Today’s ESG Updates:
- Trump Rejects UN Global Goals: The U.S. government officially rejects UN global goals to tackle climate change.
- Oil Prices Fall Due to Tariff Uncertainty: Oil prices decline amidst U.S. import tariffs and OPEC+ countries increasing output
- China Imposes Retaliatory Tariffs on U.S. Agricultural Imports: Agricultural tariffs range from 10-15% for key farm goods
- Private Equity is Adapting to a Changing Political Climate: ESG-driven funds are struggling to keep up with constant regulatory changes.
Trump Administration rejects and denounces UN Sustainable Development Goals
At the UN General Assembly last week, U.S. representative Edward Heartney denounced U.S. support for the UN Sustainable Development Goals (SDGs) and the 2030 Agenda. Heartney described the UN goals as “adverse to the rights and interests of Americans,” making the U.S. the first of 193 UN member nations to renounce its commitment to the SDGs. The 17 SDGs include efforts to eliminate poverty, create sustainable cities and communities, and take urgent action to combat climate change. ESG solutions help companies track and meet sustainability targets in a changing regulatory environment.
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Further reading: In 2015, Obama committed the US to achieving UN global goals by 2030. Trump just rejected the goals
Oil prices are down due to concerns over US import tariffs
Oil prices have fallen due to concerns over U.S. import tariffs affecting global economic growth and fuel demand, coupled with rising output from major oil-producing countries (OPEC+). Brent crude dropped to $70.30 a barrel, while U.S. West Texas Intermediate crude was at $66.96. The decline follows tariffs imposed by Trump on key oil suppliers, and concerns over U.S. growth and potential lifting of sanctions on Russia.
Photo Credit: Timothy Newman
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Further reading: Oil prices slip as tariff uncertainty keeps investors on edge
China escalates the trade war by imposing retaliatory tariffs on US farm goods
China has imposed retaliatory tariffs on $21 billion of U.S. agricultural imports, including products like soybeans, pork, and wheat, in response to U.S. tariffs. This move makes U.S. goods less competitive, likely driving up prices and reducing availability of these staple foods. As a result, U.S. businesses may face new ESG challenges, struggling to source sustainable products amid disrupted supply chains.
Photo Credit: Glenn Carstens-Peters
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Further Reading: China’s Tariffs on U.S. Agricultural Products Take Effect
Private equity is adapting to uncertainties with ESG amidst changing political climate
With shifting sentiment in the U.S. government and varying sustainable development goals worldwide, private equity firms are struggling to keep up. GPs are searching for a “middle ground” in an unpredictable political landscape, with many now opting for sustainability-adjacent investments rather than full ESG commitments. Despite the Trump Administration’s anti-ESG statements and policies, the LPs that are committed to sustainable investing will find avenues to do so. ESG tools can help businesses navigate evolving global reporting standards.
Photo Credit: Joshua Mayo
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Further reading: GPs Straddle a Continental Divide on ESG
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Matthew TenBruggencate
