ESG in 2025: Amid Turbulence, Focus on the Fundamentals

2025 is proving to be a bumpy ride for environmental, social, and governance (ESG). The Trump Administration has issued a number of executive orders impacting ESG topics, including a rollback of the Biden Administration’s climate change policies, U.S. withdrawal from the Paris Agreement, and more. In the European Union (EU), efforts to consolidate reporting requirements have resulted in a two-year delay in reporting for certain EU-based companies. At the same time, there is great debate about what ESG is and is not.

In this article, Sidley partner Heather Palmer argues that by focusing on the fundamentals – compliance, risk mitigation, and long-term strategy—companies will be better positioned to effectively manage ESG-related risks and opportunities over the long term, making the company more resilient to change, even in times of transition.

Reprinted with permission from the June 14, 2025 of CORPORATE COUNSEL © 2025 ALM Global, LLC. All rights reserved. Further duplication without permission is prohibited.