Transitioning from current norms and practices to sustainable solutions is possible through the participation of industries, sectors, and businesses that can make the most impact. However, to create more movement as we journey through the sustainability landscape, there is a need for governing bodies to help champion sustainability while promoting economic growth and reform.
The United States’s Green New Deal represents a transformative proposal that aims to address this need for accelerated efforts through acting on climate change and economic inequality simultaneously.
Introduced by Representative Alexandria Ocasio-Cortez and Senator Ed Markey in 2019, the Green New Deal is not a single policy but a comprehensive framework for several future laws that aim to shift the U.S. economy away from fossil fuels towards clean energy sources.
Given its extensive scope, the Green New Deal aims to achieve numerous sustainability goals, ranging from environmental objectives like achieving net-zero greenhouse gas emissions and ensuring access to clean water and air, to social sustainability targets such as increasing green jobs especially in the clean energy sector and ensuring justice for communities highly affected by pollution.
To meet these objectives and combat climate change and social and environmental injustice altogether, the Green New Deal proposes several strategies, including the following:
Given the influence and power the United States possesses, the Green New Deal, once passed, can become a leader in transforming today’s practices into drivers of sustainable development.
For businesses, the Green New Deal presents both challenges and opportunities. The shift towards a green economy will require companies to rethink their operations, supply chains, and even their business models.
With the Green New Deal proposing changes that may greatly affect current business models, companies and investors may expect changes in policies and regulations, especially for environmental compliance and net-zero policies. Companies will need to adapt to stricter environmental regulations, which may involve significant investments in cleaner technologies. In addition, regulation may entail the need for more transparency and better sustainability and ESG data management systems to support businesses in the transition.
Their approach towards the Green New Deal may also entail changes in brand reputation. Embracing sustainability can enhance a company’s reputation and align it with consumer and shareholder values focused on environmental responsibility. Companies and investors will need to be more conscious and mindful about how they communicate and report their sustainability performance and impact as greenwashing claims and controversies may risk losses from market shares.
Investors and companies will also have to readjust strategies, policies, and risk management frameworks. Investors will need to consider new types of risks, including regulatory risks, technological change, and physical risks from climate change. Companies, on the other hand, will have to future-proof their businesses and develop transition plans that can support their operations as they move towards sustainable practices. Companies will also have to reevaluate and restructure business models, especially for those working in critical industries that highly negatively impact society and the environment. This may entail remodeling practices and ensuring employees and affected communities are properly compensated for.
The business landscape will transform with the Green New Deal, opening up emerging markets and advancements in new technologies. With the new beginnings brought about by a sustainability-conscious economy, investors can seize opportunities in rising sectors and new businesses, moving away from fossil fuels and towards sustainable assets. Renewable energy, sustainable agriculture, green architecture, and climate tech may be of interest, providing investors with impactful investments and rewards in the new future.
Companies and entrepreneurs may also seize opportunities as early as they can. There is a door open wide for innovation in areas like renewable energy, energy storage, and carbon capture technologies. Early adopters of green technologies might gain a competitive advantage and eventually become leaders in a sustainable economy.
While the Green New Deal has inspired various policy changes and initiatives, it has also faced significant criticism and challenges. The Green New Deal remains a polarizing issue in U.S. politics, with opposition from some sectors that argue about the feasibility and economic impact of its ambitious goals. The transition towards sustainability may also be complicated and difficult, with challenges in funding, technology, and regulatory adjustments.
Progress to push the Green New Deal has been made recently in 2023, with Congresswoman Ocasio-Cortez and Senator Markey reintroducing the Green New Deal Resolution. However, this has not yet been passed. Other efforts in the U.S. to strengthen sustainability efforts have been made through sustainability reporting policies and initiatives made by local governments and communities.
Although the Green New Deal has not been adopted as a comprehensive national program, its influence on policy, corporate behavior, and public discourse around climate action resonates across the country. There is a growing recognition of the urgency of climate issues and a shift towards more sustainable practices. This evolution will likely continue to shape the U.S. response to climate change in the years to come.
The Green New Deal is a bold vision for a sustainable U.S. economy, addressing the urgent challenges of climate change and economic inequality. While it faces political hurdles, its influence is evident in the increasing integration of its principles into state and federal policies.
For companies and investors, this opens up a roadmap to pivot towards a sustainable future, requiring innovative solutions and proactive adaptation strategies. As the U.S. continues to debate and shape its approach to climate change, the principles of the GND are likely to play a critical role in shaping the country’s economic and environmental future.
At Keslio, we are deeply passionate about sustainability, equipping us with the expertise and extensive network needed to guide clients through their sustainability journey effectively and efficiently. Our expertise is particularly valuable for companies looking to embed sustainability practices into their businesses and investors looking to integrate ESG and impact into investment portfolios. To learn more about how Keslio can assist your organization on its sustainability journey, please don't hesitate to get in touch with us.
