In 2025, the global ESG field is showing a new trend of "Eastern rise, Western slowdown", and the multiple challenges in the Western world are slowing down the progress of ESG.
After Trump's return to politics in 2025, his policy direction has had a profound impact on the ESG field.
In terms of energy and environmental policies, as a well-known climate change skeptic, Trump insists that climate change is an "environmental lie" and advocates for "maximizing the use of fossil fuels". As early as his first term in office, he abolished several Obama era environmental regulations, including relaxing new car fuel efficiency and exhaust emission standards, and deprived California of the right to set stricter emission standards. This return, he once again announced the United States' withdrawal from the Paris Agreement and may overturn the environmental policies formulated by the Biden administration, including new car emission standards, while once again revoking California's autonomy in vehicle emissions and energy efficiency. This move reduces the pressure on traditional American car manufacturers to comply with fuel consumption regulations and reduce emissions, boosts the internal combustion engine business, and may lead car companies to adjust their electric vehicle production plans and increase the production of internal combustion engine models, thereby affecting the plans of some states in the United States to ban the sale of fuel vehicles before 2035.
On the economic level, Trump implemented a trade protectionist tariff strategy. On February 1st, he issued an executive order imposing a 25% tariff on imported goods from Canada and Mexico, and a 10% tariff on Chinese goods (although the tariff plans for the first two were subsequently suspended). He once threatened to impose tariffs of up to 60% on all Chinese imported goods, and even threatened tariffs of 200% or even 1000% on Chinese cars. This move hinders the green and coordinated development of the global supply chain. Given the high integration of the global industrial chain, many companies rely on overseas imports for green raw materials and components, and high tariffs increase their costs, which is not conducive to the production and promotion of green products and the exchange and cooperation of global green industries.
In Europe, the EU has implemented strict ESG regulations to combat greenwashing, but the public has expressed dissatisfaction with the increasing number of environmental regulations. Von der Leyen proposed that the regulation of the climate agenda may be relaxed in the new term of office, in order to seek a balance between green goals and improving enterprise competitiveness. At the economic level, the Russia-Ukraine conflict in 2022 triggered an energy and inflation crisis, and major central banks around the world raised interest rates to curb inflation, which hit the high growth technology enterprises favored by ESG funds. The performance of the green energy industry also failed to meet expectations, leading to a low return on ESG investment. Data shows that in the first half of 2024, ESG stock funds had a net outflow of up to $40 billion, with the US market withdrawing $4.4 billion in April. BlackRock, DWS (an asset management subsidiary of Deutsche Bank), and other companies have reduced the issuance of new ESG labeled funds.
Eastern perspective: China leads the acceleration of ESG.
At the policy level, China continues to intensify efforts to promote ESG development. In February 2024, the Shanghai, Shenzhen, and North Stock Exchanges released the "Guidelines for Self Regulatory Supervision of Listed Companies - Sustainable Development Report (Trial) (Draft for Comments)", which combines mandatory and voluntary disclosure methods to construct a framework for sustainable development information disclosure of listed companies, strengthens disclosure requirements related to carbon emissions, and clarifies ESG disclosure issues. Starting from May 1st of the same year, the "Guidelines for Sustainable Development Reporting of Listed Companies" were officially implemented, marking the birth of the first unified, standardized, and practical ESG disclosure standard for A-shares. In late May, the Ministry of Finance released the "Basic Guidelines for Corporate Sustainable Disclosure (Draft for Comments)", marking the official launch of China's sustainable disclosure standard system construction. According to the plan, by 2027, the basic guidelines for sustainable disclosure of Chinese enterprises and climate related disclosure guidelines will be successively introduced; By 2030, the national unified sustainable disclosure standard system will be basically established. These measures will encourage companies to disclose ESG information in a more standardized manner and enhance market transparency.
In addition, the State owned Assets Supervision and Administration Commission of the State Council has issued the "Guiding Opinions on the High Standard Fulfillment of Social Responsibility by Central Enterprises in the New Era", emphasizing the responsibilities and roles of central enterprises in economic, social, and environmental sustainable development, providing clear guidance for central enterprises to practice ESG concepts. Beijing, Shanghai and other places have also successively introduced relevant policies to promote the development of ESG, promoting the deepening of ESG practices at the local level.
Under the trend of "rising in the east and falling in the west", the strategic choices of domestic enterprises are:
1.Building a sound ESG governance system:
Enterprises should establish a comprehensive ESG management framework, set up specialized ESG management departments or positions, and clarify the division of responsibilities. At the same time, formulate long-term ESG strategic plans, integrate ESG goals into the overall development strategy of the enterprise, and ensure the orderly progress of ESG work.
2.Strengthen green technology innovation：
Increase investment in green technology research and development, and overcome green technology challenges through cooperation with research institutions, establishment of internal research and development centers, and other means. For traditional manufacturing industries, utilizing digital and intelligent technologies to improve production efficiency, reduce energy consumption and emissions; For energy companies, accelerate the development and utilization of renewable energy and reduce dependence on fossil fuels. For example, Longi Green Energy continues to invest in photovoltaic technology research and development, promoting the green development of the industry.
3.Strengthen social responsibility：
At the societal level, pay attention to employee welfare, provide a high-quality working environment and career development opportunities, and promote the comprehensive development of employees. Actively participate in public welfare projects such as rural revitalization and education poverty alleviation, and give back to society. Alibaba supports the sales of agricultural products through e-commerce platforms, promotes rural economic development, and carries out various public welfare activities to fulfill corporate social responsibility.
4.Promote green collaboration in the supply chain：
Enterprises should play a leading role in driving upstream and downstream enterprises in the supply chain to jointly practice ESG concepts. Establish an ESG evaluation system for suppliers to assess and supervise their environmental performance and social responsibility fulfillment, and promote the green transformation of the entire supply chain. Xiaomi has put forward clear requirements for suppliers in terms of the use of environmentally friendly materials and the protection of labor rights, which has improved the ESG level of the supply chain.
Under the trend of "rising in the east and falling in the west" in 2025, although the ESG field is facing controversy, it also harbors unlimited opportunities. Enterprises should keep up with the pace of the times, actively respond to ESG challenges, make strategic choices that are in line with their own development, and contribute to global sustainable development while achieving their own sustainable development.