The 2024 U.S. election is expected to reshape trade and environmental policies, bringing new challenges but also opportunities for sustainable growth, resilience, and innovation. In this dynamic environment, technology will play a key role in improving efficiency, transparency, and data-driven decision-making.
In the first part of our U.S. election coverage, we explored the broader implications of the Trump presidency for the future of supply chain sustainability.
Trump’s policies tend to favor conventional energy sources and deregulation, meaning federal support for green tax credits or sustainability initiatives may not expand as previously anticipated. However, some existing clean energy tax incentives from the IRA may persist, providing businesses with continued access to resources like tax credits for energy-efficient manufacturing and decarbonization projects, though likely on a limited basis.
This political shift also brings regulatory uncertainty within the United States. Without expanded federal ESG mandates, states and international markets would need to step up their own sustainability standards, leaving companies to navigate varied compliance requirements. As a result, companies would benefit greatly by investing in proactive risk management to address the complex regulatory environment and ensure adherence to ESG policies in regions that maintain stricter sustainability standards.
On the global stage, Trump’s policies could lead to a further divergence from international ESG standards, such as those in the EU, forcing U.S. multinationals to align with external environmental regulations independently. This divide will increase compliance burdens for businesses that operate internationally and encourage them to adopt sustainability practices that meet the more rigorous global standards to remain competitive and avoid supply chain disruptions. It’s a complex challenge, but not an insurmountable one - with the right guidance, tools, and expert support.
Investor demand will continue to be crucial for companies pursuing sustainability goals under the new administration. For example, the U.S. saw a record $71 billion in clean energy investment in Q1 2024, marking a 40% increase from the previous year. Major segments included electric vehicles, solar power, hydrogen, and decarbonization technologies, indicating high investor and private sector interest in emissions reduction. This financial commitment not only supports clean energy expansion but also aligns companies with climate goals, underscoring the importance of sustained private funding to accelerate sustainable growth and meet future climate targets.
Consumers increasingly expect companies to demonstrate sustainable practices. This demand is driven by rising awareness of environmental issues, leading many customers to favor brands that can ensure ethical sourcing, transparency, and reduced environmental impacts. This includes knowing that an investment has been made to ensure the mitigation or absence of pollution, human rights violations, and deforestation at home and abroad. A PwC survey highlights that customers are willing to pay a premium for products and services sourced, developed, and provided sustainably.
This requires businesses to integrate sustainability into their supply chain operations, driving corporate strategy, and influencing long-term value creation. Companies aligning with these expectations are better positioned to foster customer loyalty.
Companies with complex supply chains face increasing regulatory expectations on sustainability. This is true regardless of the U.S. election outcome. Technology like that offered by IntegrityNext plays a pivotal role in helping businesses adapt to these requirements. Tools such as end-to-end supply chain visibility and streamlined reporting solutions can help organizations manage ESG standards effectively and stay ahead of evolving regulations.
Advanced technologies like artificial intelligence (AI) and automation empower companies to analyze large datasets in real-time, enabling data-driven decisions that align with sustainability goals. By integrating AI with supply chain management, businesses can predict and mitigate environmental risks, optimize resource usage, and adapt quickly to policy changes. This not only strengthens compliance but also contributes to a significant reduction in environmental impact.
As regulations tighten and become increasingly complicated, such as with the EU Deforestation Regulation (EUDR), IntegrityNext offers the transparency and traceability that modern supply chains demand. IntegrityNext helps businesses stay competitive and maintain consumer trust through real-time tracking and comprehensive reporting on sustainability metrics. By ensuring all levels of the supply chain are accountable and strengthening resilience, companies can manage risks effectively and demonstrate their commitment to sustainability.
In this new regulatory landscape, technology is essential for companies seeking to meet compliance demands while enhancing their sustainability profiles.
The regulatory landscape for sustainability in the U.S. may shift toward reduced federal mandates, making it essential for businesses to navigate compliance with a nuanced approach. Companies that proactively invest in sustainability technologies, like real-time ESG tracking and advanced data analytics, will be best positioned to meet state-specific and international requirements. Leveraging tools with extensive, built-in supply chain networks, AI, and automation can streamline monitoring and reporting processes, allowing businesses to stay efficient and resilient amid regulatory changes and maintain competitiveness in markets with stricter standards, such as the EU.
In addition to adopting new technologies, supply chain leaders play a critical role as trailblazers in shaping sustainable practices within their industries. Without sweeping federal mandates, businesses should work closely with policymakers at all levels and other stakeholders to establish balanced standards that advance sustainability while supporting economic growth.
While Trump’s policies may reduce federal requirements, global supply chains remain under pressure to enhance transparency and sustainability. Companies that innovate and use forward-thinking strategies to manage compliance with varied standards - domestic and international - will be more adaptable to evolving expectations. There’s incredible strategic value in sustainability practices and reporting, regardless of regulatory requirements. Now is the time for supply chain leaders to ensure their organizations are not only compliant but also efficient, resilient, and competitive in an increasingly complex regulatory environment.
More and more companies are realizing the incredible potential in risk mitigation, efficiency improvements, and exposure to new, lucrative opportunities by optimizing their supply chain sustainability. If you’re interested in learning how your organization can elevate its sustainability efforts across the entire supply chain in today’s complex regulatory environment, get in touch with an expert today for guidance.
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.
November 2024
Get expert insights and advice on the CSDDD, CBAM, CSRD, and the German Supply Chain Act, and learn about IntegrityNext’s end-to-end solution for the EUDR.
September 2024
Global supply chains are inherently complex and opaque. The IntegrityNext Multi-Tier Supply Chain Visibility solution offers the transparency and insights that regulators are increasingly demanding.
April 2023
Learn about the critical role of Scope 3 emissions for companies, why supplier-specific data entails many benefits and find out about the fundamental importance of supplier engagement and collaboration.
