The outcome of today’s U.S. presidential election indeed holds significant implications for the future of ESG (Environmental, Social, and Governance) and sustainability both within the United States and globally. If former President Trump wins, the impacts could include:
- ESG Disclosure and Regulation: The Securities and Exchange Commission (SEC) has been working to strengthen ESG disclosure requirements for corporations. A Trump administration could impede these efforts, reducing transparency and accountability for corporate environmental and social impacts.
- Clean Energy and Climate Policies: While it is true that repealing the Inflation Reduction Act (IRA) might be challenging given its economic impact on key states that have benefited from clean energy investment, a Trump presidency could still slow down the transition by reducing incentives for renewables and cutting back on regulatory measures like methane fees. Promises to roll back the Clean Power Plan could also lead to relaxed pollution controls.
- International Climate Agreements: Trump’s plan to withdraw from the Paris Agreement once more and potentially exit the United Nations Framework Convention on Climate Change (UNFCCC) would severely undermine international climate action. This could weaken global climate diplomacy and delay collective efforts to address climate change, affecting commitments to limit global warming.
Overall, the election results will have lasting effects on environmental and sustainability initiatives, and a shift in leadership could hinder global progress at a crucial moment in the fight against climate change.
Visual by ESG Book’s Aishwarya Shukla
