions are shared fairly. A focus on justice also highlights that environmental benefits and burdens are not currently equally distributed, and that marginalised groups and communities are more exposed to burdens and have less access to benefits. Intellectually these issues sit at the intersection of environmental law and political theories. Future Trends in Sustainability in Business 5 A Pentland Centre Research & Impact Digest, 2025
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