Global companies are still committing to protect the climate – and they’re investing big money in clean tech
In the wake of shifting political landscapes and evolving climate policies, multinational corporations are navigating a complex web of pressures and opportunities in their efforts to address climate change. While some companies, like Wells Fargo and BP, have retreated from ambitious climate commitments citing uncertainties in policy and technology, others, including industry giant Walmart, remain steadfast in their pursuit of sustainability. Walmart, for instance, has made significant strides in its renewable energy initiatives, with nearly half of its global operations powered by renewable sources as of 2025. The company’s Project Gigaton aims to reduce supply chain greenhouse gas emissions by one gigaton by 2030, engaging major suppliers like Nestlé and Unilever to implement practical measures that have already helped meet targets ahead of schedule. This commitment not only strengthens Walmart’s market position but also sets a precedent for accountability across its vast supply chain.
The dynamics of climate action among corporations are further influenced by state regulations and international agreements. States like California, which have enacted stringent climate laws, are leading the charge in setting ambitious emissions reduction targets, compelling multinationals to adapt or risk falling behind. The U.S. Climate Alliance, a coalition of states committed to upholding the goals of the Paris Agreement, exemplifies how regional policies can drive corporate behavior. Furthermore, the European Union’s binding climate reporting rules and carbon taxes illustrate the global movement toward stricter climate accountability. As companies face increasing pressure from governments, customers, and investors, they recognize that sustainable practices can also yield financial benefits. Investment in clean technology has surged, outpacing fossil fuel investments, as corporations seek to capitalize on the growing demand for sustainable solutions.
Looking ahead, corporate leaders are increasingly aligning their sustainability efforts with their overall business strategies, recognizing that long-term viability is intertwined with environmental stewardship. Despite ongoing investments in fossil fuels, many companies are also forecasting a rapid transition toward renewable energy and are actively investing in clean technology. By integrating sustainability into their core operations, businesses not only enhance their reputations but also prepare for the inevitable regulatory and market shifts that demand greater accountability. As climate risks escalate, the dual pressures of regulatory compliance and consumer expectations will continue to shape the corporate landscape, pushing multinationals to innovate and adapt in their quest for a more sustainable future.
Electric delivery vehicles powered by renewable energy are helping several multinationals lower their emissions.
Mustafa Hussain/Getty Images
The Trump administration has given corporations plenty of convenient excuses to retreat from their climate commitments, with its moves to withdraw from the
Paris Agreement
, roll back emissions regulations, and scale back clean energy incentives.
But will the world’s largest corporations follow its lead?
Some multinational companies have indeed scaled back. For instance,
Wells Fargo dropped
its goal for the companies the bank finances to reach net-zero emissions by 2050, saying the conditions necessary for meeting that goal, such as policy certainty, consumer behavior and the pace of clean technology development, hadn’t fully materialized. Oil giant BP told investors that earlier optimism about a
fast transition to renewable energy was “misplaced
” given the changing regulatory environment.
However, many others, including the
world’s largest retailer
, Walmart, aren’t trading their long-term risk planning for Washington’s focus on short-term
cost savings
. They are continuing their climate policies,
but often doing so quietly to avoid scrutiny
.
These companies still face ongoing pressure from state and local governments, the European Union, customers and other sources to reduce their impact on the climate. They also see ways to gain a competitive advantage from investing in a cleaner future.
Nearly half of the energy powering Walmart’s vast global operations comes from renewable sources in 2025, like this solar plant atop a store in Yucca Valley, Calif.
AP Photo/Ringo H.W. Chiu
As a professor of economics and public policy, I study what motivates global businesses to engage in environmentally friendly behavior. For my new book, “
Corporations at Climate Crossroads
,” I interviewed executives and analyzed corporate climate actions and environmental performance of
Global 500
and
S&P 500
companies over the past decade.
These companies’ climate decisions are
driven by a complex interplay
of pressures from existing and future laws and the need to earn goodwill with employees, customers, investors, regulators and others.
States wield influence, too
In the U.S., state climate regulations affect multinational corporations. That’s especially true in California – the
world’s fourth largest economy
and the state with the
largest population
.
