2025 Key ESG Issues Through Global Trends: Insights from COP29, CES 2025, and WEF 2025

The Changing Landscape of ESG Management

ESG, which stands for Environmental, Social, and Governance, refers to a business strategy that emphasizes sustainability, corporate social responsibility, and ethical governance. Over the past decade, ESG management has gained global attention, particularly as environmental crises and diversity advocacy have become more prominent. Since the late 2010s, investors have increasingly used ESG as a benchmark for assessing corporate sustainability.

However, since 2022, a series of economic challenges—including a global downturn, supply chain instability from the Russia-Ukraine war, and a rise in corporate bankruptcies—have pushed companies to prioritize survival. In Europe, opposition to carbon neutrality policies has intensified, leading to large-scale protests. In the U.S., anti-ESG sentiment has grown, resulting in 271 anti-ESG bills being introduced and 35 enacted into law between 2022 and 2023. Against this backdrop, ESG-related investments have also declined. According to the Global Sustainable Investment Alliance (GSIA), ESG investments, which grew from $13.3 trillion in 2012 to $35.3 trillion in 2020, dropped to $30.3 trillion in 2022—a $5 trillion decrease.

Even BlackRock, a global investment giant known for advocating ESG management, has shifted its stance. In 2023, CEO Larry Fink stated that the term ESG had become politically contentious and announced that the firm would no longer use it. With continued economic uncertainty and the outcome of the U.S. presidential election, the debate over the future of ESG is expected to intensify.

Key ESG Issues Emerging from Major Global Trends

Given the evolving landscape of ESG management, it is crucial to examine the key ESG-related discussions emerging from recent major global conferences and exhibitions. With businesses needing to prioritize and focus within the broad spectrum of ESG, it is essential to examine which topics are gaining prominence and how key stakeholders are responding.
This report highlights the key ESG themes from three major global events held between late 2024 and early February 2025. These three events represent some of the most authoritative global forums in the past three months, offering critical perspectives on ESG developments.

The first event is the 29th United Nations Climate Change Conference (COP29), held from November 11 to 24, 2024, in Baku, Azerbaijan. COP (Conference of the Parties) is an intergovernmental meeting based on the 1992 United Nations Framework Convention on Climate Change (UNFCCC), bringing together nearly every country in the world to discuss climate action. Notably, COP21 in 2015 led to the Paris Agreement, which set a goal of limiting global warming to 1.5°C—serving as a catalyst for the rise of ESG-focused business strategies. The agreements made at COP29 will significantly shape not only national policies but also corporate climate action plans, making it a crucial event to analyze.

The second key event is CES 2025, held from January 7 to 10 in Las Vegas, USA. CES is one of the most influential gatherings in the global tech industry, shaping future technological trends while addressing pressing global challenges. Beyond unveiling cutting-edge innovations, CES plays a pivotal role in presenting a vision for sustainable technology and its role in solving societal and environmental issues.

The final event is the World Economic Forum (WEF) 2025, held in Davos, Switzerland, from January 20 to 24. As a leading platform for high-level discussions on economic, political, and social issues, WEF plays a critical role in setting the global ESG agenda.

While each event had its own distinct focus, four key ESG issues emerged as common theme.

The first is the emphasis on energy transition. Discussions focused on the energy equity challenges triggered by the Russia-Ukraine war and the need for climate action, highlighting the importance of a diverse energy mix and the expansion of renewable energy.

The second is addressing challenges through technological innovation. There was a shared understanding that technological advancements are essential for designing a more environmentally friendly future. Topics included improving energy efficiency through digital technology and bridging the digital divide.

The third is expanding private-sector participation in climate action. To advance climate change mitigation^* and adaptation^**, not only public funding but also private investment must be actively expanded. While the focus has traditionally been on the contributions of developed countries, there is now a growing emphasis on the roles of multilateral development banks and private enterprises.
*Mitigation: Actions to reduce future climate change **Adaptation: Efforts to minimize the impact and damage of current or anticipated climate changen

The final issue is addressing the challenges arising from the rise of AI. While AI adoption enhances convenience, it also leads to soaring power demand, widening digital inequality, and ethical concerns. There is a growing need to recognize these issues and develop appropriate solutions.

Key Discussions at COP29

The 29th UN Climate Change Conference (COP29) was held in Baku, Azerbaijan, in November 2024, bringing together approximately 60,000 participants from 198 countries. The conference achieved its key objectives, including securing new climate finance mechanisms and advancing the implementation of the Paris Agreement. COP29 was particularly recognized as a “Finance COP” due to significant progress in climate finance discussions and the successful finalization of Article 6 of the Paris Agreement, which regulates international carbon markets. Additionally, 14 new climate action initiatives were launched, including The Climate Finance Action Fund and the Declaration on Green Digital Action.

