Essential sustainability insights from Q2 25

View of the Mediterranean with sun partly covered by clouds. Photo by Dimitris Panagiotaras on Unsplash

Essential sustainability insights from Q2 25

Written by

Daine Lindsay
 

08/08/2025

1. Companies that embed sustainability are 40% more confident of success: EY

Organisations focused on embedding sustainability strategies into their operations were 40 per cent more confident about their success as a business than those treating it as a separate factor, an EY survey finds. ‘Sustainability integrators’ say that their boards are 1.5x more effective in achieving sustainability goals, and experience further benefits such as enhanced brand reputation, improved employee recruitment and retention, and tangible real-world impacts.

2. Greening UK aerospace industry ‘vital’ to future growth

The UK Government will provide £250 million (€340 million) in research and development funding to aircraft engine manufacturer Rolls-Royce and a number of smaller companies and academic partnerships. The funding is intended to elevate the UK’s aerospace industry – which supports 100,000 direct jobs and contributed £13.6 billion to the economy in 2024 – by developing greener technology for air travel, including research into zero-emission flying, laser-beam manufacturing and more sustainable manufacturing practices.

3. London Marathon recycles 1,000 litres of urine into fertiliser

This year’s London Marathon saw around 1,000 litres of urine collected using circular technology developed by environmental sustainability company NPK Recovery to recycle and convert waste into fertiliser. The fertiliser is planned to be used in tests to assess its performance on wheat growth.

4. EU sees moderate progress in some sustainability measures, but worsening drought and biodiversity

Over the past five years, the European Union has made “moderate progress” towards improvement in responsible consumption and production, affordable and clean energy, sustainable cities and communities, and climate action, but has moved away from achieving goals in clean water and sanitation, protection of marine life and biodiversity, according to its latest monitoring report on progress towards the UN’s Sustainable Development Goals. The report states that the 10-year moving average of drought impact on EU ecosystems increased by 68.9 per cent between 2018 and 2023, while ocean acidification in the northeast Atlantic, Mediterranean and Black Sea has risen by 3 per cent since 2019 and by 8.2 per cent since 2009. It also found that, between 2008 and 2023, common bird populations in the EU declined by 7.8 per cent and grassland butterfly populations dropped by 20.1 per cent.

5. Despite reduced policy focus on environment, sustainability still presents viable business case

As European policymakers’ concerns shift to defence, tariffs and interest rates, they are putting less focus on climate change and the energy transition, economists at ABN-AMRO have found. Despite this, their April report notes that “sustainability continues to present a viable business case for companies”, largely because of regulation, consumer preferences and profitability. An average of 80 per cent of EU citizens say that environmental issues directly affect their lives, and 86 per cent agree that environmental legislation is needed to protect the environment in the EU.

6. Increased textile recycling could save 8.8 bn m3 of water: EU research

Reaching a 10 per cent target for textile-to-textile recycling in the EU has the potential to reduce the fashion industry’s carbon footprint by 444,000 tonnes per year and cut water consumption by 3 per cent – equal to 8.8 billion cubic meters of water, according to researchers from IVL Swedish Environmental Research Institute. Starting in 2025, EU member states are required to establish separate collection streams for used textiles.

7. McKinsey: Packaging producers need proactive and data-driven approach to sustainability

A significant portion of consumers around the world say they think about the environmental impacts of product packaging, although the proportion has remained “fairly consistent” since 2023, according to an annual survey conducted by McKinsey. The survey of more than 11,000 people from across 11 countries found that 39 per cent of respondents say environmental impacts are “extremely” or “very” important, compared to 38 per cent in 2023. In its summary of the research, McKinsey writes, “As a result, packaging producers looking to stay ahead of the game will need to take a data-driven, granular, and proactive approach to their future sustainability strategy.”

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