Multinational corporations are increasingly investing in clean technology, despite political challenges and shifting regulatory landscapes. The actions of the Trump administration, including withdrawal from the Paris Agreement and relaxation of emissions regulations, provided some companies with reasons to reconsider their climate commitments. Notably, Wells Fargo recently abandoned its goal for financed companies to achieve net-zero emissions by 2050, citing a lack of necessary conditions such as policy certainty and consumer behavior.
While certain corporations are scaling back, others, such as Walmart, the world’s largest retailer, continue to pursue their climate policies. These companies recognize the need for long-term planning in the face of growing pressure from various stakeholders, including state and local governments, the European Union, and consumers. Many firms are choosing to advance their climate initiatives quietly to avoid scrutiny while still striving to reduce their environmental footprint.
State Influence and International Regulations
In the United States, state-level regulations play a critical role in shaping corporate environmental strategies. California, with its large economy and population, has enacted stringent climate laws, including an extension of its cap-and-trade program. This program aims to significantly reduce corporate emissions, setting a target of net-zero greenhouse gas emissions by 2045. As federal policies shift away from climate action, states like California and regions within the EU have stepped in to fill the regulatory void, effectively guiding multinational corporations’ environmental practices.
Other states have joined California in committing to the goals of the international Paris climate agreement as part of the U.S. Climate Alliance, a coalition of 24 governors representing over half of the U.S. population. These states are considering laws that would hold companies financially accountable for their contributions to climate change, with recent examples in Vermont and New York.
Globally, multinational corporations must adhere to various climate regulations. The European Union has set ambitious targets, aiming to reduce emissions by at least 50% by 2030. This includes binding climate reporting rules for large corporations and carbon taxes on goods entering the EU. The recent update to the EU’s “Fit for 55” framework emphasizes accountability while reducing the administrative burden for smaller firms.
Corporate Strategies and Clean Tech Opportunities
As businesses navigate these complex regulatory environments, many are discovering the financial benefits of investing in clean technology. Since 2016, global investments in clean energy have outpaced those in fossil fuels, with nearly twice as much capital directed towards clean energy in 2025. Companies are seizing opportunities to innovate, particularly in response to the growing energy demands of artificial intelligence (AI).
For example, Walmart launched Project Gigaton in 2017, aiming to eliminate 1 gigaton of greenhouse gas emissions from its supply chain by 2030. Collaborating with suppliers like Nestlé, Unilever, and Coca-Cola, Walmart reached its initial target six years ahead of schedule through various initiatives, such as enhancing energy efficiency and minimizing food waste. Although Walmart’s overall emissions have continued to rise with business expansion, its emissions intensity has decreased significantly.
The rapid expansion of AI is prompting tech giants to reassess their climate priorities. Reports from companies like Microsoft and Google reveal substantial increases in emissions due to their growing data centers, indicating that reliance on renewable credits is no longer sufficient. In response, firms are exploring sustainable energy sources, including nuclear power, to meet their operational needs while maintaining carbon-free commitments.
The evolving landscape requires corporations to align their sustainability efforts with broader business strategies. With increasing consumer demand for accountability and responsible practices, businesses must integrate climate considerations into their operational frameworks. A survey conducted by Getty Images in 2025 found that over 80% of consumers expect clear environmental, social, and governance (ESG) guidelines from companies.
As the world approaches 2026, the divergence between political deregulation and the rigorous demands of the AI revolution creates a new era of corporate pragmatism. While some firms may use political shifts to delay ambitious climate goals, the most successful corporations will be those that proactively invest in sustainable practices and respond to evolving legal frameworks. The future of business will increasingly depend on a commitment to reducing emissions and fostering a cleaner, more sustainable environment.