Sustainable Economies Will Own the Future

PARIS—Environmental and climate concerns appear to be in retreat worldwide. The word sustainability has become politically charged, the Trump administration openly mocks corporate ESG (environmental, social, governance) criteria, and many companies are shelving their net-zero-emissions pledges.

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But look beneath the surface, and you will see something else. Though the political and cultural backlash against “sustainability” is real, so is the global economic transition toward cleaner energy technologies and electrification.

After all, the work of establishing corporate sustainability standards has continued. A growing number of jurisdictions are adopting the International Sustainability Standards Board’s disclosure framework, and in Europe, the European Sustainability Reporting Standards remain in force. Despite their differences, such initiatives are converging into a single global architecture.

This convergence is driven not only by complementary regulations, but also by the world’s largest pools of capital. Pension funds, sovereign wealth funds, insurance balance sheets, and development-finance institutions are increasingly bound by........

© Project Syndicate