Published November 27, 2025 in Sustainability • 5 min read • 
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As progress on global sustainable development advances, there are periods when economic, social, political, or environmental events drive cross-scale dynamics that reverse progress. These shocks act as a challenge for leaders – a moment when executives can either reaffirm their sustainability agendas or back down from their commitments.
Take, for example, the corporate response to the COVID-19 pandemic. According to the Sustainable Development Goals Report 2022, the pandemic, combined with the climate crisis and conflict in Ukraine, reversed four years of progress on poverty alleviation. Millions were driven back into extreme poverty, and the gender inequality gap widened. Some executives took generous bonuses before filing for bankruptcy as non-essential businesses were forced to close their doors. In essential businesses, leaders sent frontline workers to stores before protective gear was readily available to keep profits afloat.
Today, we’re witnessing another period of backsliding. President Donald Trump’s administration has repealed and revoked hundreds of policies in the US designed to advance social and environmental sustainability. Trump signed an executive order eliminating diversity, equity, and inclusion considerations in government hiring processes, triggering many companies to also rescind their DE&I-related programs in fear of a political backlash. According to Climate Action Tracker (CAT), an independent project that measures policy against commitments in the Paris Agreement, the administration has taken more than 100 actions that threaten climate progress. Many of these are related to the energy transition and will potentially slow it down.
In general, Trump’s policy changes favor fossil fuels and disincentivize renewables. His One Big Beautiful Bill Act – aimed at restoring energy independence – lifted restrictions on federal lands and water for drilling and financially incentivized oil, gas, and coal. Trump told Fox News that wind turbines were “destroying our place” and “these solar things” are “ugly as hell.” The tax credits for wind and solar energy, which have played such a crucial role in securing their adoption and scaling their use, are being phased out.
Such periods of backsliding represent a stern test of sustainability leadership in business. During these moments, executives have to make choices: abandon sustainability, maintain their efforts, or double down on commitments.
Companies taking advantage of shortsighted financial gains put themselves and others at risk ... the effects of climate change are already being felt through an increasing number of natural disasters.
In response to Trump’s changes, big oil and gas companies, such as BP, cut investments in renewables. Five years ago, BP announced it would lead the energy transition by reducing its oil and gas production by 40% by 2030. However, the profit margins from renewables were not as lucrative as predicted, and the strategy was not seen favorably by investors. Amid shifting policy changes in the US, BP formally retreated from its renewable energy plan in February. It increased oil and gas investments by 20% and decreased investments in renewables by $5bn.
BP’s reversal favors increasing short-term returns for shareholders at the expense of the planet. Companies taking advantage of shortsighted financial gains put themselves and others at risk. Fossil fuels contribute to global warming, and the effects of climate change are already being felt through an increasing number of natural disasters. Companies retreating from their climate agendas exacerbate these dangers, putting their operations and supply chains at risk both in the short and long term. They also imperil the long-term survival of the company, as the energy transition will eventually come full force, and they will find themselves lagging behind other industry leaders. Investing now in renewables is particularly important due to long-term energy infrastructure lock-ins.
Despite current backsliding, Xcel Energy, which provides energy to eight US states, has decided to maintain its commitments to renewable energy, including a goal to provide 100% carbon-free energy by 2050. “We remain steadfast in our commitment to provide reliable, affordable, sustainable, and safe energy to the millions of people we serve,” said CEO Bob Frenzel. “We are particularly proud of the progress we have made on our journey to a carbon-free electricity future.”
It may be difficult to maintain sustainability commitments during periods of backsliding, as companies may need to forgo short-term financial gains. However, these companies maintain a clear brand image and send signals that they are genuinely committed to the energy transition. They recognize the importance of a long-term sustainability agenda in creating a more stable operating environment and warding off the risks of climate change.
The Danish multinational energy company, Ørsted, recently decided to take an even stronger lead in the energy transition, despite backsliding elsewhere. Ørsted, previously one of Europe’s largest fossil fuel companies, has transitioned to clean energy. Although policy changes are making some projects more expensive, the company is pushing ahead where possible. This boldness has not come without consequences – its shares dropped (but later recovered) as investors worried about cuts in clean energy incentives and the stability of the renewables markets.
Companies that increase their commitments during periods of backsliding stand out as true leaders in sustainability. They maintain a clear brand image as sustainability pioneers, remain steadfast at the forefront of the energy transition, and future-proof their businesses. Trump’s policies may slow down some aspects of the energy transition and create short-term financial risks for those who counter his agenda. However, experts agree that his actions are unlikely to derail the transition altogether. Companies doubling down on sustainability will retain a long-term competitive advantage.
According to the Sustainable Development Goals Report 2025, none of the 17 SDGs or sub-targets are on track to be met by 2030. Six of the nine planetary boundaries have been crossed, indicating that humans are exerting immense pressure on the Earth’s critical systems. The consequences are increasingly likely to generate serious risks such as climate-related events, food insecurity, and pollution.
Now is not the time to give in to backsliding. The world needs strong sustainability leaders who demonstrate the courage to stand by their sustainability commitments when the going gets tough.
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