Check out our predictions for 2025 🔮 👇
Don’t look away — NatureTech is taking off in 2025! At darwin, we believe the NatureTech market is poised for a transformative year. Despite early ESG setbacks like Trump’s election and debates around the CSRD, momentum is undeniable. Here’s how we predict the market will evolve in 2025—and why we’re excited 🔮 ➡️ Regulatory momentum: no turning back Pushback on the CSRD and EUDR may cause reporting delays or simplifications, but we believe these standards are here to stay. The requirements have been established, and many companies are already making significant progress. And there will be no delay in the need for companies to start addressing the task, particularly by tackling issues such as data gaps. Tools like darwin will play a key role in streamlining these efforts. ➡️ Market drivers rebalancing: reporting vs. risk Awareness Real-world events like wildfires in Los Angeles and flooding in Spain are bringing nature-related risks to the forefront, as these highlight the interplay between poor ecosystem management and amplified physical climate risks. Companies will need to move beyond compliance and integrate risk-based strategies, driving adoption of frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD). ➡️ Convergence of climate and biodiversity strategies The new IPBES Nexus Report highlights the deep links between biodiversity, climate, food systems, and human health. Expect biodiversity and climate strategies to merge into holistic environmental approaches. ➡️ Rise of niche ESG consultancies A long tail of specialized ESG consultancies is emerging focusing on specific environmental standards like ESRS E4 (biodiversity and ecosystems). This mirrors the evolution of the carbon market, where specific expertise became critical for navigating complexity. ➡️ Increased funding for the NatureTech vertical Large funding rounds, like the recent NatureMetrics’ $25M Series B, signal growing confidence in the sector. We expect more capital to flow into NatureTech and more startups to scale successfully. ➡️ Greater use of AI in biodiversity assessments Enhanced data availability (thanks to Earth Observation (EO) tech advancements or standardized frameworks like the CSRD) and maturing AI technologies will drive new capabilities for biodiversity analysis, modeling, and predictive tools. ➡️ Market polarization: ESG leaders vs. laggards The market is becoming increasingly polarized. On one side, progressive businesses and policymakers are pushing ESG advancements. On the other, skeptics risk creating further divides. Companies aligning with ESG goals will strengthen their position, while others fall behind. The road ahead is filled with challenges, but also great opportunities for innovation, collaboration, and impact. What’s your take on where the market is headed? Share your thoughts below! cc Antoine Vallier Cyprien Hallé Olivier Gonthier Walid CHERGUI