Executive orders recently signed by President Biden put the environment squarely at the heart of U.S. federal policy, and for good reason. The future competitiveness of the U.S. economy is at stake, and climate action is an effective way to boost jobs, prevent future systemic shocks, and secure a prosperous future. Growing evidence shows that investment in “green” industries like electric vehicles and renewables will be a better way to boost GDP as we emerge from the Covid-19 crisis.
What Biden’s Sustainability Agenda Means for Business
Corporations that don’t step up on climate will be left behind.
March 03, 2021
HBR Staff; Pool/Getty Images; Dylan Nolte/Unsplash
Summary.
The Biden administration has put the climate agenda back in the center of U.S. domestic and international policy. Businesses should take note. The author highlights seven implications for business leaders in this new era of U.S. climate leadership: climate regulation is inevitable, delayed action is a business risk, investors will increasingly reward sustainable enterprises, corporate disclosure and reporting on ESG issues will soon be mandatory, carbon pricing is in the pipeline, public investment in clean energy will grow, and corporations can work with a receptive government to transition to net-zero.