In a global economy where US policy has become distinctly unfriendly to advocates of renewable energy and climate change, AmChamHK’s Sustainability Committee, which tackles Environmental, Social and Governance issues as well as energy convened a leadership conference during Hong Kong’s Green Week from September 8-12. 

Hendrik Rosenthal, director of Group Sustainability at CLP, and Eileen Gallagher, director of climate at Business for Social Responsibility, moderated sessions on sustainable finance and the current landscape of corporate leadership in sustainability. Rahul Ghosh, global head of sustainable finance for Moody’s, gave the keynote speech on how US firms are adapting their financial strategies to meet shifting regulations and investor expectations, amid growing climate-related risks. 

Among the findings: 

• What may look like a big step back in US policy on renewable energy is more of a calibration than reversal

• Demand for solar remains stable while demand for offshore wind has been declining in the United States

• Decarbonization of data centers offers opportunities for the renewable energy, as their growing power needs and net-zero commitments are driving demand for green energy and infrastructure

• Foundational infrastructure investments in new energy and renewables remain commercially attractive despite US policy

• ESG has become less widely used as companies face reduced pressure to such adopt standards; instead, companies are focusing on resilience

The first panel focused on the Trump administration’s One Big Beautiful Bill Act, which rolled back multiple clean energy policies including the Inflation Reduction Act and tax credits for solar and wind.  

Recent policy changes should be viewed as an ‘America First’ recalibration rather than as ‘anti-renewable’, panelists argued. Investment remains strong in areas such as grid infrastructure, transmission, and energy storage – key enablers of the ongoing energy transition. US multinationals in Asia Pacific are less affected by US policy retrenchment than by the regional policy environment, which remains largely favorable. China offers a stable policy environment on renewables, and is likely to continue to remain the world leader in renewable energy for the foreseeable future.

CLP’s Rosenthal said that the discussion of sustainable finance produced a “deeper understanding” of US policy changes and would help members “strategically recalibrate governance and priorities to enhance business resilience and long-term value.”

Based on somewhat controversial estimates from Lazard, the asset management firm, on ‘levelized costs of energy’, the economic appeal of solar and utility-scale energy storage investments has remained stable, although demand for offshore wind has been declining. New opportunities are being driven by the data-center boom. The explosion of data center investment has led to electricity price hikes and capacity shortfalls in some parts of the US, and renewable energy, which is lower cost than newly installed coal-fired plants, offers an alternative. 

More foundational infrastructure projects, such as transmission, distribution and grid connectivity, are needed to drive the green energy transition and these projects remain commercially attractive to investors. However, concerns were raised about the short to medium-term willingness of other countries to do business with the United States. Most of the world’s battery manufacturing expertise is in Asia, and through recent geopolitical tensions the United States is at risk of permanently losing its competitive edge in the automotive industry if battery supplies become weaponized.

The second panel explored how US corporations are adapting to evolving sentiment around ESG. Panelists noted that ESG language is changing, with the term becoming less relevant, and instead being replaced by more focused discussions on “resilience”, specifically, operational, economic, supply chain, and transitional resilience. However, the core values of ESG and long-term sustainability goals will remain largely unchanged. Panelists suggested that changes in ESG language may be positive, as the sharper focus on resilience allows companies to be more specific when communicating risks and provide stronger reasoning for their sustainability decisions.

The September 10 conference concluded on a cautiously optimistic note. Panelists agreed that while the US policy environment remains politically fluid, business sentiment toward sustainability is steady. Investment flows in clean energy, grid modernization, and decarbonization of data infrastructure continue, supported by investor confidence and international collaboration.

• Participants in the first panel on the current state of US leadership in sustainable finance included Moody’s Ratings’ Ghosh, Henri de Branche, Managing Director, APAC Head of Sustainable Solutions, JP Morgan, and Nneka Chike-Obi, Head of APAC Research, Ratings, and Opinions, Sustainable Fitch, and moderator Rosenthal of CLP

• Participants in the second panel, on the current landscape of US corporate leadership in sustainability included Tim Sypko, Senior Vice President, Operations, Hong Kong Disneyland Resort, Tinhanei Lee, Senior Director, Owner Relations & Sustainability, Greater China, Marriott International, Peter Choy, Vice President, Supply Chain & Sustainability, Starbucks Coffee Asia Pacific, Joanne Hon, Managing Director, Hong Kong, Equinix Asia-Pacific, together with moderator Eileen Gallagher

Joining the event and discussion were Dr. Eden Woon, president of AmChamHK, and Jason Chang, partner at ERM-Hong Kong Ltd, and AmChamHK Sustainability Committee chair.