By Doug Parker
As the Trump administration begins, it’s important to consider the likely, and in some cases certain, shifts in the federal legislative, regulatory, and enforcement landscape, especially from the environmental enforcement perspective. My years at the U.S. Environmental Protection Agency and observing the ebb and flow of policy provide a backdrop for what we might expect in the coming months and over the next four years.
The Immediate Future Under Trump II
Under Trump II, enforcement decisions will initially pause as key second- and third-tier appointees, such as assistant attorneys general and EPA assistant administrators, take time to settle into their roles. This will likely have a more significant impact on civil enforcement, where political authority traditionally is more concentrated and active in shaping policy and cases.
Trump’s cabinet nominations of Lee Zeldin and David Fotouhi for EPA administrator and deputy administrator signal a definitive shift in the agency’s approach and priorities, favoring deregulation, reduced federal oversight, and policies focusing on business innovation, economic growth, and energy independence. Looking through this lens, it is clear that the “whole of government approach” to climate is over, and we can anticipate quick changes to EPA’s national enforcement and compliance initiatives, with climate and environmental justice being removed as priorities.
The Role of the States and Private Sector
Similar to the first Trump administration, we are likely to see greater deference to states in areas where they have delegated authority, such as enforcement of the Clean Water and key portions of the Clean Air Act. This shift could alter how enforcement responsibilities are distributed and may coincide with discussions of reorganizing EPA’s civil enforcement program. Such a move would be a significant bureaucratic challenge with uncertain outcomes.
Nonregulatory drivers and megatrends are also reshaping the landscape. For example, technological innovations and cultural shifts make company operations and their environmental impacts more visible than ever. The public, especially younger generations, increasingly considers environmental performance in economic and purchasing decisions. Companies must understand that their environmental performance will affect their overall success, regardless of policies or enforcement priorities at EPA and DOJ.
The Future of ESG
As for environmental, social, and governance (ESG) factors, the conversation is far from over, although we’ve already seen a shift in focus. With increased attention on environmental innovations, social metrics, including initiatives like DEI, are already being dramatically pared back. This shift reflects both the demand for measurable outcomes that meet public expectations and investor priorities. In turn, companies must be prudent and align environmental and safety performance with broader corporate goals.
Trump’s nomination of Paul Atkins as the Chair of the Securities and Exchange Commission indicates a near-certain rollback of recent climate-risk disclosure rules, which have already faced legal challenges and are currently stayed. Although mandatory ESG disclosures may be deemphasized, companies must remain vigilant to avoid enforcement actions targeting greenwashing claims.
However, the need for accurate, data-backed ESG reporting remains critical. This has always been a market-based movement; companies that fail to adapt risk falling behind their peers and competitors. Investors, consumers, employees, and independent third-party reviewers will continue scrutinizing sustainability efforts more intensely than ever, demanding credible, data-backed outcomes.
Closing Thoughts
Be ready to see a continued rebranding of ESG, with a shift back to broader sustainability themes, goals, and communications. Also, look for a stronger focus on traditional EHS metrics from regulators and the public in the months and years ahead, who increasingly expect high-quality, verifiable data when companies are touting their sustainability efforts. At Ecolumix, we are committed to monitoring these developments closely, ensuring we are prepared to help companies navigate these changes and provide the reliable data they need.
