In 2025, we began to see a visible shift as sustainability and climate regulation entered a new phase defined less by aspiration and more by accountability. Governments worldwide faced mounting pressure to balance climate commitments with economic resilience, geopolitical uncertainty, and supply chain security. As a result, regulatory frameworks that once emphasized voluntary disclosures and long-term targets increasingly turned toward enforceable requirements, standardized reporting, and heightened oversight of corporate behavior. For global businesses, sustainability moved firmly into the realm of operational and financial risk management.
In Europe, 2025 marked a decisive move from legislative development to implementation. EU policies addressing deforestation, environmental due diligence, and corporate accountability began reshaping global supply chains, affecting not only European firms but also international companies seeking access to the EU market. Several member states reinforced these efforts by tightening national rules governing environmental claims, carbon neutrality assertions, and consumer-facing sustainability communications.
With renewed focus on regulatory requirements in Europe, SCS spent the year expanding our team in Europe to extend independent verification and certification services to companies subject to EU regulatory requirements. Under the leadership of Maggie Schwartz, long-time Vice President of SCS’ Natural Resources division who now serves as Acting Managing Director of SCS Europe, the growth in Europe-based certification and verification programs is overseen by Vanessa Ellis, Director, European Program Development, who has spent more than 15 years at SCS managing compliance for our global forestry programs. In addition, Gerard van der Ven, an expert in certification and quality assurance management within the food and agriculture industry, was hired to provide additional regulatory, accreditation, and certification scheme support to European companies.
SCS Europe brings together expertise in emissions verification, carbon border compliance, deforestation-free supply chain assurance, sustainable forestry and biomass certification, food and agriculture traceability, and product sustainability, thereby giving clients a single, accredited partner across the full spectrum of EU regulatory and voluntary certification demands. Our SCS Europe team has expertise in EUDR, EU ETS, CBAM, RED III, and ESPR, with more regulations under review, such as CSRD. We are seeking accreditation to verify several of these regulations through our home national accreditation body, Raad voor Accreditatie or RvA.
In a similar manner, SCS Global Services has served since 1995 as a strategic partner to organizations in Brazil seeking independent conformity assessment services across forestry, biomass supply chains, and climate-related projects. With the formal establishment of SCS Global Services Brasil Ltda under the direction of long-time SCS employee Eddie Gomez, we continue to strengthen our commitment to safeguarding natural resources and supporting the well-being of people across an extensive range of industries.
In the United States, 2025 was marked by sharp policy reversals and heightened uncertainty around climate and sustainability regulation. While some federal funding mechanisms and incentives authorized by prior legislation remained on the books, implementation was increasingly constrained. This resulted in more focus on state-based climate regulations led by California SB 253 and SB 261 and a move by other U.S. states to follow suit with their own versions of similar regulations. At the same time, state-level Extended Producer Responsibility (EPR) regulations gained momentum. By the end of 2025, seven states had full EPR regulations in place, with another 12 states moving such legislation through their various chambers. The impact of these regulations is significant, and SCS worked to provide clients with insights into the various regulations and compliance support.
Our particular climate-focused expertise in the manufacturing and packaging industries through certifications impacting both production and end products, including biofuels (ISCC Plus), recycled content (SCS Recycled Content and Textile Exchange Global Recycled Standard), and wood-based products (FSC and SFI) have ensured that clients doing business in the U.S. have access to certifications that can support their navigation of these new regulations.
Also in support of these regulatory changes, our sister organization SCS Standards and Assurance Systems has been leading the charge in creating new, third-party standards to support specific needs within the chemical industry, including the Certification Standard for Responsible Chemical Recycling (SCS-104) and Certification Standard for Product Carbon Intensity and Reduction for Chemicals and Co-products (SCS-115). These standards are driving significant changes in accountability and reporting for forward-thinking companies committed to preserving the planet.
To keep pace with growing global demand, we expanded our leadership midyear, promoting Scott Coye-Huhn from Vice President since 1995 of Energy, Biofuels and Circularity to Chief Operating Officer. Under Scott’s leadership, we have added a new Operational Excellence (OPX) team to support our rapid growth over the last year. In addition, Vikas Ahuja, former Vice President of Sales, was promoted to Senior Vice President of Revenue where he oversees the global sales and marketing organization within SCS. We also built out the leadership of our consulting arm, SCS Consulting Services, under the direction of newly appointed Senior Vice President, Nathan Smith.
These changes have enabled us to upgrade multiple service offerings and add new ones to meet the evolving regulatory paradigm, including expansion of our Low Carbon Transportation programs to include additional regional and global programs such as M-RETS, TERC, Green-e, Oregon Clean Fuels Program (CFP) and Canada’s Clean Fuel Standard (CFR), as well as support for organizations navigating the U.S. Inflation Reduction Act’s 45Z Clean Fuel Production Credit.
SCS Global Services expanded our portfolio of existing services in 2025. We were named as the exclusive assurance provider for medium and larger enterprises seeking B Corp Certification, approved as a certification body for 2BSvs biofuels certification, and approved as a verification body for Smart Freight Centre Conformity Assessment Scheme and 123 Carbon. In addition, SCS Mexico was approved to offer Organic Certification LPO under Mexico's Organic Products Law. As mentioned above, SCS 115 underpins the new certification program from SCS Global Services, Carbon Assured™. This certification supports the expanding market for recycled and lower carbon chemicals and plastics. SCS Global Services also introduced the Water Positive™ Verification service, the independent verification of water stewardship projects in accordance with the Volumetric Water Benefit Accounting 2.0 methodology.
For more than four decades, SCS has remained deeply committed to delivering science-driven expertise across auditing, verification, and certification services. As we advance through the coming years, we are intentionally expanding our network by building new partnerships and collaborating with organizations of every size and across all geographies. Through these efforts, we will continue to support a healthier planet, protecting land and natural resources while advancing progress grounded in rigorous science and responsible, ethical business practices.