Sustainability due diligence in 2025 stands at the intersection of uncertainty and clarity. While major regulatory developments — such as the EU Omnibus simplification package and Germany’s push to delay aspects of the Corporate Sustainability Reporting Directive (CSRD) — create uncertainty, some trends are becoming unmistakably clear. Elevated transparency standards, stricter greenwashing penalties, rising climate risks, labour rights enforcement, and the growing value of supply chain data are shaping the way businesses operate.
As regulatory expectations rise and global challenges intensify, businesses that prepare for these shifts will strengthen compliance and build resilience. Below, we explored 5 key trends reshaping supply chain due diligence in 2025, offering insights into how businesses can adapt and thrive in a rapidly changing landscape.
Elevated standards in sustainability reporting & due diligence
Sustainability reporting is no longer nice-to-have. It has evolved from a competitive advantage to a fundamental business requirement, particularly in light of new regulatory frameworks.
In the UK, the development of Sustainability Reporting Standards (SRS) is underway, with a draft expected by the first quarter of 2025. These standards are anticipated to align with the International Sustainability Standards Board's (ISSB) framework, which focuses on financial materiality — assessing how sustainability issues impact a company's financial performance. In contrast, the European Sustainability Reporting Standards (ESRS) employ a double materiality approach, considering both financial impacts and the company's effects on society and the environment.
Meanwhile, the consequences of ignoring supply chain transparency are significant. Non-compliance with regulations carries severe consequences:
The stakes of false green claims are getting higher
By 2025, the financial and reputational consequences of greenwashing have intensified, with regulators imposing severe penalties. Over the past year, several well-known brands have faced investigations and lawsuits for deceptive sustainability messages. For instance, in 2024, the fast fashion retailer Shein came under scrutiny by Italy's antitrust watchdog for potential greenwashing, particularly concerning its "evoluShein" collection and decarbonisation efforts. Similarly, in September 2024, California filed a landmark lawsuit against ExxonMobil, alleging the company misled the public about the recyclability of plastics, exacerbating environmental pollution.
New regulations, such as the UK's anti-greenwashing rule and the EU Green Claims Directive, mandate transparency and scientific validation of sustainability claims. Businesses must ensure all environmental messaging is truthful and backed by robust evidence to avoid these penalties and safeguard their reputation.
Companies making unsubstantiated environmental claims face significant fines, such as up to 10% of global turnover in the UK and "effective, proportionate, and dissuasive" sanctions under EU regulations, which give businesses only 10 days to validate claims.
Extreme weather disruption is the new normal
According to Mongabay and WoWorld Weather Attribution (WWA), at least 219 significant weather events met the criteria for major disasters globally. These events affected approximately 18 in every 1,000 people across the globe . Looking ahead, the Met Office projects that 2025 is likely to be one of the three warmest years on record, continuing the trend of increasing global temperatures. This persistent warming is expected to contribute to more frequent and severe extreme weather events, such as heatwaves, storms, and heavy rainfall. The World Economic Forum's Global Risks Report 2025 identifies extreme weather events as the second highest global risk over the next two years, underscoring the escalating threat they pose. Companies that can proactively identify and mitigate weather-related threats will be better positioned to maintain resilience and continuity in their supply chains.
Ethical labour practices is gaining more attention
Labour rights are becoming central to supply chain due diligence, with 2025 expected to bring increased scrutiny across major economies. The US is expanding its Uyghur Forced Labor Prevention Act (UFLPA), while the UK has a growing call to strengthen its legislative measures. Some advocates even suggest adopting elements similar to the UFLPA. Recent inquiries have revealed gaps in current legislation, such as reliance on self-reported audits and weak enforcement mechanisms.
The UK is currently set to strengthen its Modern Slavery Act 2015 with mandatory human rights due diligence, import ban and stricter penalties. These partially align with EU developments, including the new forced labour regulations in a three-year preparation phase. Companies must proactively map value chains, implement thorough due diligence, and address risks in high-exposure regions like Xinjiang to avoid market exclusion and reputational damage.
This evolving landscape highlights that ethical labour practices are crucial for compliance and competitiveness in increasingly transparent markets. Businesses investing in robust monitoring systems and partnering with trusted entities to enhance supply chain visibility will emerge as leaders in ethical sourcing.
Supply chain data as a competitive advantage
Detailed supply chain data has moved beyond compliance requirements to become a key differentiator. Companies capable of efficiently gathering, analysing, and acting on this data will identify risks more effectively and adapt faster. Traditional manual due diligence processes, such as back-and-forth emails, are no longer sufficient. Businesses leveraging AI-powered insights will outpace competitors by making quicker, smarter decisions based on actionable data.
Bendi’s AI-powered risk screening platform enables businesses to fully utilise their supply chain data, providing advanced tools to streamline due diligence, improve transparency, and address risks proactively. Contact us to learn how we can support your goals.