While President Donald Trump dismantles U.S. climate policies, California has moved in the opposite direction.
California’s newly enacted climate laws
extend its cap-and-trade program
, now called “cap and invest,” which is designed to ratchet down corporate emissions. They also lock in binding targets to reach net-zero greenhouse gas emissions by 2045. And they set clean-power levels that rival the
Europe Union’s Green Deal
and outpace most national governments.
Other states have joined California in committing to meet the goals of the international Paris climate agreement as part of the
U.S. Climate Alliance
. The
bipartisan coalition of 24 governors
, from Arizona’s to Vermont’s, represents over half of the U.S. population.
Several states have been
considering “polluters pay” laws
. These laws would require companies to pay for their contributions to climate change, with the money going into funds for adaptation projects.
Vermont and New York passed
similar laws in 2024.
Climate laws still apply in Europe and elsewhere
Outside the U.S., several countries have climate regulations that multinational companies must meet.
The European Union aims to cut its emissions by at least 50% by 2030 through policies including binding
climate reporting rules
for large corporations and
carbon taxes for goods entering the EU
, along with
initiatives to support innovation and competitiveness
in clean energy and green infrastructure.
Companies also face emissions reporting requirements in the
United Kingdom
,
New Zealand
,
Singapore
,
California
and cities like
Hong Kong
. Timelines for some of those laws have shifted, but they’re moving forward.
The International Court of Justice also issued a recent
advisory opinion
establishing that countries around the globe have a
legal obligation to protect the climate
. That decision may ultimately increase pressure on global businesses to reduce their contributions to climate change.
Multinationals put pressure on supply chains
Multinational companies’ efforts to reduce their climate impact puts pressure on their suppliers – meaning many more companies must take their climate impact into consideration.
For instance, U.S.-based Walmart operates over 10,000 stores across
19 countries
and is the largest single buyer of goods in the world. That means it faces a wide range of regulations, including tracking and reducing emissions from its suppliers.
Given its enormous purchasing volume, Walmart’s procurement standards ripple through vast supply chains. In 2017, it launched Project Gigaton, aiming to cut 1 gigaton of supply-chain greenhouse gas emissions by 2030. Suppliers including Nestle, Unilever, Coca Cola, Samsung and Hanes helped the company
reach its target six years early
through practical measures such as boosting energy efficiency, redesigning packaging, and reducing food waste.
Walmart did
push back the deadlines
for two of its more ambitious emissions reduction targets in 2025. At the same time, almost half of its electricity worldwide came from renewable energy in 2024, its emissions per unit of revenue fell, and it is working toward zero emissions from its operations by 2040.
There are profits to be made in clean tech
In addition to facing pressure from buyers and governments, companies see profits to be made from investing in climate-friendly clean technology.
Since 2016, investments in clean energy have
outpaced that of fossil fuels
globally. This trend has only hastened, with nearly twice as much invested in clean energy as fossil fuels in 2025.
Lately, myriad
new business opportunities
for multinational companies and start-ups alike have focused on
meeting AI’s energy demand
through clean energy.
From 2014 to 2024, the climate tech sector yielded total
returns of nearly 200%
, and U.S. investment in climate tech was
still growing in 2025
.
In the first half of 2025,
close to one-fifth
of the over 1,600 venture deals in climate tech were made by corporations for strategic reasons, such as technology access, supply chain integration, or future product offerings.
Companies look to the future
As climate risks grow alongside political headwinds, companies are facing both pushes toward and pulls away from protecting the planet from catastrophic effects. Oil and gas companies, for example,
continue to invest
in new oil and gas development. However, they also forecast
renewable energy growth accelerating
and are investing in clean tech.
The
corporate leaders I interviewed
, from tech companies like Intel to sporting goods and apparel companies like Adidas, talked about aligning sustainability efforts and initiatives across their business globally whenever possible.
This proactive approach allows them to more seamlessly collect data and respond to pressures arising domestically and globally, minimizing the need for costly patchwork efforts later. Moreover, global businesses know they will continue to
face demands
from their customers, investors and employees to be better stewards of the planet.
Lily Hsueh does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