Energy Transition

Building on discussions from COP28, COP29 reaffirmed the urgent need to transition away from fossil fuels. The conference highlighted the importance of diverse low- and zero-carbon energy sources, including renewables, nuclear power, CCUS^* (Carbon Capture, Utilization, and Storage), and low-carbon hydrogen. Participating countries agreed to triple renewable energy capacity and double energy efficiency improvements by 2030. There was also a proposal to establish an annual review mechanism to assess national progress in renewable energy adoption, emphasizing the need for a structured and continuous transition.
*CCUS: A method of capturing CO2 emissions from industrial processes and either storing or utilizing them instead of releasing them into the atmosphere.

Technology-Driven Solutions

COP29 highlighted technology-driven climate action, notably with the first-ever “Digitalization Day” event. The “Green Digital Action^*” initiative, which participated in the event, issued a declaration emphasizing global cooperation in climate response through digital technologies. In particular, digital tools such as climate monitoring and early warning systems were recognized for their effectiveness in mitigating climate-related damages. Additionally, AI and big data were acknowledged for their role in enhancing energy efficiency and reducing carbon emissions.
*Green Digital Action: A multilateral initiative led by the International Telecommunication Union (ITU).

Emphasis on the Role of the Private Sector

COP29 focused heavily on climate finance, to the extent that it was dubbed the “Finance COP.” Participants agreed to mobilize more than $1.3 trillion annually from 2026 to 2035, with $300 billion to be led by developed countries. However, while the pledge amount increased from the previous $100 billion target for 2025, the language shifted from a firm “commitment” to a softer stance of “taking the lead.” This shift in responsibility has spurred efforts to expand the role of multilateral development banks, including the World Bank and the Asian Development Bank, as well as to encourage greater private sector involvement. As a result, the private sector is expected to play a growing role in future climate finance initiatives.

The Rise of AI Technology

At COP29, growing concerns emerged over the soaring power demand from data centers driven by the rapid expansion of AI. The increasing adoption of AI and cloud computing is significantly straining the electricity supply, while the growth of renewable energy fails to keep up. Reports indicate that some data center operators have signed power contracts with nuclear energy providers but have faced delays in receiving electricity. In the U.S., such energy constraints have led to postponed closures of fossil fuel power plants, while in Europe, initial plans to fully transition data centers to low-carbon energy by 2030 are now being reconsidered, with potential extensions for fossil fuel use. At COP29, there were extensive discussions on the challenges posed by the growing adoption of AI, including surging power demand and delays in the energy transition, as well as potential solutions.
Additionally, COP29 finalized the details of Article 6 of the Paris Agreement, establishing a legal and institutional framework for international carbon credit trading after nine years of stalled negotiations.

Key ESG Discussions at CES 2025

CES 2025, held in early January, explored major technology trends under five key themes: AI, sustainability, digital health, quantum computing, and mobility, with a focus on addressing global challenges.

Energy Transition

Energy transition emerged as a significant topic at CES, the world’s largest tech trade show. This year, a dedicated “Energy Transition” exhibition program was introduced, featuring innovations in solar and wind energy as well as IoT-powered smart home devices designed for maximum energy efficiency. The program showcased practical approaches to energy transition and demonstrated how renewable energy can become a primary power source for households and communities.

Technology-Driven Solutions

With the rapid expansion of AI, the surge in electricity demand has become a critical issue, emphasizing the need for greater energy efficiency. Discussions highlighted the importance of power efficiency in data centers, particularly performance per watt, alongside advancements in energy optimization technologies. Reflecting this trend, the CES Innovation Award in the sustainability category went to Netsoon.AI’s “Datagreen,” an eco-friendly data center from France. The company was recognized for its high-efficiency cooling solutions, which address both power demand and sustainability challenges.

Emphasis on the Role of Private Sector

This year’s CES showcased a variety of green tech solutions aimed at addressing the climate crisis. By presenting technologies related to energy storage, optimization for improved efficiency, and solutions for transitioning to renewable energy, the event highlighted the potential of private sector innovation in providing solutions to combat the climate crisis.

