Could Trump rescue ESG?
Who would have thought it! US President Donald Trump is actually a great unifier. His constant threats and berating of various countries have inspired their populations to rally around their respective leaders, which may give ESG another lease on life.
Trump and his acolytes are almost ‘allergic’ to anything that can be termed as ESG making his return to the White House a big setback for the movement.
However, his tariffs and strident America first rhetoric is rapidly isolating the US from the rest of the world – especially traditional allies. This may well limit the spread of Trump ideology abroad. Witness the growing international boycotts of US products – including weapons.
Very different ideology
Two countries that have been attracting Trump’s ire are Mexico and Canada – both of which have recently held elections.
Mexico elected former energy scientist and climate change expert, Claudia Sheinbaum, by a landslide on 2 June 2024 – making her the country’s first female President. During her campaign she promised to increase the country’s renewable energy investment by $13.5 billion and focus on decarbonisation. She has other environmentally related goals such as improving Mexico’s water governance to make sure this precious resource is available to all in a fair way.
On 14 March 2025, former central banker, Mark Carney, was named Canada’s Prime Minister. For years, Carney has been a passionate proponent for using the financial sector to influence the greening of the global economy.
Therefore, two things Sheinbaum and Carney have in common are countering Trump’s attacks on their respective countries and their commitment to fighting climate change and decarbonising the economy – key ESG tenets.
These aims are closely shared by most European countries. It is notable that Carney’s first overseas visit as Prime Minister was to France and the UK as part of Canada’s major pivot away from the US in areas such as security and trade.
Sheinbaum has so far been more measured in her approach to Trump (maybe because Mexico is not being threatened with annexation unlike Canada). For instance, she has been less vocal about redirecting Mexico’s trade.
Looking vulnerable
On trade, both countries are in a deeply uncomfortable position with the US absorbing roughly 80% of Mexico’s and Canada’s exports contributing to roughly a third of their GDPs.
Whereas Canada is going full throttle on diversifying its trade, and sees Europe as a key partner, Mexico has been more hesitant. If US hostility persists – Mexico will surely seek new trading relationships as well. Given Sheinbaum’s values, a closer partnership with Europe makes a lot of sense – though China is also likely to become more important to Mexico as well in this scenario.
It is clear that these tectonic shifts in geopolitics are seeing countries forge new relationships and reaffirm mutual values – some of which are encompassed by ESG. These include protecting workers’ rights, respecting the environment and trying to create fair societies.
The coalition of decency
Looking at the current leaders of the EU, Canada, Mexico and the UK gives me hope, outside the US at least, that the transition to a greener economy and respect for human dignity, will continue. And other countries might eventually want to align themselves with this coalition of decency, such as Japan, Australia and New Zealand.
Hopefully the US will rejoin its allies one day – though that cannot be taken for granted. And even then – the damage will be deep, particularly with Canada, Mexico and Europe and will take years to repair.
In the meantime, the values characterised by ESG could become the beacon of what defines these societies from the harsh, aggressive and sometimes callous approach promoted by Trump and his minions.
It is now up to ESG supporters to make a strong case for a coalition of decency among like-minded nations.
