Coping with Fluctuations in Climate Change Action

In recent years, there has been a surge in mandatory climate reporting regulations and sustainability standards. However, there has been a noticeable shift in political sentiment under President Donald Trump’s administration, leading to a pullback in climate-related initiatives, as Adam Fishman, the associate director at BSR, a sustainable business network and consultancy, pointed out.

The U.S. Securities and Exchange Commission (SEC) recently delayed the implementation of the climate disclosure rule, approved in 2024, that mandates public companies to report their greenhouse gas emissions. This delay, along with other policy changes such as tariffs, environmental rollbacks, and the removal of energy efficiency standards, is affecting climate actions across various sectors, Fishman highlighted during a recent webinar hosted by Reuters.

These political and economic developments are disrupting the consistent signals that businesses had been receiving, prompting them to reassess their priorities in light of climate change, Fishman explained. He emphasized that environmental risks would be the top concerns for businesses over the next decade and that the impact of climate change directly influences business priorities.

Erin Augustin, co-lead global sustainability and vice president sustainability operations and supply chain at Oatly, a company that produces oat-based dairy alternatives, emphasized the importance of considering sustainability impacts alongside cost and other production factors. Augustin stressed the need to make conscious decisions and acknowledge trade-offs when it comes to sustainability, adding that the company aligns with partners that share its sustainability values to achieve their commitments and ambitions.

Augustin cited an example of Oatly’s decision to replace a boiler with a hybrid model that runs on natural gas or biomass pellets. While the company’s preference is to use biomass pellets, the hybrid model allows flexibility to source more sustainable fuel, aligning with their decarbonization goals.

Laura Ann Schweitzer, director of sustainability and strategic sourcing at Tcho Chocolate, highlighted the company’s journey towards becoming a certified B Corp in 2021, which prompted them to assess their carbon footprint. She acknowledged the role of transportation, especially congested shipping routes, in contributing to carbon emissions and emphasized the benefits of sourcing renewable energy from the grid.

Schweitzer emphasized that cocoa farming, which occurs within a specific latitudinal range, is particularly vulnerable to climate change impacts. Tcho Chocolate’s business model focuses on fair-trade certified cocoa purchases, ensuring that smallholder farmers in their supply chain adhere to environmental regulations and receive compensation for sustainable practices.

In conclusion, businesses across various industries are navigating the evolving landscape of climate-related regulations and sustainability standards. By considering the environmental impacts of their operations, collaborating with like-minded partners, and prioritizing sustainable practices, companies can align their business priorities with climate action goals for a more sustainable future.