5 Impactful Insights from the 2025 State of Sustainability in the Pet Industry Report

Built with data from PSC's Annual Benchmark Assessment, PSC Accredited member reports, proprietary consumer research from Nextin and BBMG, and publicly available data from credible sources that track sustainability trends across the globe and the pet sector, the report offers an 'easy-to-understand snapshot of the sustainability landscape of today and where we are headed tomorrow.'
 

Here are 5 insights that capture sustainability in the pet industry today

Pet parents are passionate about sustainability and expect more from businesses

Understanding how pet parents define, prioritize, and reward sustainability is a strategic necessity.
 

84% of pet parents believe companies should be doing more to address climate change, which is 9% more than non-pet parents. And they're acting on those beliefs: 62% bought an environmentally friendly product in the past month, according to GlobeScan's 2025 Health and Sustainable Living Study.
 

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Sustainability Trends In The Pet Industry

Younger generations, especially Millennials and Gen Z, expect brands to be transparent and data-driven. They want to see recyclable packaging, responsible sourcing, and third-party verified claims according to this Deloitte Survey. As the report puts it, 'In a market where we see that sustainability has become synonymous with trust, proof is the new price of entry.'

Sustainability drives business value across the board

The pet industry is at an inflection point where authentic sustainability can be a core driver of market advantage and risk mitigation.
 

The report highlights four major benefits for companies prioritizing sustainability:
 

• Operational Excellence: Reducing waste, energy use, and emissions improves efficiency
• Innovation as an Enabler: New regulations are prompting material and product innovation
• Attracting & Retaining Talent: Purpose-driven companies are more likely to engage employees
• Data-Driven Decisions: Companies that disclose their impact build stronger supply chain visibility.
   

In fact, 62% of business leaders plan to increase sustainability investments in 2025, which is a 10% jump from last year according to the Capgemini Report – Navigating uncertainty with confidence: Investment priorities for 2025.

Scope 3 emissions remain a blind spot… but they're critical

Only 40% of PSC Benchmark respondents extend their measurement to Scope 3, the area where the greatest environmental risks exist.
 

That includes emissions from upstream sourcing, downstream distribution, and product end-of-life. According to CDP, more than 90% of a company's carbon footprint typically comes from Scope 3 emissions.
 

Despite this, only a minority of companies currently measure or report on them, revealing a major gap in climate risk strategy and transparency.

Stronger sustainability governance is emerging

The PSC Benchmark data shows that foundational practices are becoming more common across the industry. For example:
 

• 54% of companies have a public-facing sustainability statement
• 56% integrate sustainability into company strategy and decision-making
• 79% have a formal sustainability role or team, often at a leadership level.
   

The report concludes that 'companies that build disciplined systems for measurement, governance, and disclosure gain clearer visibility into risks, unlock operational efficiencies, and create a stronger platform for future growth.'
 

These practices help companies move from one-off projects to long-term, integrated strategies.

Understanding regulation is no longer optional

As regulatory expectations rapidly evolve, businesses that fail to keep up will fall behind. The report warns that 'regulatory pressure is fueling innovation, forcing the disclosure of energy data, the redesign of packaging, the pursuit of alternative proteins, and the optimization of logistics.'
 

From Extended Producer Responsibility (EPR) to the EU's Corporate Sustainability Reporting Directive (CSRD), compliance is shifting from a box-checking exercise to a catalyst for operational efficiency and product innovation. Yet many companies remain unaware of these requirements, especially the full scope of Scope 3 emissions or the need for third-party verified claims.
 

The report's forward-looking analysis is clear: 'legislative pressure will fragment and intensify.' Companies that embed ESG risk into business planning, align with global reporting frameworks, and prepare for what's coming (not just what's already here) are poised to turn compliance into competitive advantage.
 

Most companies in the report described their efforts as early-stage or evolving. But there's alignment around where to focus next:
 

• Expanding Scope 3 emissions measurement
• Building more transparent, verifiable claims
• Aligning with global goals like SDG 12 (Responsible Consumption), SDG 13 (Climate Action), and SDG 3 (Health & Well-being).
   

More companies are making sustainability part of their business strategy and are ready to continue making measurable progress and continuous improvement. Those that do will stand out with consumers, who are looking for brands they can trust to back up their claims with real action.

Source: Pet Sustainability Coalition