As global climate policies evolve and financial markets tighten their scrutiny on sustainability, New Zealand exporters are facing increasing pressure to demonstrate environmental responsibility.
According to Toitū Envirocare’s 2025 Climate & Business Trends statement, businesses that proactively address sustainability challenges will gain a competitive edge in global markets.
Despite regulatory delays and policy shifts in the US and EU, climate regulations are far from disappearing. Toitū Envirocare highlights that these adjustments create a crucial window for businesses to act.
“Delays in policy changes may feel like a retreat, but they aren’t going away. If anything, they give businesses a short window to get ahead and do things properly – without reducing transparency or accountability,” says Dr. Belinda Mathers, Chief Science & Advisory Officer at Toitū Envirocare.
With heightened scrutiny on sustainability claims, some businesses are opting for silence to avoid accusations of greenwashing. However, this approach carries its own risks.
“Many businesses aren’t stopping their sustainability work; they’re just not talking about it as much. They’re worried about missing targets or drawing political attention, but transparency remains key,” says Mathers.
Companies that credibly communicate their sustainability efforts can build trust and stand out in the market.
Banks and insurers are increasingly factoring climate risks into their decisions, pulling back from fossil fuel investments and withdrawing coverage from climate-vulnerable areas.
“We’re seeing banks considering whether to stop investing in fossil fuel projects they see as becoming stranded assets. Insurance companies are also stepping back from high-risk climate areas- some regions can no longer get coverage at all,” Mathers says.
Businesses that align with these shifts will gain better access to capital and mitigate financial risks.
While carbon credits remain an important tool for reaching net-zero goals, businesses must ensure they invest in high-integrity solutions.
“High-integrity carbon credits are essential for reaching net zero. The focus shouldn’t be on rejecting offsets, but on ensuring they deliver real, measurable impact,” says Mathers.
Companies investing in verified climate solutions will be better positioned to meet compliance requirements and demonstrate credibility.
With the Ministry of Business, Innovation and Employment (MBIE) estimating that New Zealand’s natural gas supply will run out within eight years, businesses must prepare for a major shift in energy sourcing.
“Energy is one of the clearest examples of climate action becoming a business continuity issue. The transition away from fossil fuels isn’t just about emissions – it’s about ensuring long-term energy security, cost stability, and risk management,” Mathers explains.
Those who act early will have a strategic advantage in securing cost-effective, reliable energy sources.
New Zealand exporters must now meet increasingly stringent environmental standards in key markets to maintain access. Sustainability compliance is quickly shifting from a preference to a requirement.
“We’re seeing more pressure on exporters to meet stringent sustainability criteria – not just from regulators, but from buyers across global markets. Supply chain emissions and environmental sustainability reporting are fast becoming essential for market access,” Mathers warns.
Leading exporters are already leveraging sustainability credentials to gain overseas traction.
The growing emphasis on Scope 3 emissions – those generated within a company’s supply chain – means exporters must work closely with suppliers to track and reduce their carbon footprint.
“Scope 3 emissions are becoming more important in corporate reporting. Large companies are already demanding more data from their suppliers, and this will only accelerate. Businesses that engage their suppliers and take ownership of their full emissions footprint will gain a competitive edge,” says Mathers.
Global corporations like Nestlé and Salesforce are already requiring emissions reductions from their suppliers, reinforcing the urgency for New Zealand exporters to align with these expectations.
Taking action in 2025
Toitū Envirocare is urging businesses to use 2025 as a year of action. By integrating sustainability into their strategies, exporters can create operational efficiencies, secure market access, and mitigate financial risks.
“These shifts are happening now, and businesses that embrace them will define success in the coming decade,” says Mathers.
The insights were shared during a recent webinar featuring Dr. Belinda Mathers, Chief Science & Advisory Officer at Toitū Envirocare; Sean Weaver, Founder & CEO of Ekos; and Jeff Smit, Director of DETA Consulting Australia.
For New Zealand exporters, the message is clear: Sustainability is no longer an option – it’s an expectation, and those who act decisively will be best positioned for success.
