The political landscape is shifting, and with it, the trajectory of Environmental, Social, and Governance (ESG) policies—particularly in the United States. With a renewed focus on rolling back DEI policies and softening climate commitments, businesses must navigate uncertain terrain while keeping long-term sustainability goals in sight.
Already, we’re seeing telltale signs of retreat. References to climate change have disappeared from the EPA’s website, echoing previous attempts to sideline environmental policy. There’s also speculation about a potential U.S. exit from the Paris Agreement, a move that would again signal a pullback from international climate commitments. While political winds may shift, one fundamental truth remains: science cannot be deleted, and reality cannot be censored.
The Short-Term ESG Landscape
For now, businesses may feel less regulatory pressure from the U.S. government on ESG reporting and compliance. Investors and companies that had been adopting Sustainability Accreditation frameworks under pressure from regulators may see a temporary reprieve. Some might be tempted to step back from ESG commitments, especially as ESG support comes under fire for being overly bureaucratic and too focused on audits and governance tick-box exercises rather than real-world impact.
In some ways, this criticism is justified. ESG, as it has been implemented in many sectors, has become more about meeting disclosure requirements than driving real environmental and social change. The backlash against ESG is, in part, a response to this gap between reporting and action.
A Crucial Opportunity: Rethinking ESG
But rather than abandoning ESG altogether, this shift presents an opportunity to reassess and improve. If ESG frameworks are to endure, they must prioritise real impact over paperwork. Businesses should focus less on checking compliance boxes and more on ensuring their actions drive measurable environmental and social progress. This means:
- Refining ESG metrics to better capture meaningful action rather than just governance structures.
- Shifting focus from audits to outcomes, measuring success by actual sustainability improvements, not just reports.
- Empowering businesses with tools like the SBA Reporting Framework, which makes ESG reporting practical and action-driven, rather than a regulatory burden.
The Long-Term Reality: ESG Will Be Back
Even if political pressure on ESG in the U.S. wanes for now, the underlying drivers of sustainability efforts—climate risks, supply chain vulnerabilities, and stakeholder expectations—are not going away. The private sector, global markets, and even local governments will continue pushing forward.
The EU, for example, is still ramping up corporate sustainability reporting requirements, and large investors remain committed to sustainable finance principles. As climate impacts intensify and consumer expectations evolve, ESG Accreditation—whether under the same name or a different one—will return to the U.S. agenda.
Don’t Give Up—Adapt
For businesses committed to long-term sustainability and resilience, the key takeaway is this: this is a moment to refine and strengthen ESG approaches, not to abandon them. The real challenges—climate change, inequality, and responsible governance—are not going away.
By making ESG more practical, action-oriented, and impactful, we can ensure that when political attention swings back to sustainability (as it inevitably will), the movement is stronger, more credible, and better equipped to drive real change.
Now is not the time to retreat—it’s time to reset ESG for the outcomes we need, rather than the bureaucracy we don’t.