← Back to Teaching Sustainability
Tuba Korkmaz
March 27, 2025
Climate policy is evolving, and for businesses, it's not just a matter of compliance anymore. It's a strategic concern.
Over the past year, we've seen a shift in how governments regulate climate disclosures and environmental impact. From loosened federal regulations in the U.S. to bold state mandates and growing global expectations, the path forward isn't linear. But one thing is clear: companies that prepare early and adapt thoughtfully will be the ones that stay ahead.
At the federal level in the U.S., some recent changes have reduced environmental oversight. For example, the Environmental Protection Agency (EPA) is now allowing certain industries to request exemptions from air pollution rules via email, a major rollback in how emissions are regulated. At the same time, the Securities and Exchange Commission (SEC) has paused its defense of a climate disclosure rule, which would have required public companies to report climate related risks and emissions in their financial filings.
But while federal actions may suggest a lighter regulatory touch, that doesn't mean climate expectations are easing overall. In fact, they're growing stronger, just coming from different places.
Several U.S. states, most notably California, are pushing forward with their climate regulations. California's new SB 253 and SB 261 laws mandate detailed climate disclosures from large companies operating in the state, regardless of where they're headquartered. These rules include Scope 1, 2, and eventually Scope 3 emissions—the full chain, from operations to supply.
New York, Illinois, and Colorado are working on similar bills. What this means for businesses: if you're operating across multiple states, it's safest to align with the most stringent rules now, rather than risk falling behind.
Climate reporting might initially seem like just another item on the compliance checklist, but it's quickly evolving into something far more valuable—a powerful lens into a company's operations, risks, and opportunities.
Transparent reporting can unlock a range of benefits:
Some industries are feeling the impact of evolving climate policies more than others. In energy and utilities, companies continue to monitor emissions closely to meet the demands of international buyers, many of whom operate under stricter environmental standards. Aviation faces similar pressure, with European airlines struggling to meet sustainable fuel targets due to high costs and limited availability.
In finance, investors are now expected to disclose climate risks, prompting them to demand the same transparency from companies in their portfolios. Meanwhile, consumer goods brands are being pushed to understand and report Scope 3 emissions, which cover the full life cycle of a product—from sourcing to disposal.
With the climate policy landscape evolving rapidly, companies can no longer afford to wait for mandates before taking action. A critical first step is establishing a clear emissions baseline by measuring Scope 1, Scope 2, and, where possible, Scope 3 emissions.
Adopting established reporting frameworks such as the Greenhouse Gas Protocol, TCFD, or CDP helps standardize disclosures, build stakeholder trust, and prepare for compliance across multiple jurisdictions. Climate strategy also requires cross-functional collaboration—finance, operations, procurement, marketing, and HR all play a role.
Supply chain engagement is especially critical as Scope 3 reporting gains momentum. Early collaboration with key vendors on emissions data and sustainable practices will make future reporting significantly smoother. Businesses should also invest in digital tools like Aclymate that automate tracking, improve accuracy, and deliver audit-ready reports.
Once a baseline is in place, companies should set science-aligned emissions targets and publicly disclose their progress. Clear, measurable goals demonstrate leadership and help build trust with investors, customers, and employees.
Climate policy may be shifting, but the direction of business is clear: transparency, accountability, and sustainability are fast becoming the baseline, not the bonus.
Regulatory changes might vary by state, country, or administration, but your customers, investors, and supply chain partners are all aligned on one thing: they want to work with companies that understand their environmental impact and are doing something about it.
That's not just about being compliant. It's about being competitive. Climate reporting isn't a setback—it's a strategic advantage.
