The global landscape continues to evolve rapidly, presenting both challenges and opportunities for businesses across the world. With elections in the UK, US and across the EU wrapped up in 2024, we will soon see how the new policy and regulatory landscape will unfold.

Emerging technologies, particularly the rapid advancements in artificial intelligence (AI), will continue to play a crucial role in shaping business operations and strategies. This evolution will have tangible impact on the energy transition and introduces new considerations for policymakers. The focus has shifted significantly from questioning the necessity of AI in businesses to determining the right strategy for its implementation and avoiding litigation risk. 

In the UK, the policy landscape is undergoing significant transformation. The highly anticipated Employment Rights Bill has been described by the Prime Minister as “the biggest upgrade to workers’ rights in a generation”. We also expect a material impact on certain UK businesses as a result of employer National Insurance Contributions increases, set out in the Autumn Budget. Businesses across the UK have warned about the “harmful effect” this could have on wider society, from job losses to business closures especially in high employment, low margin sectors.

Nevertheless, there are many reasons for optimism as we look ahead to 2025. Likely regulatory easing in the US and falling inflation and declining debt costs are expected to stimulate M&A transactions. It remains to be seen whether the reforms to the UK and EU listing regimes will improve capital markets conditions in those jurisdictions. We also expect to see a strong return of private equity deal-making and commercial consolidation and investment in funds.

Businesses will need to intensify their sustainability efforts to meet increasing obligations and consumer expectations. Responsible practices can also be an opportunity to drive innovation and growth, with companies adopting decarbonisation technologies and more transparent reporting mechanisms. A just transition will remain a priority for many, with new policies and incentives to help countries reach ambitious net zero targets and promote a more circular economy. Meanwhile greenwashing and other ESG-related litigation will continue to increase.

We hope that you find our 2025 Horizon Scanning programme a helpful resource as you set your agendas and strategies for the year. Gathering insights from across all areas of the firm, the programme aims to support your decision-making and help you navigate complex risks and valuable opportunities on the horizon. Please do not hesitate to reach out to us if you would like to discuss any of the issues we cover within the publication.