Locus Technologies’ 2025 Predictions
Looking ahead to 2025, a range of transformative trends are expected to shape the landscape of EHS compliance and sustainability. From the growth of artificial intelligence to the recent headlines about more chemicals in our drinking water, the next few years promise to bring both challenges and opportunities – and a lot of them.
We asked our in-house experts to weigh in on the forces they expect to have the biggest impact in our market. This article summarizes the contributions from 8 experts in different environmental disciplines: Dorian Bailey, Nancy-Jeanne LeFevre, Jen Grippa, Chris De Cree, Steve Paff, Mark Harbin, Todd Pierce, and Neno Duplan. While each person limited their input to their own area of expertise, there were 3 recurring themes across almost all predictions: the importance of water, data integrity, and tracking.
- Water quality, usage, and recycling will take center stage in climate discussions. In 2025, water will become a focal point in the climate change conversation, overshadowing GHG emissions, which have traditionally been the primary topic. While GHGs are mainly a byproduct of fossil fuel energy consumption, a significant portion of that energy is devoted to water management, including movement, treatment, desalinization, and cleaning polluted water. This shift will emphasize the interconnectedness of energy use and water conservation, pushing stakeholders to adopt more sustainable water practices as part of their climate strategies.
- There will be enhanced climate regulation and accountability in the US. Contrary to expectations of a US shift away from climate change regulations, many Locus experts expect to see an increase in regulatory pressure in 2025. While the US may continue drilling activities to boost energy independence, this will place an even heavier compliance burden on companies involved in drilling. These companies are already governed by stringent regulations like the Clean Water Act and the Clean Air Act, and enforcement of these laws is expected to intensify. This increased drilling activity will result in more data collection, more reporting obligations, and heightened scrutiny from regulators and the public alike. The outcome will be a demand for hard, verifiable data to demonstrate the environmental impacts and to support the growing evidence of human-driven climate change. The push for compliance and transparency will strengthen regulatory frameworks, emphasizing the need for companies to provide scientifically backed data to avoid reputational and legal repercussions.
- The previous two points converge for the third prediction. The US EPA’s new requirements pertaining to PFAS will prompt companies to update or optimize their methods for tracking and reporting water data. In 2024, the US EPA promulgated new requirements and is proposing further regulations on the management, release, and remediation of per- and polyfluoroalkyl substances (PFAS). The new requirements relate to multiple existing regulations. They proposed adding 16 individually listed per- and polyfluoroalkyl substances (PFAS) and 15 PFAS categories to the Toxics Release Inventory (TRI) list of toxic chemicals subject to reporting under the Emergency Planning and Community Right-to-Know Act (EPCRA). Additionally, pursuant to CERCLA, the US EPA is designating two per- and polyfluoroalkyl substances (PFAS)—perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS), including their salts and structural isomers—as hazardous substances.” Also in 2024, the US EPA issued its “Interim Guidance on the Destruction and Disposal of Perfluoroalkyl and Polyfluoroalkyl Substances and Materials Containing Perfluoroalkyl and Polyfluoroalkyl Substances— Version 2 (2024)” and released three methods to better measure PFAS in the environment. And the first-ever national, legally enforceable drinking water standard to protect communities from exposure to harmful PFAS was issued. These forces will place additional burdens on organizations needing to accurately track and report.
- Companies will face increasing pressure to reduce the use and cost of refrigerants. Twelve months from now, most commercial cooling appliances will be subject to regulation. Any unit with 15 lbs. or more of charge from virtually any refrigerant with a GWP above 53 will require extensive tracking, recordkeeping, and reporting. At the same time, facility owners will face increasing costs from equipment and labor. HFC refrigerant prices will increase, and many organizations will prioritize new equipment purchases to transition to less costly refrigerants and to detect leaks sooner. Additionally, labor costs will likely increase as facilities ensure the workforce is trained on the latest regulations and flammable refrigerants. These forces will drive more focus on refrigerant usage, disposal, and inventory tracking, as well as greater emphasis on reclamation (purified and lab tested/certified) for reuse in existing equipment and specified percentages in some new equipment.
- The formulation of concrete will markedly change in 2025 and beyond. Portland Cement content will be reduced over continued global concerns regarding environmental pollution and carbon emissions. These emissions have severe and irreversible impacts on the environment. Optimizing site-specific, custom-designed mixes of low-carbon concrete can effectively reduce embodied carbon dioxide. To track the performance of specialty concrete with reduced CO2 emissions, engineers will rely on integrated data sources for both durability and environmental impact.
- The EU’s Corporate Sustainability Reporting Directive (CSRD) will prompt more companies to invest in ESG software that includes advanced data management. Governments and international bodies will implement stricter regulations mandating comprehensive ESG disclosures, moving beyond voluntary frameworks. More US companies will seek to understand their obligations to CSRD and will adopt advanced data management solutions that will help them confidently meet new compliance standards for both mandatory and voluntary frameworks. In 2025, the emphasis in ESG reporting will shift from sheer data volume to the quality and integrity of the reported data. This change is a response to the prevalence of greenwashing and the dissemination of unreliable data within climate discussions. The EU’s CSRD has already taken significant steps to address data reliability, and other regions are expected to follow suit. This focus on data quality will challenge software companies that rely on web scraping to rate ESG performance, as much of the data they collect lacks scientific validation. Companies will face greater pressure to ensure that reported figures are scientifically backed and verifiable, moving away from speculative, forward-looking statements. This will create a higher standard for ESG reporting, requiring robust data validation and greater transparency to build trust and credibility.
- Increased focus on the ‘S’ in ESG. Attention to social responsibility will surge as organizations face pressure to demonstrate their commitment to equality, diversity, and community impact. Issues such as pay equity, labor practices, and community engagement will become key metrics for stakeholders, prompting companies to adopt innovative strategies to show meaningful progress in their social impact.
- AI and data analytics will become a game changer in ESG reporting. Companies will rely on AI-driven tools to automate data collection, perform predictive analysis, and ensure more accurate and consistent reporting. This will enhance decision-making, allowing organizations to identify ESG risks and opportunities in real-time and respond swiftly. AI will also enable the limited pool of accredited GHG and clean fuels verifiers to support more companies. Technology can automate the resolution of the most common errors so that verifiers can focus on more substantive ESG guidance and reporting.
- Sustainable finance will take a front seat. The role of sustainable finance will be pivotal as investors and financial institutions prioritize funding for projects and companies with strong ESG credentials. Green bonds, sustainability-linked loans, and other innovative financial products will be at the forefront, driving capital toward businesses that lead in sustainability efforts. This trend will also bring increased scrutiny to “greenwashing,” necessitating more transparent and credible sustainability commitments.
- Data integrity and credibility will be a priority for individuals and enterprises. As generative AI becomes more pervasive, and as people increasingly get news and information solely from sources that match their political views, the influence of biased and potentially inaccurate information will grow. As a result of the lack of balanced (and genuine) sources, some people will become skeptical of any media source and will demand access to raw data so they can make their own decisions. But most people won’t have skills or software to mine and analyze the data, leading to the rise of web sites and applications that provide non-biased tools for turning raw data into information and understanding. Locus provides objective analysis tools such as GIS, visualization, AI, and forecasting, and our software is already used to share credible environmental data with the public.
In 2025, tech companies that absorb these predictions into their strategies will not only meet growing regulatory and stakeholder expectations but also position themselves as leaders in sustainability, ready to turn ambition into tangible action.