Trends That ESG Professionals Should Keep an Eye o
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Posted On: 01/14/2025 4:32:31 PM
Trends That ESG Professionals Should Keep an Eye on in 2025
2025 may be a difficult year for the ESG space, particularly after president-elect Trump is sworn in. It is expected that Trump’s administration will reverse the progress made by Biden’s administration in this space, particularly climate-friendly and ESG regulations and legislations.
Already, some of the biggest banks in the country have exited climate alliances, with major firms like Meta also withdrawing from their DEI commitments. Below, we look at other trends professionals in the ESG space need to look out for this year.
More firms on Wall Street exiting climate alliances
On New Year’s Eve, Citigroup and Bank of America announced that they’d be withdrawing from the Net Zero Banking Alliance. This announcement was soon followed by similar ones from JPMorgan Chase and Morgan Stanley. Towards the end of last year, Wells Fargo and Goldman Sachs also exited the alliance.
Heads of agriculture and state attorneys general from the Republican Party have launched separate probes targeting the aforementioned firms and their activities in the alliance. With the alliance focused on climate change facing increased scrutiny from the GOP, these exits are expected to increase.
At the moment, only Areti Bank, Climate First Bank, and Amalgamated Bank remain in the Net Zero Banking Alliance.
Companies walking back on their DEI policies
McDonald’s was among the first firms to revoke some initiatives focused on DEI this year, becoming the latest corporation to roll back/dilute their DEI program in the recent past.
In 2024, companies that stepped back from their DEI initiatives, roles and objectives included Microsoft, Tractor Supply, Harley Davidson, Walmart, Lowe’s, Molson Coors, and Ford, among others.
These reversals come as the scrutiny of such policies by the GOP continues to grow following the Supreme Court’s decision to overturn affirmative action in college admissions. This affected race-conscious admission decisions in the U.S.
It doesn’t help that the view the incoming administration has on such initiatives only adds to anxiety, despite research showing that firms with workforces that are representative of the country’s racial and gender diversity have higher chances of performing better than their competitors, boosting employee productivity, improving business revenue, and encouraging innovation.
Appetite for clean energy growing as demand for AI increases
The growing uptake of AI has seen the demand for energy increase, with the renewable energy needed to run data centers also increasing as firms continue to reduce their carbon emissions.
Major firms like Meta and Microsoft are also exploring the use of nuclear power in an effort to offset this demand with clean energy and zero emissions.
Slower but steady green tech and investments
Experts believe that the private sector will continue advancing its work on the clean energy transition, even if the federal government’s stance on climate change and ESG slows the transition’s pace.
It remains to be seen how the trends above could impact the pace at which enterprises like Reflex Advanced Technologies Corp. (CSE: RFLX) (OTCQB: RFLXF) integrate even more ESG principles within their entire chain of operations.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
2025 may be a difficult year for the ESG space, particularly after president-elect Trump is sworn in. It is expected that Trump’s administration will reverse the progress made by Biden’s administration in this space, particularly climate-friendly and ESG regulations and legislations.
Already, some of the biggest banks in the country have exited climate alliances, with major firms like Meta also withdrawing from their DEI commitments. Below, we look at other trends professionals in the ESG space need to look out for this year.
More firms on Wall Street exiting climate alliances
On New Year’s Eve, Citigroup and Bank of America announced that they’d be withdrawing from the Net Zero Banking Alliance. This announcement was soon followed by similar ones from JPMorgan Chase and Morgan Stanley. Towards the end of last year, Wells Fargo and Goldman Sachs also exited the alliance.
Heads of agriculture and state attorneys general from the Republican Party have launched separate probes targeting the aforementioned firms and their activities in the alliance. With the alliance focused on climate change facing increased scrutiny from the GOP, these exits are expected to increase.
At the moment, only Areti Bank, Climate First Bank, and Amalgamated Bank remain in the Net Zero Banking Alliance.
Companies walking back on their DEI policies
McDonald’s was among the first firms to revoke some initiatives focused on DEI this year, becoming the latest corporation to roll back/dilute their DEI program in the recent past.
In 2024, companies that stepped back from their DEI initiatives, roles and objectives included Microsoft, Tractor Supply, Harley Davidson, Walmart, Lowe’s, Molson Coors, and Ford, among others.
These reversals come as the scrutiny of such policies by the GOP continues to grow following the Supreme Court’s decision to overturn affirmative action in college admissions. This affected race-conscious admission decisions in the U.S.
It doesn’t help that the view the incoming administration has on such initiatives only adds to anxiety, despite research showing that firms with workforces that are representative of the country’s racial and gender diversity have higher chances of performing better than their competitors, boosting employee productivity, improving business revenue, and encouraging innovation.
Appetite for clean energy growing as demand for AI increases
The growing uptake of AI has seen the demand for energy increase, with the renewable energy needed to run data centers also increasing as firms continue to reduce their carbon emissions.
Major firms like Meta and Microsoft are also exploring the use of nuclear power in an effort to offset this demand with clean energy and zero emissions.
Slower but steady green tech and investments
Experts believe that the private sector will continue advancing its work on the clean energy transition, even if the federal government’s stance on climate change and ESG slows the transition’s pace.
It remains to be seen how the trends above could impact the pace at which enterprises like Reflex Advanced Technologies Corp. (CSE: RFLX) (OTCQB: RFLXF) integrate even more ESG principles within their entire chain of operations.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
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