Reflections from Davos 2025: Clarity and Collaboration Remain Key to Climate Action  

Davos 2025 kicked off amid a period of political change, as the forum coincided with Donald Trump’s second inauguration as President of the United States. This marked a significant shift in the global political landscape, adding complexity to discussions that the World Economic Forum (WEF) may have earmarked as an opportunity to tackle some environmental challenges, considering their most recent report had aimed to place environmental issues at the forefront of the global agenda.  

The banking sector was also grappling with its own set of challenges at the start of 2025, with a notable uptick in volatility. In the weeks leading up to the forum, several major banks made headlines by withdrawing from the Net Zero Banking Alliance (NZBA), signalling a shift from public-facing commitments to practical action.  

Against this backdrop of change, B4NZ’s conversations focussed on the role of clear and consistent policies in enabling businesses, especially SMEs, to navigate the net zero transition, as well as the need to unlock capital flows to emerging markets. Collaboration and innovation will be essential tools in tackling these challenges. 

Driving SME Sustainability Reporting 

A key issue raised by B4NZ was the challenge SMEs face in meeting complex, top-down regulatory reporting requirements cascading through the system. Leaders and stakeholders recognised the need for a proportionate and interoperable framework to make reporting more accessible.  

To this end, B4NZ has convened the SME Data Taskforce to establish a simplified, universal framework for climate reporting. This framework will be underpinned by both the needs of data consumers—such as banks and major corporates with supply chains—and the data available to SMEs. By streamlining data requests and setting a minimum standard, we’ll reduce the burden on SMEs, improve data quality, and help businesses navigate this complex landscape.
Unlocking Green Investment in Emerging Markets
Emerging markets also face significant barriers to accessing the finance required for a sustainable transition. Discussions the B4NZ team had at Davos explored the systemic challenges limiting capital flows to these regions and highlighted the need for innovative financing solutions to close the gaps and UN Secretary General Antonio Guterres used his speech to argue that “We need to tackle high-capital costs that are leaving developing countries behind”. By addressing these obstacles, stakeholders could catalyse green investment in areas that are critical for global progress.  

Key Takeaways from Davos 2025 

  • Action on Sustainability: The focus has shifted from lofty commitments to tangible implementation. Organisations are now focussing on high-impact projects and partnerships that drive innovation, mobilise capital, and cut costs. 
  • AI and Energy Demand: The increasing reliance on AI and the importance of building secure, decentralised, and regenerative energy systems to meet demand sustainably were a key topic of conversation at events during the week. Emphasis was placed on the potential AI has to help with climate change, for example, by tracking emissions more accurately than ever before. 
  • UK’s Pro-Growth Agenda: Chancellor Rachel Reeves MP and Business Secretary Jonathan Reynolds MP emphasised that economic growth was their priority. The sustainable development of small businesses, aided by simplified emissions reporting processes, can underpin this growth. 
  • Leadership and Collaboration: From political leaders advocating for inclusion to philanthropists driving green initiatives, collaboration and strong leadership remain fundamental to achieving the scale of change required. 

 

B4NZ Highlight: JP Morgan Reception 

Our team’s highlight of the week was attending the JP Morgan evening reception, where they spoke with, among others, JP Morgan’s Jamie Dimon & Chuka Umunna, LSEGs David Schwimmer, Chancellor Rachel Reeves MP and former British PM Tony Blair. The evening provided an excellent opportunity to engage with industry leaders, share some details about our ongoing work and round off a productive week in a wonderful setting. 

Davos 2025 demonstrated that the next decade will be shaped by how businesses, governments, and organisations respond to the challenges at the intersection of climate action, policy certainty, and collaboration. Progress will require bold thinking, decisive leadership, and collective action on a global scale.