MSCI's Sustainability and Climate Trends to Watch for 2025 paper highlighted six trends which it believes will be key for the year ahead.

Specifically for North America US shareholders push for binding majority votes could drive greater board accountability and enhance transparency in decision-making, leading to stronger corporate oversight, according to MSCI.

Elsewhere, investors recognising the potential of private investments, which are poised to play a crucial role in financing and scaling clean energy projects and renewable infrastructure. Thirdly, investors integrating climate-related risks more deeply into their financial models and stress-testing their portfolios after extreme weather in 2024 underscored climate risk.

Fourthly, social risks, such as privacy breaches and human capital issues, will overshadow environmental concerns as companies that fail to address social risks may face reputational damage and diminished investor confidence.

Additionally, the ability to source high-quality, unbiased and ethically-sourced data will be critical in determining AI's long-term viability and impact on businesses.

Finally, carbon markets may be poised for a rebound, potentially making carbon credits an integral tool for corporate decarbonisation strategies.