By Barbara Nebel, CEO, thinkstep-anz

In 2025 we saw something important: progress on sustainability continued, even as regulations shifted and economic conditions became challenging.

For many organisations, sustainability has become central to resilience, competitiveness and long-term planning. Rather than slowing down, they took more confident steps to manage risk and prepare for the future.

Climate disclosure: fewer rules, but the same risks

One of the major changes this year was the government’s plan to reduce the number of businesses that need to report their climate-related risks and opportunities. This shift removes the pressure of mandatory disclose and allows businesses to take a more pragmatic approach.

It also raised a fair question: if fewer organisations need to disclose, does that mean the financial impacts of a changing climate are becoming less relevant?

At thinkstep-anz, we know the answer is no. Climate disclosure has always been more than a compliance task. For manufacturers and other businesses with complex supply chains, it is a practical tool for managing risk.

Regulations may shift, but the physical and transition risks of climate change remain. Extreme weather, changing markets and new policies will continue to affect operations, logistics and access to materials.

That is why we integrate climate risk and scenario analysis directly into clients’ risk management frameworks. When climate insights sit within existing decision-making processes, they guide investment, planning and strategic direction.

After two years of supporting organisations on their disclosure journeys, we are seeing a clear shift: clients are not just reporting; they are preparing for the future with greater clarity and confidence.

Scope 3 emissions: more time, better tools

Changing regulations also brought more time for some organisations to measure and report their scope 3 supply chain emissions.

For many, scope 3 includes the upstream materials they purchase and the downstream use of their products. It often makes up the largest share of a manufacturer’s footprint, yet it is the hardest to measure.

To support this, thinkstep-anz released an updated and audited set of spend-based emission factors for New Zealand. By linking emissions to dollars spent in different sectors, they allow organisations to start measuring their footprint using the financial data they already have.

Spend-based emission factors are built on a simple idea: every dollar you spend has an average carbon footprint. Instead of asking suppliers to track every litre of fuel or tonne of material from day one, organisations can start by analysing their spending.

Multiply the spend by the relevant factor and you have an initial estimate of emissions.

Spend-based factors provide a reliable starting point and can be replaced with more accurate activity-based data as it becomes available.

Avoiding greenwashing: choosing credible certifications

Another strong theme this year has been growing awareness of greenwashing. Certifications now appear on everything from packaging to clothing, but not all are equal.

For manufacturing businesses in particular, choosing credible certification is essential. Get it right and your brand earns trust and business value. Get it wrong and you risk compliance issues or public criticism.

To help organisations navigate this, our team developed a guide outlining ten key things to look for when assessing certification credibility – from the strength of the methodology to the independence of the verifier.

Growing action on circular economy

Circular economy gained strong momentum in 2025, supported by the new ISO 59000 series, which provides clear guidance on transforming business models and avoiding greenwashing. As sustainability becomes a central focus in global markets, these standards will help manufacturers stay competitive, reduce waste and align with global expectations. But circularity is about far more than cutting waste. It is increasingly a strategy for economic resilience.

Circular approaches can reduce reliance on volatile global supply chains, protect against resource scarcity and price spikes, strengthen local economies and lower the need for imported materials. They also extend the life of local products and create new jobs in repair, remanufacturing and materials recovery.

For manufacturers facing material shortages, high input costs and ongoing uncertainty, circular strategies are becoming essential tools for building stability and long-term value.

At thinkstep-anz, we offer modular circular economy services that help organisations use resources more efficiently and build more resilient operations, wherever they are on their journey.

Sustainability is now essential for resilience

Across 2025 one message became clear: sustainability is no longer optional. It is essential for managing business risk, staying competitive and planning with confidence. Organisations that invest in understanding their emissions, assessing climate risks and adopting circular practices are building stronger, more future-ready operations.

Ready to take the next step?

If you want to strengthen your business, reduce risk and prepare for 2026 with confidence, get in touch with me at engage@thinkstep-anz.com.