2025 had an eventful start, with implications looming over the year to follow. Banks and financial institutions have fled climate alliances and several major corporations are scaling back diversity, equity and inclusion commitments. The common denominator driving both changes, according to many experts, is current United States President Donald Trump.
Trump began his first day in office on Jan. 20 with a bang, signing a flurry of executive orders that signaled reversal on the nation’s federal climate policy. Among them included orders to withdraw the U.S. from the Paris Agreement, again; declare a national “energy emergency;” pause all wind power development; and suspend all funding disbursements related to the Inflation Reduction Act and the Bipartisan Infrastructure Law.
In the months between his election and inauguration, a flurry of major U.S. banks and asset managers left major climate-focused alliances and groups. However the impact of those departures on the banks’ actual policies is yet to be seen.
Aside from dealing with the uncertainty surrounding Trump’s policies on climate, corporations are also struggling to meet the energy demands associated with the increased adoption of artificial intelligence in data centers. The energy strain also presents a dilemma for companies looking to become more sustainable by utilizing AI, as increased energy loads have also led to a rising dependency on fossil fuel power sources.
These are just some of the developments shaping the ESG space this year. Read on for a deeper look at what’s in store for 2025.
