Hi there 🌍
This week, global sustainability took a political and strategic turn. From Washington’s tightening grip on Diversity, Equity, and Inclusion (DEI) and climate funding; to UBS stepping away from collective climate pledges and the U.S. rejecting the International Maritime Organization’s (IMO) net-zero shipping plan, the signals are clear: organizations must prepare for shifting alliances, politicized funding landscapes, and fragmented global climate policy. Decision-makers will need sharper foresight and more flexible strategies than ever 🔍.
1. Trump Tightens Political Oversight of Federal Grants, Targeting DEI and Climate Priorities
On August 7, 2025, President Trump signed an executive order mandating political review of federal grant approvals to ensure alignment with his administration's priorities. The move explicitly affecting Diversity, Equity, and Inclusion (DEI) and climate-related funding could see sustainability and equity-focused projects denied resources unless they align with these political guidelines. For organizations, this heightens the need to anticipate political scrutiny, reframe proposals to meet shifting policy criteria, and diversify funding sources to safeguard mission-critical initiatives.
2. Union Bank of Switzerland (UBS) Exits Net-Zero Banking Alliance, Goes Solo on Climate Strategy
Union Bank of Switzerland (UBS) has formally withdrawn from the UN-backed Net-Zero Banking Alliance after using it to establish early climate commitments, opting to manage its climate strategy independently. UBS’s withdrawal reflects growing concerns among some banks over the legal, political, and reputational risks of participating in collective climate alliances, particularly in markets where environmental pledges face regulatory or political pushback.
3. U.S. Rejects IMO’s Net-Zero Shipping Framework, Warns of Retaliation
On August 12, 2025, the U.S. rejected the IMO’s proposed Net-Zero Framework for shipping emissions, warning of possible retaliation against supporting nations. The Trump administration called the plan “a global carbon tax on Americans,” arguing it would raise costs for U.S. citizens, energy providers, and shippers, while favoring expensive fuels dominated by Chinese production and not yet available at scale.
This week, we touch upon an economic concept of sustainability. The Sustainability Donut offers a strategic lens for businesses and policymakers to balance economic development with social equity and environmental respect. It defines a “safe and just space” by nesting an inner social foundation ensuring access to essentials like food, water, healthcare, and equality within an outer ecological ceiling that caps resource use to planetary boundaries such as climate stability and biodiversity preservation. The key challenge for organizations is to operate sustainably within this doughnut-shaped space without triggering social shortfalls or ecological overshoot.
To integrate this framework, assess your social and environmental impacts to identify risks and opportunities, innovate regenerative and fair business models, and embed systems thinking so growth, equity, and ecological limits remain in balance. This ensures your organization operates firmly within the Donut’s safe and just space, building resilience and long‑term value for both people and planet 🍩♻️.
Read how Amsterdam used the Sustainability Donut to guide its 2020 recovery, aligning social equity with ecological limits through circular economy and collaboration becoming a model for regenerative urban development. Read more here.
Image: Kate Raworth and Christian Guthier/The Lancet Planetary Health
Driving meaningful sustainability transformation requires more than technical solutions, it demands the ability to align diverse stakeholders behind a shared vision. The Leadership for Sustainability podcast episode "Make Change Happen: Turn Colleagues into Allies" provides a tactical playbook for sustainability leaders to shift internal dynamics from resistance to collaboration.
Listen to how this episode equips sustainability professionals to embed sustainability as an integrated, organization‑wide agenda. For leaders seeking to enhance influence, accelerate adoption, and deliver lasting impact, it provides strategic guidance for converting intent into executable, scalable change.
In our last poll, 50% of readers support accountability for misleading sustainability claims, while 42% believe penalties should only follow repeated offenses. Only 8% feel aspirational claims are acceptable, with no strong opinion from the remainder. This split reflects uncertainty about corporate self-regulation and signals a need for clearer standards, robust oversight, and greater transparency in sustainability reporting.
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That’s it for today’s roundup! We’ll see you next Thursday with another set of inspiring sustainability news and updates. Until then, take a moment to reflect on how you can adopt one new sustainable practice this week. Every small step counts!
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Together, we can make a difference. See you in the next edition of the Sustainability Roundup!