In the first 100 days of President Trump’s administration, sweeping changes have reshaped US environmental policy. Federal agencies have been downsized, regulations aimed at reducing pollution and protecting public health have been revoked, and many renewable energy initiatives have been halted. Public lands have been opened to increased logging and drilling, the Endangered Species Act (ESA) is under threat, and thousands of parks and forest service personnel have been dismissed. Furthermore, scientific integrity has taken a hit, with steep cuts to research funding and disregard for expert consensus on climate change and conservation.
Key actions include:
- Rollback of climate regulations: Efforts are underway to dismantle existing climate regulations including state-level climate initiatives that are seen as hindering energy production. There are also efforts to reconsider the Environmental Protection Agency’s (EPA) “endangerment finding” regarding greenhouse gas (GHG) emissions, which is a key legal basis for federal climate regulations.
- Fossil fuel prioritization: Under the banner of “American energy dominance,” the administration is fast-tracking permits for oil, gas, and coal development on both federal and private lands.
- Undermining of climate science: Climate data has been removed from federal websites, and there are indications of efforts to undermine established climate science, potentially through producing reports that downplay or deny the severity of climate change.
- Withdrawal from global agreements: The US has stepped away from international climate agreements, including the Paris Agreement, and cut funding for international climate initiatives.
- Targeting green investments: Actions have been taken to halt the disbursement of funds from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), that were designated for “green new deal” type programs. There are also indications of actions taken to remove nonprofit tax status from climate-related nonprofit organizations.
One particularly alarming development is the dismissal of all scientists and other authors working on the National Climate Assessment, a report mandated by Congress and last produced in 2023. That report found that climate change is resulting in more frequent and intense extreme weather events with costly and harmful effects. The dismissals will allow the administration to either skip the congressionally mandated report altogether, or pursue an alternative assessment that is less focused on widely accepted climate science.
How Companies Can Respond
Even as federal climate policy regresses, corporate environmental leadership remains critical—and expected. Investors, consumers, and state and international regulations are driving continued pressure for sustainability. Here’s how companies can stay on course:
- Emphasize economic benefits: Sustainable practices often come with long-term cost savings and efficiency gains. For example, renewable energy can reduce long-term energy costs, and waste reduction can lower operational expenses. This includes highlighting how sustainability can drive innovation and create new market opportunities, which can resonate with investors who prioritize long-term growth.
- Maintain transparency: Continue disclosing environmental, social, and governance (ESG) data, even in the absence of federal mandates. Transparent reporting builds trust and accountability with stakeholders, particularly institutional investors who increasingly factor ESG performance into their decisions.
- Strengthen supply chain sustainability: Collaborate with suppliers to reduce their environmental impact, which can mitigate risks and enhance the overall sustainability of a company’s supply chain. It is important to implement traceability systems to ensure that products are sourced responsibly.
- Invest in resilience: Climate-related risks, from wildfires to floods, are increasing. Prepare for the impacts of climate change by investing in infrastructure and operations that can withstand extreme weather events. Develop contingency plans to minimize disruptions to business operations.
- Follow state, local, and international policy: While US federal climate policy may change, many progressive states and local governments are continuing to lead on climate issues. The EU remains a global leader in sustainability regulation, driven by the European Green Deal aiming for climate neutrality by 2050. Aligning with these policies keeps companies competitive in global markets.
Bottom Line
Regardless of federal rollbacks, the global push for sustainability is not slowing down. Forward-thinking companies recognize that sustainability is not just an moral imperative, but also a sound business strategy. For this reason, even in a less supportive regulatory environment, companies can maintain their sustainability efforts by focusing on the economic and competitive advantages they provide. By adopting these strategies, US companies can navigate the challenges of a shifting policy landscape while maintaining their commitment to sustainability.
Conclusion
Even in a potentially hostile federal climate, US companies can still effectively address investor and consumer demands for sustainability. Companies should emphasize the economic benefits of sustainable practices, maintain transparency in ESG reporting, strengthen supply chain sustainability, invest in climate resilience, and adhere to progressive state and local policies. If your organization needs assistance in adapting its sustainability strategies to the current market and political environment, please contact Canopy Edge for a consultation to discuss potential options.
