Trump’s election win signals a shift in federal policymaking on sustainability. However, companies are advised to strengthen their efforts and leverage sustainable business opportunities.
With Donald Trump elected as the next U.S. President, questions arise about the direction of the nation’s climate policies and the impact on sustainable practices across industries. Trump’s platform leans toward deregulation, promoting energy independence, for example through increased oil and gas production, and reducing federal support for the clean energy transition, all of which signals a shift away from the climate-focused policies of previous administrations. However, the pressure from activists, investors and business leaders is mounting, as there is strong public and corporate interest in maintaining some form of environmental responsibility. Many are now watching to see if the administration will balance its traditional energy policies with rising demands for corporate accountability in sustainability.
Despite differences in party agendas, bipartisan support for clean energy initiatives has seen steady growth in recent years. An example of this is the U.S. Climate Alliance, which is a bipartisan coalition of governors securing America’s net-zero future by advancing state-led, high-impact climate action. Launched in 2017, it includes governors from 24 states and territories and prioritizes policies focusing on, among others, GHG emission targets, buildings, and electricity.
This foundation could pave the way for sustainable practices to endure under a Trump administration, as states and businesses may continue driving renewable energy adoption and job creation independently. A bipartisan commitment, combined with growing consumer expectations, would present businesses with an opportunity to adopt sustainable practices that can enhance their resilience and appeal.
The election results may lead to changes in how existing legislation, such as the Inflation Reduction Act (IRA), is applied or prioritized. While broad climate-focused initiatives may not see the same federal support as under previous administrations, efforts to expand infrastructure for electric vehicles - possibly driven by Elon Musk’s recent investments in and engagements with Trump - and track corporate climate impacts are likely to continue in states with strong environmental agendas and through market-driven demand. Companies that proactively focus on supply chain transparency and emissions monitoring will be better prepared to adapt to varying state and federal expectations.
As companies navigate this evolving policy landscape, those who align with sustainable practices and the most stringent standards in place will maintain an edge, addressing both regulatory needs and consumer demand for transparency.
Companies with complex supply chains may see a shift toward reduced federal oversight on Environmental, Social, and Governance (ESG) compliance. Trump has previously criticized corporate reporting requirements on climate risks, signaling that federal ESG regulations like the SEC climate disclosure rules may not expand under his administration. However, businesses will still need to navigate state-level mandates and pressures from investors prioritizing transparency in supply chain practices.
Trump’s approach to trade could reintroduce tariffs that prioritize domestic manufacturing and energy independence, potentially impacting global supply chains. For companies reliant on international sourcing, especially from countries with differing environmental and social standards, this may require adjusting procurement strategies to align with U.S.-focused trade policies. Businesses operating in certain European territories already need to comply with an array of supply chain-related EU regulations such as the Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), the EU Deforestation Regulation (EUDR), and the Carbon Border Adjustment Mechanism (CBAM). Learn about these regulations and how to navigate them with our 5-Step Guide for North American companies.
A Trump administration might take an opposing stance toward the EU’s CBAM as part of its broader “America First” agenda, which originally focused on establishing global tariffs and reducing reliance on foreign trade, particularly with China. With new EU regulations targeting imported emissions, a Trump-led U.S. could respond by imposing trade barriers or tariffs on European exports. Trump’s administration does recognize the economic leverage of CBAM-like policies, but the approach would likely be more unilateral and protectionist – resulting in new regulatory compliance requirements for organizations with significant greenhouse gas emissions.
COP29, the 29th annual Conference of the Parties under the United Nations Framework Convention on Climate Change (UNFCCC), to be held from November 11 to 22 in Baku, Azerbaijan, will bring together global leaders, policymakers, business representatives, and environmental groups to advance international climate action. Trump’s focus on deregulation may mean that COP29 outcomes, like emissions targets and enhanced ESG standards, are less binding domestically. Furthermore, there’s speculation that the U.S. might step away from the UNFCCC altogether and it’s quite likely that the U.S. will again withdraw from the Paris Agreement, as it did under the previous Trump administration.
Still, U.S. companies operating internationally or trading with markets that prioritize strict sustainability standards such as the European Union would face pressure to align with COP29 initiatives.
Though Trump’s policies lean toward traditional energy sources, such as oil, natural gas, and coal, demand for robust and low-carbon supply chains is likely to remain strong due to investor expectations and international market requirements. Critical industries like agriculture, technology, and manufacturing will need to consider supply chain resilience and emissions monitoring as part of ongoing ESG commitments, regardless of federal policy shifts.
Organizations that proactively manage these aspects will stay competitive in both domestic and international markets.
While organizations strive to extract maximum value from their domestic and international supply chains, responding to regulatory forces, investor expectations, and customer demands will only become more challenging. This remains true regardless of changes in U.S. political leadership, as many of these forces operate outside the direct influence of American politics.
In Part Two of this series, we’ll explore the key risks, opportunities, and potential steps supply chain leaders can take in this evolving landscape to adapt and thrive. If you have any questions about navigating these challenges or would like to see how you can enhance your sustainability efforts, contact an expert today.
Steven Grinberg is the VP of Marketing for North America at IntegrityNext. With nearly 25 years of experience helping tech start-ups, including those focusing on ESG, AI, and biometrics drive growth in the U.S. and Canada, Steven has kept his finger on the pulse of policy advances, customer demand, and investor needs related to these spaces.
Jared Ridgley is the Head of Sales for North America at IntegrityNext. A passionate sales leader with over 15 years of Software-as-a-Service experience, half of which is within the procurement space. Jared spent much of his career primarily working in Europe and has helped companies all over the world navigate complex challenges, where regulatory compliance often plays a significant role.
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