Environmental, social and governance (ESG) factors have moved to the front of global politics and corporate strategy, fuelling lively debates about environmental sustainability, social justice and governance standards in the past years, especially in Europe. On the other side of the world, with Donald Trump taking office as the new President of the United States, discussions in the US are also far from slowing down but are taking on a new dynamic.
Overview: Decarbonisation and energy transition at the heart of the global sustainability debate
In global discussions during Q4 2024, decarbonisation and the energy transition, along with human rights and diversity and inclusion, remained at the top of the most prominent sustainability topics, driving conversations in both the US and Europe.
While decarbonisation and energy transition remain the most discussed topics by a wide margin in both regions, diversity and inclusion has lost some of its momentum in the US, whereas interest remains steady in Europe. Meanwhile, discussions around human rights have seen a nuanced shift, dropping in volume but improving in perception in the US, while rising dramatically in Europe - albeit with a much more negative tone.
Other topics that have seen a significant rise in discussion compared to the previous quarter include ethics and transparency, as well as biodiversity in Europe, both experiencing double-digit growth rates. However, this increased attention has been accompanied by a more negative sentiment. In contrast, the blue economy, though still a niche topic with relatively few mentions, has stood out for its positive sentiment (see exhibit 1).
Deep dive: While the US and Europe discuss similar topics, their narratives differ
As Europe pushes ahead with its energy transition agenda, the US is reversing course by doubling down on fossil fuels
The current energy landscape is shaped by diverse regional strategies and driven by major global events. Europe has been a leading force in advancing renewable energy initiatives, and the Biden administration has pushed for clean energy investments. However, the re-election of Donald Trump has introduced a new level of uncertainty and a new political narrative, particularly on climate and energy policy, which is narrowing the US sustainability agenda.
Drill, baby, drill: US’ energy emergency and deregulation agenda
Europe as the sturdy anchor for the energy transition
Conversations around workplace equality, gender diversity, and human rights are gaining momentum
Acting in an uncertain terrain
Despite divergent regional trends, sustainability topics have maintained their prominence in global conversations. In the US, discussions around human rights, diversity, and inclusion have diminished under President Trump's administration, while circular economy emerges as a promising topic that fuelled American discussions. Conversely, Europe has seen a substantial rise in most sustainability discussions, though gaining much more negative sentiment.
However, these evolving dynamics raise questions about the sustainability and resilience of these priorities and companies may face growing pressure to reassess their sustainability strategies to navigate this shifting landscape. While the US is prioritising deregulation and economic pragmatism over long-term sustainability commitments, Europe has reshaped its agenda to streamline and boost its competitive edge through the comprehensive Competitiveness Compass programme.
In this polarised world, global synergies may be weakening, but territorial competitiveness is gaining ground. Europe and other nations need to take the lead in tackling sustainability challenges, while investors need to remain agile to adapt to this fragmented sustainability environment.
