www.thinkstep-anz.com

From February issue NZ Manufacturer magazine

Sustainability is no longer a “nice-to-have”—it’s a must-have. For New Zealand manufacturers, 2025 will bring new challenges and exciting opportunities. As the world grapples with climate change, resource scarcity, and shifting regulations, businesses that embrace sustainability will not only keep up but thrive.

To stay competitive, manufacturers need to navigate changes in climate adaptation, the circular economy, transparency, and stakeholder expectations. It’s about planning ahead, staying flexible, and taking action. Here are six practical tips from thinkstep-anz’s sustainability experts to help you lead the way in 2025.

1. Stay financially, environmentally and socially sustainable

2025 is expected to bring continued disruption and uncertainty on the global stage. Political and economic turbulence may distract some industries from their sustainability goals. However, maintaining focus on long-term objectives is critical.

“Succeeding sustainably means being financially sustainable as well as environmentally and socially,” explains Emily Townsend, Services Director at thinkstep-anz.

For manufacturers, this means building resilience by investing in sustainable practices that match up with stakeholder priorities and market expectations. Even if external pressures temporarily lessen, pushing forward with sustainability can pay dividends in the long run.

Your Action: Review your sustainability strategy to ensure it balances environmental goals with financial and social resilience. Focus on initiatives that will have long-term benefits for your business and stakeholders.

2. Prepare for the circular economy to go mainstream

The circular economy is no longer a niche concept. In 2025, manufacturers exporting to the EU will face increasing requirements to quantify and communicate the circularity of their products. Aligning with standards like ISO 59020 and incorporating circularity metrics into Environmental Product Declarations (EPDs) will become essential to maintaining market access.

“We’ll see the circular economy go mainstream,” predicts Jim Goddin, Head of Circular Economy at thinkstep-anz. This trend is also gaining traction locally, with Green Star for Buildings introducing circularity metrics. Manufacturers who act now to measure and improve circularity will gain a competitive edge.

Action: Start gathering data to assess your products’ circularity. If you’re already working on an EPD, consider adding circularity metrics like the Material Circularity Indicator (MCI). Even without an EPD, measuring circularity will position your products to stand out in the market.

3. Focus on climate resilience and adaptation

With the reality of surpassing the 1.5°C warming threshold becoming increasingly likely, climate adaptation will take centre stage in 2025.

“Adaptation, transparency, and innovation will define the sustainability landscape in the year ahead,” says Katharina Bauch, Head of Carbon at thinkstep-anz. High-quality carbon data and transparent reporting will be essential as businesses strengthen their resilience to climate risks.  Working with your suppliers to get better data on your Scope 3 emissions does more than just improve accuracy. It builds stronger relationships and helps you find ways to cut emissions together.

Your action: Collaborate with your suppliers to collect accurate emissions data and improve your carbon disclosures. Explore how you can simplify and improve your GHG reporting processes.

4. Be transparent about your sustainability commitments

In a world of increasing scrutiny, transparency is non-negotiable. Consumers, investors, and employees are becoming more selective, favouring businesses that “walk the talk” on sustainability. Martin Fryer, Head of Strategy and Disclosures at thinkstep-anz, highlights this trend: “Consumers, employees, and investors will increasingly vote with their feet and wallets.”

For manufacturers, this means embedding stakeholder needs into your strategy and communicating your progress clearly. Authenticity and accountability will help build trust and loyalty.

Your action: Conduct a stakeholder analysis to understand what matters most to your customers, employees, and investors. Use this information to guide your sustainability initiatives and reporting.

5. Prepare for regulatory and market shifts

Regulations around sustainability and climate-related financial disclosures are ramping up globally and locally. While political uncertainty may create short-term delays, the long-term trajectory is clear: businesses need to act now to meet future expectations.

Nicole Sullivan, Impact Director at thinkstep-anz, warns that 2025 may start with a sense of waiting but will end with an urgent need for action. “Get your house in order so that you can respond quickly to changing expectations when they arrive,” she advises.

Your action: Identify gaps in your current sustainability practices and address them proactively. Ensure you’re ready to meet new regulatory requirements and market demands as they arise.

6. Avoid greenwashing by focusing on credible claims

Greenwashing is under increasing scrutiny, with regulators, consumers, and stakeholders expecting businesses to back up their sustainability claims with evidence. “Misleading claims can erode trust and lead to reputational damage,” warns Senior Sustainability Communicator Jule Scherer.

To avoid these pitfalls, make sure that your sustainability initiatives are measurable and transparent. Clear communication about your progress, backed by robust data, will help you build credibility and stand out as a trusted manufacturer.

Your action: Review your marketing materials and sustainability claims to check that they’re backed by verifiable data. Use recognised frameworks and standards to guide your reporting and communication.

Looking ahead

For New Zealand manufacturers, 2025 is a year to embrace sustainability as a core part of your business strategy. By focusing on financial resilience, circularity, climate adaptation, transparency, regulatory readiness, and innovation, you can position your organisation for success in a rapidly changing world.

The challenges may be significant, but so are the opportunities. With proactive planning and a commitment to sustainability, your business can not only survive but thrive in the year ahead.

Photo by Nathan Maduta on Unsplash