What’s unfolding isn’t just a shift in policy — it’s a shift in market gravity. So, the question isn’t whether companies agree with these changes — it’s whether they’re ready for them.
On January 20, the current administration signed an executive order withdrawing the United States from the Paris Agreement for the second time. It also halted funding for clean-energy projects under the Inflation Reduction Act and the Bipartisan Infrastructure Law, disrupting billions in private sector investment and thousands of jobs — many in Republican-led states, where clean-energy and CDR technologies have driven local economic growth.
These moves introduce new uncertainty for businesses that have already made sustainability a core part of their operations and long-term planning. At the same time, the rest of the world is treating environmental performance as a proxy for business resilience. For US companies, this moment requires more than waiting for policy to catch up — it’s about strategic positioning.
China’s cleantech strategy is reshaping global business
While the US stalls, China is advancing its long-term, sustainable economic vision. In 2024 alone, the country invested $818 billion in clean energy, electric vehicles, battery technology and grid modernization. Beyond energy, it has secured dominance in critical minerals including nickel, cobalt and lithium — resources essential for energy storage, electric vehicles and advanced manufacturing. China now manufactures over 75 percent of the world’s lithium-ion batteries and more than 80 percent of solar panels. It extends its influence into clean-energy markets worldwide through trade agreements and funding programs.
Global markets leaving the US behind
China isn’t the only nation embedding sustainability into economic policy. The European Union is implementing aggressive policies including the Corporate Sustainability Reporting Directive (CSRD) — requiring some 50,000 companies worldwide to report on their biodiversity, climate and governance impacts. And trade policies such as the Carbon Border Adjustment Mechanism (CBAM) will impose financial penalties on high-carbon imports, raising costs for companies that fail to meet sustainability criteria.
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What’s unfolding isn’t just a shift in policy — it’s a shift in market gravity. Global sustainability regulations and investments are driving where capital flows, how trade operates and which companies are seen as credible long-term players. The question isn’t whether companies agree with these changes — it’s whether they’re ready for them.
This shift extends beyond regulations. Investors managing $24 trillion in assets have committed to integrating nature risk into financial decision-making. As biodiversity loss and water stress intensify and compromise corporate profitability, nature-related financial disclosures will become critical in risk management.
For businesses that operate internationally, these regulations aren’t optional. Even if US federal policy steps back, global markets are moving forward — and companies that fail to adapt will struggle to compete.
Nature risks: the next business challenge
Until now, much of corporate sustainability strategy has centered on energy efficiency and carbon reduction. But as companies make these adjustments, they are now being asked to consider their broader dependencies on nature — access to water, reliance on biodiversity and long-term resource stability.
Global supply chains are already disrupted by water stress, biodiversity loss and land degradation — with financial impacts expected to reach $2.7 trillion annually by 2030. Companies that fail to quantify these risks will face higher costs, increased regulatory scrutiny and reputational damage. Meanwhile, firms proactively addressing biodiversity risks will position themselves for long-term stability, lower capital costs and greater investor confidence.
The risks of waiting
Before the 2024 election, the Biden administration’s clean-energy policies helped drive $240 billion in private investment across 44 states. That investment created jobs, boosted manufacturing and expanded domestic supply chains for wind, solar and battery storage.
Now, federal uncertainty is stalling progress. But businesses don’t have to wait for Washington to act. Companies that assess their nature risk strengthen supply chains and align with global sustainability frameworks to position themselves for long-term success. Those that don’t will flail in an international market that increasingly rewards transparency, efficiency and sustainability.
What smart companies are doing now
Forward-thinking companies that adapt today will have a competitive edge in the clean economy of tomorrow. These companies are:
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Quantifying nature risk as a core business metric. Investors expect transparency on environmental dependencies, and financial institutions are embedding nature risk into investment decisions.
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Integrating sustainability into governance and financial planning. Aligning with international frameworks including CSRD and TNFD ensures compliance, improves investor confidence and reduces regulatory risk.
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Strengthening supply chain resilience. Companies are securing access to critical materials, water and biodiversity resources to maintain stability and cost efficiency.
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Investing in nature-positive strategies. Leading firms are directing capital toward sustainable growth opportunities that enhance resilience, reduce costs and create new business value by protecting biodiversity.
Markets are shifting. The next decade of business will be defined by companies that recognize sustainability as an economic imperative, not an optional commitment. As global markets embed resilience into industrial policy and long-term investment strategies, companies that embrace these changes will be best positioned to lead the modern industrial revolution.
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Megan Pillsbury
Founder & CEO, Dunya Analytics
Megan Pillsbury is an engineer, entrepreneur and innovator on a mission to reinvent the private sector. She is founder and CEO of Dunya Analytics — a leading digital platform for science-based risk analytics in biodiversity and nature.
Published Apr 7, 2025 8am EDT / 5am PDT / 1pm BST / 2pm CEST
