Exclusively: not only Dei – ESG initiatives are presented in the Trump era and 80 % of companies say they are modifying their policies

Dei may get all the attention these days, but another shortcut also faces a recovery.

The initiatives of companies, social and governance (ESG) have been a goal to increase general and political scrutiny over the past few years, but efforts have intensified during the second Trump administration. Nearly 80 % of companies adjust their ESG policies to alleviate legal and political risks, according to New report From the Conference Council, which included 125 senior executives for sustainability and ESG in American and multinational companies.

“There was a lot of very sudden political fluctuations,” says Andrew Jones, the main researcher at the Governance and Sustainability Center in the Conference Council and the author of the report. luck. “Our member companies are struggling with” How can we move in this environment? “

But while the majority of companies amend their ESG policies, only 6 % of reports are making major changes. Instead, most of them implement secondary modifications (45 %) or moderate (29 %), according to the report. Jones says the councils and senior leaders give priority to the defense of politics, the return on investment (ROI), and the compatibility of the value of the institution, rather than the widespread expansion of the initiatives or framework led by values.

Jones said: “We have seen this in both Dei and ESG – a much closer legal review, a kind of compliance mentality,” Jones said.

Since he took office, President Trump has expanded the scope of supervision of the Environmental Protection Agency (EPA) and Excluded The base of the Biden era, which companies must detect climate -related risks and greenhouse gas emissions. It also signed Executive order Specifically targeting countries with ESG policies, entitled “Protection of US Energy from Passing the State”.

But while the federal regulation of the procedures for companies climate may fade, some states are doubled, which leads to a patching approach. This may be the reason that the ESG fragmentation increased is a great concern for ESG leaders. Almost half of this regiment is concerned about how to expand the gap between federal, state and international policy to complicate compliance and alignment.

“When you talk about states like California and New York, every company operates there. [their policies] Jones says: “Federal rules become a reality, then, at the same time, all these multinational rules [companies] It is subject to new rules that come out of Europe. Now, the picture is really unconfirmed. “

This story was originally shown on Fortune.com