Strategic Focus: ESG & Sustainability In The US

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Executive Summary

The 2024 election results ushered in a new political era in the US, with Republicans winning the presidency and both houses in Congress. With significant influence over the legislative and executive branches, the Trump administration has moved rapidly to reshape several federal policies. Many of these shifts – such as eliminating diversity, equity and inclusion (DEI) initiatives and reducing incentives for renewable energy – will directly affect firms’ sustainability efforts, while others – such as the creation of the Department of Government Efficiency (DOGE), changes in immigration policy and increased tariffs – will have broader impacts. Since the presidential inauguration in January 2025, President Trump has signed a flurry of Executive Orders (EOs); the Securities and Exchange Commission (SEC) has reversed course on its climate disclosure requirements; and states have taken action where the federal government has not. This report examines the administration’s early actions related to sustainability and offers insights on how firms can adapt in this shifting environment.
Summary for decision-makers
Uncertainty forms the backdrop to sustainability and climate disclosures in the US

The effects of the 2024 election were felt immediately
States will lead on climate-related disclosures, starting with California
Firms must navigate a fragmented landscape of other sustainability regulations at the state and federal levels
Businesses should not lose sight of sustainability goals
Figure 1. How President Trump acted on certain sustainability-related issues in his first six weeks
Figure 2. Examples of EOs issued by President Trump (January 20 to March 10, 2025)
Figure 3. Examples of directives from federal agencies (January 20 to March 10, 2025)
Figure 4. Key differences between the initial and consolidated California climate disclosure legislation
Figure 5. Comparison of the major state-led climate-related disclosure frameworks
Advocate Aurora Health, Anheuser-Busch, Army Corps of Engineers, Booz Allen, California Air Resources Board (CARB), Carrier, Chamber of Commerce, Chevron, Citigroup, Climate Mayors, Court of Appeals for the Federal Circuit, Customs and Border Protection, Department of Energy (DOE), Department of Government Efficiency (DOGE), Department of the Interior (DOI), Department of Transportation (DOT), Duke Energy, Enbridge, Environmental Protection Agency (EPA), Federal Deposit Insurance Corporation (FDIC), Federal Emergency Management Agency (FEMA), Federal Highway Administration (FHWA), Federal Reserve Board, FedEx, Forest Service, Ingredion, Intergovernmental Panel on Climate Change (IPCC), Johns Hopkins University, Kinder Morgan, NASDAQ, National Energy Dominance Council, National Highway Traffic Safety Administration (NHTSA), National Oceanic and Atmospheric Administration (NOAA), Net Zero Industrial Policy Lab, Network of Central Banks and Supervisors for Greening the Financial System (NGFS), New York State Senate, New York University (NYU) Stern School of Business, Occupational Safety and Health Administration (OSHA), Office of Management and Budget (OMB), Office of the Comptroller of the Currency (OCC), PepsiCo, Pleiades Strategy, Prysmian, Qualcomm, Ropes & Gray, Securities and Exchange Commission (SEC), Shell, Supreme Court of the United States, The National Law Review, The Walt Disney Company, Tracera (formerly ESG Flo), UN, UPS, US Department of Agriculture (USDA), US District Court for Central District of California, US House of Representatives, US Senate, VISA

About the Authors

Jessica Pransky

Jessica Pransky

Principal Analyst

Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises ...

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Kim Knickle

Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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