Key Insights on Climate Action from London Climate Week 2025

London, UK – Over 45,000 participants convened at the London Climate Action Week (LCAW) 2025, marking the largest gathering in the event's seven-year history. This year's discussions brought together business leaders, investors, policymakers, and civil society representatives to explore strategies for navigating climate volatility and creating sustainable value. According to Andrew Angle, Research and Networks Manager at ERM, 'This week highlighted how businesses can turn challenges into opportunities amidst uncertainty.'

The week commenced with the launch of the World Business Council for Sustainable Development (WBCSD) Business Breakthrough Barometer, revealing that 91% of 300 leading global businesses have either maintained or increased their investments in clean energy and the net-zero transition over the past year. This suggests a significant commitment to sustainability, with 56% of these companies citing competitiveness as the key driver behind their investments.

### Navigating Volatility With global economic uncertainty at the forefront, companies are urged to develop strategic action plans to remain on course. The ERM-convened Council on Sustainability Transformation released a report advocating for robust sustainability frameworks that quantify the 'do nothing' option alongside other investment cases. 'The cost of inaction is rising, and companies must take actionable steps towards their climate goals while simultaneously generating business value,' stated Sabine Hoefnagel, Global Leader of Sustainability and Risk at ERM.

### Geographic Adaptation A one-size-fits-all approach to sustainability practices is no longer viable. Businesses must tailor their strategies to align with local contexts, recognizing that the energy transition's impacts will vary by region. 'Job creation, local economic empowerment, and community engagement are critical components of a successful transition,' emphasized Mark Lee, Global Director of Thought Leadership at ERM. Workshops highlighted the importance of addressing both direct and indirect risks associated with site-specific operations.

### Detailing Value Creation Ana Toni, CEO of COP30, urged businesses to delve into the specifics of their climate strategies, stating, 'Identifying precise requirements for achieving climate goals can unlock cooperation from policymakers and investors.' ERM sessions during the LCAW focused on sectors such as industrial heat electrification and climate markets, showcasing the crucial link between sustainability initiatives and enterprise value. However, participants noted challenges in data consistency and availability, which complicate effective quantification.

### Owning Your Narrative In today’s climate landscape, defining a clear narrative around sustainability efforts is paramount. Stakeholders expect transparency and tangible outcomes. 'If you don’t tell your story, someone else will,' Hoefnagel remarked, underscoring the need for cohesive communication strategies that resonate with diverse audiences. This narrative should reflect meaningful outcomes rather than just metrics, fostering trust and credibility among investors and the public.

### Embracing Opportunities Despite facing numerous challenges, businesses are identifying new opportunities for creating value and building momentum for sustainability. In Asia, for instance, companies are innovating in response to market needs, while discussions on energy storage technologies revealed their potential for significant financial returns and decarbonization. Participants expressed optimism about the future of carbon markets, urging stakeholders to stimulate demand while addressing concerns related to greenwashing and the need for clearer standards.

### Conclusion As the world confronts unprecedented climate challenges, the insights shared during LCAW 2025 illuminate pathways for businesses to navigate volatility and drive sustainable value creation. The emphasis on adaptation, detailed planning, narrative ownership, and opportunity recognition serves as a roadmap for companies aiming to thrive in an evolving landscape. As Angle stated, 'The biggest LCAW ever has shown us what’s possible when we combine ambition with action.'

The conversations and strategies developed during this pivotal event will undoubtedly shape the future of sustainability in business, fostering resilience and innovation in the face of climate change.