The Rise of AI Technology

AI technology made a significant impact at CES 2025, with a 50% increase in AI-related products compared to the previous year. Alongside this growth, the event also focused on the ethical issues triggered by AI advancements, such as copyright violations and deepfake content. For instance, new watermarking solutions and technologies aimed at preventing personal rights violations caused by AI-generated deepfake content were shared. CES 2025 confirmed that while AI is driving innovation across various fields, sustainability cannot be guaranteed without addressing the ethical issues surrounding its use.

Key ESG Discussions at WEF 2025

The World Economic Forum (WEF) held in Davos, Switzerland in January 2025, was themed "Collaboration for the Intelligent Age" and consisted of five sections: rebuilding trust, reimagining growth, investing in people, safeguarding the planet, and industries in the intelligent age.

Energy Transition

This year, the WEF had discussions on how to alleviate the energy trilemma: energy security, sustainability, and affordability, and achieve a transition to renewable energy. Fatih Birol, the Executive Director of the International Energy Agency (IEA), announced major accomplishments at WEF 2025, including investment in renewable energy technology reached $2 trillion in 2024, twice the amount invested in coal, gas, and oil, and the cost of battery storage decreased by 20%. However, he pointed out that the sub-Saharan regions produced less solar energy than the Netherlands despite Africa having 60% of the world's best solar resources, and that energy investment is concentrated in advanced countries and China, accounting for about 85%. He highlighted energy investment should be distributed fairly to regions such as Africa in order to solve the energy trilemma and achieve energy transition.

Technology-Driven Solutions

WEF 2025 suggested solutions to global challenges based on technological innovation, such as talent re-training and recruitment using technologies. In particular, it proposed strategies to provide workers and students with new skills needed through combination of AI and EdTech, given that about 39% of core skills are expected to change by 2030. It also came up with chances to encourage workers in developing countries to participate in the global economy by promoting work from home and platform economies using digital technologies. Furthermore, it stressed the significance of expanding digital infrastructure in developing countries based on digital innovation in order to improve digital accessibility.

Emphasis on the Role of Private Sector

WEF 2025 emphasized the importance of private sector capital in making stable, economic, and sustainable transitions toward cleaner energy sources. The argument has been consistently raised that public funding alone may not be sufficient to transition toward renewable energy. Therefore, there is an urgent need for financial support from the private sector.

The Rise of AI Technology

WEF 2025 pointed out that the sharp increase in electricity demand was attributable to the rapid development of artificial intelligence (AI). They predicted that power consumption would surge as new large language models are developed, raising concerns that electricity usage could double from its current level by 2026. However, proponents argue that advances in AI technology can be used for optimization of AI-based energy use, which could accelerate the shift towards renewables. Thus, they highlighted the necessity of strategically coordinating opportunities and challenges posed by AI expansion.

<Table> Major ESG Issues in Line with Global Trends

Implications for Businesses

Various topics were widely discussed at global conferences and exhibitions. Although detailed agendas greatly vary by the characteristic of each event, four major topics were highlighted regarding ESG: a transition to renewable energy, addressing challenges using technologies, active participation of the private sector, and solutions to challenges posed by AI.

In a situation where the survival of companies is one of the most important issues, choosing and focusing on what matters is essential. Based on the global discussions, companies need to focus on the following.

First, a stable supply of renewable energy. A reliable supply of renewable energy is one of the most critical tools for achieving carbon neutrality. The international community continues to highlight the importance of the energy transition despite calls for slowing down the pace of carbon neutrality. Therefore, companies should seek various ways to procure renewable energy in a stable manner, such as PPA, green premiums, and Renewable Energy Certificates (RECs) purchases. As for the third-party PPA, there may be difficulties in swiftly procuring renewable energy due to limited volume in Korea, so it is necessary to focus on securing sufficient volume through long-term planning.

Second, embedding ESG values into products or services. Recently, products and services that enable users to monitor and optimize energy consumption have gained significant attention. For instance, eco-friendly data centers that meet sustainability requirements won the 2025 CES Innovation Awards through power optimization and efficient cooling. It is also essential to consider features that improve energy efficiency and reduce carbon emissions. The World Economic Forum (WEF) 2025 highlighted the importance of re-educating workers through the convergence of AI and EdTech. Now is the time to focus on ESG management and address global challenges by integrating technologies with ESG values.

Third, managing legal and ethical risks when releasing AI-powered products or services. There is growing interest in addressing the side effects in line with the growing application of AI. Thus, a red team should closely verify whether the AI products or services infringe on personal information or copyrights, provide unethical information, or engage in illegal activities, and prevent such risks in advance.

Last, the importance of public-private cooperation and private funding in responding to climate change. Companies should contribute to climate change adaptation and mitigation by participating in remarkable global initiatives.

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