Strategic Focus: ESG & Sustainability In The US

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.