Tech industry to maintain ESG focus in 2025 despite regional disparities

Despite varying priorities across geographies, the broader industry trajectory will continue to favor sustainability.

The tech industry will continue prioritising Environmental, Social, and Governance (ESG) initiatives in 2025, but adoption will remain fragmented across regions and company cultures, according to GlobalData.

According to GlobalData, the recent US presidential election will introduce short-term resistance to ESG policies, particularly in deregulated markets.

However, despite varying priorities across geographies, the broader industry trajectory will continue to favor sustainability.

Enterprises are adopting a long-term strategic approach to ESG, recognising that market expectations, customer demands, and regulatory pressures will sustain the focus on environmental and social responsibility.

GlobalData highlighted the evolving role of artificial intelligence (AI) in ESG, noting that whilst AI increases energy consumption, it is also driving efficiency gains.

The latest generation of network equipment is reported to be up to 90% more energy efficient than legacy systems, showcasing how technological advancements are mitigating environmental impact.

A key trend shaping ESG in 2025 is the increasing alignment between sustainability initiatives and financial reporting. GlobalData reported companies are viewing ESG as more than just a compliance requirement, with many recognising its direct impact on cost savings and productivity.

Another major development in the ESG landscape is its growing influence among small and medium-sized businesses (SMBs).

According to GlobalData, rising customer demand and the changing priorities of technology service providers are extending ESG considerations beyond large enterprises.

As SMBs become a focal point for tech providers, sustainability is emerging as a key factor in their economic and commercial growth strategies.

Whilst some businesses may take advantage of short-term policy shifts to slow their ESG commitments, GlobalData asserted that the long-term direction of the industry remains clear.

Regulatory frameworks, consumer expectations, and financial incentives will continue to drive sustainability initiatives forward, ensuring that ESG remains a central strategic focus for tech companies in 2025 and beyond.