The State of Net Zero in 2026:
How US businesses are adapting their climate strategies in an age of political and economic disruption

As Washington scales back climate commitments, a majority of US businesses say they're now more worried about losing ground to overseas competitors than about missing a net-zero target. New BSI data suggests American companies have quietly kept moving on decarbonization, they've just stopped calling it that.

Brand Provided | By Ryan Lynch and BSI Professional Services | Published 18 hours ago | About a 6 minute read

Image: Photo by lonely blue on Unsplash

2026: A year of turbulence and energy volatility

The last year has been marked by geopolitical turbulence and an intensely polarized domestic political climate, leaving American businesses at the center of a perfect storm defined by policy uncertainty, energy price volatility and economic instability.

Energy prices, already elevated in the years following Russia’s invasion of Ukraine, have risen further in the wake of the Iran conflict, and US businesses are feeling the strain of higher prices and operational costs.

In an uncertain economic environment, pressure on business leaders has been compounded by a political climate in which climate skepticism is becoming an increasingly entrenched feature of the political establishment. As the federal government scales back climate commitments, "drill, baby, drill" has become the defining slogan of its energy posture, leaving businesses pursuing long-term transition strategies in the lurch.

Yet with oil prices as high as they are, and with the risks of relying on volatile fossil fuel markets becoming harder to ignore, this rollback looks increasingly out of step with commercial reality. Recent geopolitical events have reinforced the strategic case for diversification, resilience and greater energy sovereignty.

In that context, American businesses are being forced into a pragmatic reassessment of their climate and energy strategies. The question is not whether the operating environment has changed, it clearly has, but how business is responding.

Rhetoric vs reality

So how are American businesses navigating high prices, political uncertainty and a fractured policy landscape?

BSI’s G7 Temperature Check points to the growing prevalence of what might be called "climate coding," a phenomenon where firms reframe emissions reduction in the language of cost reduction, operational efficiency, resilience and risk management, rather than environmental altruism. This is not a retreat from action, but a recalibration of how that action is justified and communicated.

The underlying appetite for decarbonization remains strong. An overwhelming 84% of US businesses believe decarbonization should remain a priority, even if specific targets prove temporarily unattainable. That places the US second only to Canada on this measure and suggests that, beneath the political noise, business leaders still see climate action as strategically important.

That conviction is also reflected in behavior. More than three quarters (76%) of US businesses say they will take steps to reduce emissions, even if many are now placing less emphasis on "net zero" as a public-facing term. In other words, action is continuing even as the language around it evolves.

The impact of the media and public discourse on how businesses communicate is clear. More than half (55%) of US business leaders say they have changed how they promote or communicate their emissions reduction efforts over the past 12 months in response to political and media skepticism. The politics may have hardened, but corporate behavior has not collapsed.

If anything, many businesses appear increasingly aware that the costs of inaction are rising. 74% of US firms are concerned about the future costs and resilience implications of failing to prepare for climate change, while 75% say the cost of transition is outweighed by the long-term benefits. For many companies, decarbonization is no longer principally an environmental gesture, but rather a business continuity strategy.

The competitiveness question

If climate action is increasingly framed in commercial terms, that is partly because the commercial stakes are becoming clearer.

One of the most striking findings in the research is that 59% of US businesses are concerned about losing competitiveness to overseas firms if the federal government continues to scale back progress on net zero or abandons it altogether. This suggests that many American businesses no longer see climate policy simply as a compliance burden, but as part of staying competitive in a global market where other major economies continue to invest in cleaner technologies, industrial standards and energy systems.

This is also why policy uncertainty is proving so damaging. Three quarters of businesses say uncertainty around net zero policy makes it difficult to invest confidently. For companies making long-term decisions about capital expenditure, procurement, supply chains and facilities, uncertainty can act as a direct barrier to action.

There is, then, a growing disconnect between political rhetoric in Washington and the strategic calculations being made in boardrooms across the country. For all the heat around the term "net zero," many firms are still planning for a world in which decarbonization, resilience and climate adaptation will remain central to economic performance. That long view is reflected in business expectations, as 83% of US business leaders believe net zero will once again become a political priority within the next decade.

The need for greater support

Despite showing commitment, businesses remain clear-eyed about the obstacles in front of them.

Costs remain a significant constraint, and many firms feel their industry is expected to shoulder a disproportionate share of the burden even as the broader cost of doing business remains high. A quarter of businesses expect that economic instability will make progress on net zero more difficult over the next 12 months. More broadly, the transition is still seen by many as financially challenging, particularly in sectors with high energy use, complex supply chains or long investment cycles.

Amid these challenges, the ask of policymakers is for practical support, not abstract encouragement. 84% want greater government financial incentives, while 71% say policy support will make it easier for their business to reach net zero targets by 2050.

As it stands, 77% say state-level policies currently provide more certainty than federal approaches, highlighting that, in the absence of a stable federal framework, many firms are finding greater predictability at the state level. But while state leadership matters, it is not a complete substitute for national clarity.

They are also asking for more specific guidance. A third (32%) of US businesses want clearer standards and more practical, industry-specific support as it would help them act. Many firms no longer need to be persuaded that climate risk matters, but they do need help translating that understanding into concrete operational decisions.

Translating intent into action

The US corporate picture in 2026 is more resilient than the politics might suggest.

American businesses have not abandoned decarbonization but have adapted to a changing environment by becoming more practical in how they talk about it and more strategic in how they position it In many cases, net zero is no longer being presented primarily as a moral imperative but as a strategy to manage volatility, improve efficiency, and strengthen long term competitiveness. That is a significant shift, and in many ways a healthy one. It places climate action at the center of business resilience, rather than at the margins of corporate messaging.

But pragmatism alone will not be enough. If businesses are expected to keep moving, they will need a more supportive operating environment. That means clearer policy signals, stronger incentives, more stable standards and practical help in turning ambition into delivery.

The real story in 2026 is not that American business has turned away from climate action. It is that companies are trying to make it workable in a world that has become more politically fractured, more geopolitically unstable and more economically volatile. For policymakers, the lesson should be simple: business commitment is still there. What is needed now is the clarity and support to turn that commitment into action.