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View all search resultsPolitical changes don’t weaken the case for green business
No amount of shock-and-awe policy disruption in one country compares to the disruption caused by climate change.
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An artisan paints an eco-friendly idol of elephant-headed Hindu deity Ganesha made with mud, jute and bamboo to reduce water pollution during the immersion rituals ahead of the Ganesh Chaturthi festival, at a workshop in Hyderabad, India, on Aug. 28, 2024. (AFP/Noah Seelam)
S
ince Donald Trump’s return to the White House, the United States has taken an everything-everywhere-all-at-once approach to disrupting the domestic and global status quo, and sustainability and climate commitments have been among its first targets.
Trump immediately signed an executive order withdrawing the US from the Paris climate agreement, and his administration then canceled funding for clean-energy projects under the Inflation Reduction Act and the Bipartisan Infrastructure Law.
Against this backdrop, some companies are quietly downplaying or abandoning their previously announced environmental and climate commitments.
But no amount of shock-and-awe policy disruption in one country compares to the disruption caused by climate change. Already, the financial costs from disrupted global supply chains, owing to water stress, biodiversity loss and land degradation, are projected to reach up to US$25 trillion by 2060.
Businesses that fail to manage these risks will face higher costs, increased regulatory scrutiny and reputational damage.
For example, automakers that are slow-playing the transition to electric vehicles may find themselves scrambling to catch up as more governments enact legislation to phase out internal combustion engines in the coming years. In time, legacy auto brands are likely to face the same kind of scrutiny and reputational fallout that oil and gas producers have.
By contrast, companies that proactively build greater resilience throughout their businesses and supply chains will benefit from greater investor confidence, and thus lower capital costs. For example, the champagne brand Taittinger has opened a vineyard in Kent to manage the risk that climate change poses to production in France.
