Third Economy: 2025 Year in Review  

2025 was a transformative year for sustainable business. From framework partnerships to historic energy milestones, the momentum toward a sustainable economy continues to accelerate. 

Despite economic and political headwinds, the business value of sustainability has never been clearer. Today, 91% of global market cap discloses sustainability information—a powerful signal that this work is here to stay and that transparency is becoming the new norm. 

As we reflect on 2025, here are the stories that inspired us and the trends that will guide our work in the year ahead: 

1. ISO and GHG Protocol announce strategic partnership

The two leading organizations in climate accounting announced plans to create newly harmonized global standards with co-branded guidance. This partnership represents a major step toward reducing complexity and improving consistency in corporate emissions reporting worldwide. 

2. Science Based Targets initiative reports exponential growth

The number of companies setting science-based climate targets has tripled in the last 18 months. We're seeing more clients receive vendor requests for validated emissions targets every day, reflecting how science-based climate action has become a business imperative. 

3. OECD reports 91% of global market cap discloses sustainability information 

This milestone demonstrates that sustainability disclosure continues to move from emerging practice to market standard. The business case for transparency continues to strengthen as investors and stakeholders demand comprehensive sustainability data. 

4. Executive survey signals enduring business value of sustainability 

According to a recent executive survey from Morgan Stanley, 88% of companies see sustainability as value creation for their long-term strategy, up 3% from last year. This survey confirms that sustainability continues to gain traction as a core business driver, not just a compliance exercise. 

5. New York will require mandatory GHG reporting for large emitters in 2027 

New York joins a growing list of jurisdictions establishing mandatory climate disclosure frameworks. This new reporting standard for carbon-intensive sectors signals that comprehensive emissions accounting is becoming regulatory baseline rather than voluntary best practice. 

6. California's Plastic Bag Ban goes into effect in 2026 

The state will eliminate all plastic shopping bags from checkout counters starting January 1, 2026, a step up from other bans that have just eliminated single-use bags. This represents one of the most comprehensive plastic reduction policies in the nation, setting a precedent for circular economy initiatives. 

7. Renewable energy provides majority of U.S. electricity for first time

In March 2025, clean energy provided 51% of U.S. electricity compared to fossil fuels' 49%. This historic milestone marks a turning point in America's energy transition and demonstrates the accelerating pace of renewable energy deployment. 

8. Solar energy becomes cheaper than natural gas

Reported in 2025, solar cost $61 per megawatt-hour in 2024 compared with $76 for natural gas. This cost crossover makes the economic case for renewable energy undeniable and will accelerate corporate clean energy procurement. 

9. Colombia reports 33% drop in deforestation

Major progress in Amazon parks shows nature-based solutions are working. Colombia's success demonstrates that focused conservation efforts can reverse deforestation trends, offering a model for protecting critical ecosystems worldwide. 

10. Patagonia's radical sustainability report rewrites corporate emissions story

The company is setting a new standard for transparent climate disclosure. Patagonia’s recent report demonstrates a level of accountability that is both unprecedented and radically honest for corporate climate leadership. 

We're excited to follow the continued evolution of our global frameworks, standards, and innovation opportunities in 2026. We'll be deep in these trends and more on behalf of our clients in the coming year. 

Thank you for trusting Third Economy to do this work alongside you. 

Happy holidays!

Disclaimer: The information provided does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.