Trump is pushing companies to abandon climate and ESG goals!

Trump is pushing companies to abandon climate and ESG goals!

A worrying trend is emerging in the current political landscape: retreat from ESG (environmental, social and governance) goals is increasing worldwide, influenced by Donald Trump's rhetoric. A report from fr.de illustrates that Trump's “Drill, baby, drill!” policy is causing many companies to either question their climate and diversity goals completely or even withdraw from important climate agreements.

This trend is also evident in the actions of major financial institutions. Large banks, including German institutions, are increasingly increasing their financing for fossil fuels. The withdrawal of sustainability goals could not only have short-term effects, but is also associated with long-term legal risks, which are particularly faced by banks and investing companies that focus on sustainable investments.

Increase in financing for fossil fuels

The report shows that Deutsche Bank is increasing its funding for fossil fuel businesses from $9.7 billion in 2022 to $14.3 billion in 2023. Commerzbank has also increased financing for fossil projects from $2.6 billion in 2022 to $4.5 billion in 2023. This comes in the context of a worrying $162 billion increase in fossil fuel financing from 2023 to 2024, according to the Banking on Climate Chaos report. US banks alone lent $289 billion to fossil fuel industries, equivalent to a third of global financing.

These changes have led to more banks, particularly in West Virginia and Oklahoma, excluding ESG-focused banks from public tenders. In Germany, companies such as Allianz and Munich Re are also saying goodbye to important climate initiatives. The reduction of equality goals at SAP is another example of resistance to ESG principles.

Appeal for regulation

The current situation calls for greater regulation and supervision by government authorities to prevent the retreat of sustainability goals. Consumers are being urged to pay more attention to sustainability criteria when choosing their banks to break this worrying pattern. Given these developments, it is crucial that Europe now takes the lead in sustainable investment and climate action to counteract the downward trend. An article by Financial Mirror highlights the need for Europe to take the initiative and set new standards for green investments.

Overall, it remains to be seen how the political and economic landscape will continue to change under the influence of these developments. However, experts agree that without a rethink in the financial sector and among political decision-makers, the sustainability goals are in serious danger.