State of the Union: ESG Edition
President Biden delivered his annual State of the Union Address last evening. It’s always a momentous night in Washington and every year I recall addresses from years past. Many of those memories are from working the run-up to the event, from watching with colleagues in various marble halls of government and from venerable viewing perches like Off the Record.
This year was the first time since I was posted at the State Department during the mid-1990s and working on the Kyoto Protocol – which the United States was ultimately not a signatory to – that I felt a course correction on climate change was in our grasp. We are in the most consequential decade for climate action and the Administration’s climate and sustainability strategy has put us on a path to achieve the goals of the Paris Agreement.
The Administration’s strategy was developed from a comprehensive review of the current state of infrastructure, renewables, emissions, public health and multi-sector economic impacts balanced against climate risk. A whole-of-government approach was taken to innovate and address critical issues. A series of executive orders, regulatory proposals, legislative vehicles and new programs have been successfully carried out in the past two years, with more to come.
Key legislative successes include the climate provisions of the Infrastructure Investment & Jobs Act and the Inflation Reduction Act, which funnel an estimated $479B in investment to sectors like renewables. Approximately 100,000 clean energy jobs have been created since the IRA became law last year, according to the Climate Power Clean Energy Jobs Report.
Select executive and regulatory initiatives include the White House’s Roadmap to Build a Climate-Resilient Economy and establishment of a National Climate Task Force; DOL’s ESG Investment Rule; EPA’s Methane Rule, Power Plant Rule, GHG Regs for Trucks & Buses and new Office of Environmental Justice & Civil Rights; and the SEC’s Sample Comment Letter Regarding Climate Disclosures and Proposed Climate Disclosure Rule.
The Administration’s agenda includes implementation of programs pursuant to those achievements and continuing to advance the clean energy transition; focus on public health and social issues within climate strategies; develop a climate disclosure paradigm; and reestablish the nation’s climate position globally. We must continue to support comprehensive climate solutions and press forward over the remainder of this critical decade.
