Climate Crossroads

ensuring progress in an era of uncertainty

Across the media, there has been growing concern that incoming governments may reverse positive climate progress and policies – concerns that further escalated when President Trump announced he would withdraw the US (again) from the Paris Climate Agreement. At the same time, NASA confirmed 2024 was the hottest year on record – and the last several months have turned eyes onto climate disasters like the wildfires in California, devastation from Hurricane Helene, landslides in Nepal, and the earthquake in Japan.

To top it off, the Science Based Targets initiative (SBTi) recently removed over 200 large businesses that had pledged net zero goals but were not making enough progress to meet the stated ambition. A common thread in what we have seen within the results of our Scope 3 Maturity Benchmark is the gap between corporate ambition and the action necessary to take practical steps that reduce emissions.

Amidst all of this, there is reason to remain hopeful. Despite politics, organizational budget challenges, and not making progress to decarbonize as quickly as we’d like, we’ve found solace in knowing that organizations span boundaries in a way that countries don’t.

In certain large countries, legislation is forthcoming that supports greater carbon transparency within trade and has repercussions for organizations unwilling to adapt. Varying year to year, the EU typically represents about half of the world’s top 10 import countries. Beginning in 2026, the EU’s CBAM (Carbon Border Adjustment Measurement) will impose CO2 emissions tariffs on certain imports – causing EU importers to purchase certificates to cover their CO2 emissions. This will force some countries with less stringent requirements (like China, or India), to quickly shift their low-cost focus to include a balance of carbon reduction – and producers are already exploring greener production methods. The UK is planning to implement a similar carbon import tax by 2027.

Amongst other countries, the US is a top importer for EU countries and the UK. Regardless of US politics, Forbes data shows that 8 of the top 10 companies globally by market cap are US companies. If the US would like to remain a viable global trade partner, US organizations trading globally will need to embrace the coming changes.

It’s easy to get discouraged when some governments aren’t moving as quickly, but any organizations that operate in a global landscape will need to rise to the highest level of accountability or potentially lose large portions of their market share.

To navigate these complex changes and ensure your organization remains competitive, it’s crucial to stay informed and proactive. Reach out to us for expert guidance on how to align your business strategies with evolving global standards and leverage opportunities for sustainable growth. Our team is here to help you turn challenges into advantages and secure your place in the future of global trade.