The political landscape in the United States has created a challenging environment for corporations committed to climate initiatives. The Trump administration’s withdrawal from the Paris Agreement and the rollback of emissions regulations have prompted some companies to reconsider their climate commitments. Nonetheless, many global corporations are choosing to invest in clean technology, defying political trends.
Some firms, such as Wells Fargo, have indeed scaled back their climate targets. The bank recently abandoned its goal for financed companies to reach net-zero emissions by 2050, citing a lack of necessary conditions like policy certainty and consumer behavior. Similarly, BP informed investors that earlier expectations for a rapid transition to renewable energy were “misplaced” due to the shifting regulatory environment.
In contrast, other major companies, including the world’s largest retailer, Walmart, are maintaining their climate policies. These firms recognize the long-term benefits of investing in a sustainable future, despite the current political climate. While some companies have chosen to pursue their initiatives more quietly to avoid scrutiny, they continue to face pressure from various stakeholders, including state and local governments, the European Union, and consumers, all advocating for reduced environmental impacts.
State and Global Regulations Drive Corporate Action
The influence of state regulations is significant for multinational corporations operating in the United States. California, with its ambitious climate laws, serves as a prime example. The state has extended its cap-and-trade program, designed to decrease corporate emissions, and set binding targets for net-zero greenhouse gas emissions by 2045. This proactive stance contrasts sharply with the federal government’s approach under the Trump administration, positioning California as a crucial regulator for global businesses.
Additionally, other states have joined California in committing to the goals of the Paris Agreement through the U.S. Climate Alliance, a bipartisan coalition of 24 governors representing over half of the U.S. population. Some states are also considering laws that require polluters to pay for their contributions to climate change, with funds directed toward adaptation projects.
Outside of the United States, countries like those in the European Union are implementing strict climate regulations. The EU aims to cut emissions by at least 50% by 2030, introducing binding climate reporting rules for large corporations and carbon taxes on imported goods. The EU’s “Fit for 55” framework further aims for a 55% reduction in emissions by 2030. While timelines for some regulations have shifted, the underlying momentum toward sustainability remains strong.
Investment in Clean Technology: A Strategic Move
In addition to regulatory pressures, companies are increasingly recognizing the financial benefits of investing in clean technology. Since 2016, global investments in clean energy have surpassed those in fossil fuels, with nearly twice as much funneled into clean energy by 2025. The climate tech sector has yielded total returns of nearly 200% from 2014 to 2024, indicating a robust growth trajectory.
A notable example is Walmart’s Project Gigaton, launched in 2017 with the goal of cutting 1 gigaton of greenhouse gas emissions from its supply chain by 2030. The initiative has already exceeded its target six years early, thanks to collaboration with major suppliers like Nestle and Unilever. Despite these achievements, Walmart’s overall emissions have continued to rise alongside its business growth. However, the company’s emissions intensity—carbon produced per dollar of revenue—has improved by roughly 47% over the last decade.
The rapid expansion of artificial intelligence (AI) is creating a paradox for tech companies, forcing them to confront their climate priorities more explicitly. With global data centers projected to consume more electricity than Japan by 2030, tech leaders are moving beyond reliance on renewable credits and focusing on rigorous carbon accounting. Reports from major firms like Microsoft and Google reveal significant increases in total emissions, driven largely by the growth of data centers.
As climate risks rise and political pressures persist, corporations must navigate a complex landscape. While some oil and gas companies continue to invest in fossil fuel development, they are also forecasting renewable energy growth and investing in clean technology. The corporate leaders I interviewed emphasized the importance of aligning sustainability efforts across their businesses to respond effectively to both domestic and global pressures.
Consumer expectations are shifting as well. A 2025 survey by Getty Images found that over 80% of respondents across 25 countries expect clear environmental, social, and governance (ESG) guidelines from businesses. This trend is corroborated by U.S. market research indicating that 71% of surveyed food and beverage consumers consider environmental impacts in their purchasing decisions.
As we approach 2026, the divergence between political deregulation and the demands of an environmentally-conscious consumer base is creating a new era of corporate pragmatism. The world’s largest corporations are learning that they cannot ignore the substantial energy and infrastructure requirements of the AI Age while also addressing the expectations of their stakeholders.
In this evolving landscape, companies that prioritize building carbon-free foundations will not only comply with existing and future regulations but also position themselves for success in a rapidly changing market.
