Opinion | After a mixed bag for climate action in 2024, businesses must take the lead

This year has been tough for corporate sustainability, especially in the United States. Despite some promising developments, the journey towards a fairer and more sustainable world has grown more challenging. After decades of sustainability awareness, some companies are openly stepping back from social and climate commitments.

The challenges are immense. Climate change, biodiversity loss and inequality are accelerating. In 2024, we witnessed the hottest day ever recorded, a staggering 73 per cent loss in global wildlife since the 1970s, and a widening gap between the ultra-wealthy and everyone else. Add to this a backlash against diversity and inclusion efforts in countries such as the US, even as most Americans continue to support equity initiatives.

Meanwhile, the anti-ESG (environmental, social and corporate governance) movement has gained steam, urging companies to “stay out of politics” while simultaneously demanding action on societal challenges. This volatile mix of pressures has left businesses in a precarious position, and their responses have been as varied as they are revealing.

This year, over half the world voted in national elections, with seismic shifts in leadership. Far-right populist parties gained ground in many countries, including the US, where Donald Trump was re-elected. For sustainability, this is a significant setback. Far-right policies often downplay or dismiss climate action and tend to exacerbate inequality through regressive economic policies.

Early signs from the incoming Trump administration are not encouraging. Trump has picked an oil executive for the post of energy secretary, plans to exit the Paris Agreement again and has threatened to dismantle climate-focused policies like the Inflation Reduction Act. A series of Supreme Court rulings this year which weakened environmental protections further underscores the challenges.