Sustainability Without the Politics: Five Lessons from Southeast Asia in the Age of Trump

The early days of Trump’s second presidency have been a barrage of rollbacks on sustainability, climate, and diversity policies. On his first day back in office, he signed an executive order dismantling federal DEI initiatives, removing protections against discrimination, and blocking funding for climate research. His administration has also moved swiftly to pull the U.S. from the Paris Agreement again, dismantle environmental oversight bodies, and expand fossil fuel projects. If his first term is any indication, corporate sustainability efforts will face political hostility, and ESG will be cast as a threat to business rather than a driver of resilience and value creation.

Against this backdrop, I recently returned from an experiential course on sustainability in Southeast Asia with London Business School MBA and EMBA students. The region’s sustainability challenges are immense, but what I saw there left me with more hope than I expected. While political gridlock dominates Western sustainability debates, Singapore and its neighbours are making pragmatic, forward-looking decisions that integrate sustainability into economic and business strategy. These lessons offer a compelling counterpoint to the pessimism that often dominates discussions on climate action.

Lesson 1: Sustainability as a Strategic Imperative

In Southeast Asia, sustainability is embedded in long-term economic planning, not treated as a political or ideological issue. Singapore, for example, has incorporated sustainability into its national economic agenda, making it a core part of industrial policy, infrastructure investment, and financial sector development. Businesses are not approaching sustainability as an obligation or compliance exercise; they see it as essential to resilience and competitiveness. This stands in stark contrast to the U.S., where sustainability is increasingly framed as an ideological battle rather than an economic strategy. The integration of sustainability into corporate strategy in Southeast Asia suggests that businesses can thrive when they move beyond the rhetoric and focus on long-term value creation. This perspective also changes how companies approach risk. Sustainability is seen not as an external cost but as an investment in stability. Firms that integrate sustainability into their core business models are better positioned to withstand regulatory changes, supply chain disruptions, and shifting consumer preferences. As global markets become more volatile, this long-term perspective makes these businesses more resilient and adaptive.

Lesson 2: Pragmatic Transition Finance

One of the biggest challenges in sustainability is funding the transition away from carbon-intensive industries without triggering economic collapse. While Western financial institutions often take an exclusionary approach—divesting from high-carbon industries to minimize risk—Southeast Asia is pursuing a more pragmatic transition finance model. Rather than abandoning high-emission sectors, financial institutions and policymakers in the region are working to fund their transformation. This is a critical distinction: by providing financial mechanisms that support the transition, rather than merely punishing unsustainable practices, the region is enabling real progress. A transition-focused financial model ensures that sustainability is not just about cutting off capital, but about directing it where it is most needed. Companies in carbon-intensive industries are encouraged to innovate and develop new models that align with global climate goals. Instead of treating them as lost causes, governments, and investors in Southeast Asia are helping them evolve, creating a realistic pathway to a low-carbon economy.

Lesson 3: Resilience Amid Geopolitical Uncertainty

Trump’s return to power has reintroduced unpredictability into global climate policy. The U.S., once a driving force behind international climate agreements, is now stepping away from the global stage again. Europe, meanwhile, faces its own regulatory challenges as businesses push back against ESG requirements. Yet, in Southeast Asia, sustainability remains firmly embedded in long-term economic strategy. Singapore has positioned itself as a global leader in sustainable finance, green technology, and climate policy, largely because its policymakers recognize that economic competitiveness depends on forward-thinking investment. This long-term approach protects businesses from the instability of political cycles. Rather than being buffeted by changes in government, sustainability investments in Southeast Asia are structured around national development goals that are unlikely to be abandoned with each administration. For companies looking for policy stability and clear market signals, this creates an environment that fosters long-term planning and investment in sustainability.

Lesson 4: Emphasis on Climate Adaptation

The dominant climate conversation in Western economies revolves around emissions reductions and decarbonization. While these efforts are crucial, they are only part of the equation. In Southeast Asia, adaptation and resilience are just as central. The region is already facing severe climate-related disruptions, from rising sea levels to extreme weather events. Rather than treating climate action as a theoretical debate, businesses, and policymakers are investing in infrastructure, risk management tools, and financial instruments designed to withstand climate shocks. This focus on adaptation acknowledges the realities of a changing climate. Investments in seawalls, flood management systems, and resilient urban infrastructure ensure that businesses and communities can survive the disruptions already underway. By embedding adaptation into economic planning, Southeast Asia is positioning itself as an emerging leader in climate resilience.

Lesson 5: Innovation Driven by Necessity

Sustainability in Southeast Asia is not framed as an obstacle—it is a driver of innovation. In a region where resource constraints are a harsh reality, businesses are finding creative ways to integrate sustainability into operations. Carbon pricing mechanisms, blended finance structures, and technology-driven solutions are emerging not because of regulatory pressure alone, but because they make economic sense. The notion that sustainability stifles business is simply not borne out by the examples we saw. Instead, constraints are forcing companies to develop new solutions that drive both environmental and financial benefits. Necessity has always been a catalyst for change, and in Southeast Asia, sustainability is an engine for technological advancement. From circular economy models in manufacturing to AI-driven energy efficiency solutions, companies are finding ways to make sustainability a source of value creation. This dynamic approach challenges the assumption that environmental responsibility must come at the cost of profitability. Instead, it reinforces the idea that sustainability and innovation are mutually reinforcing.

A More Hopeful Path Forward

Southeast Asia’s approach to sustainability offers a hopeful contrast to the regression taking place elsewhere. The region is not free from challenges—far from it. But what distinguishes its approach is the absence of ideological paralysis. Sustainability is not framed as a cultural war, nor is it dismissed as an economic burden. Instead, it is integrated into economic planning, financial policy, and business strategy in ways that are likely to persist regardless of political shifts. The hope here is not that Southeast Asia has all the answers, but that its approach demonstrates a viable path forward. If sustainability is to succeed globally, it cannot rely on fragile political commitments alone. It must be deeply embedded in economic systems, making it resilient to political turbulence. The lessons from this region suggest that sustainability’s future does not rest solely on the shifting winds of U.S. politics. Instead, it will be driven by the businesses, investors, and governments that recognize sustainability as an indispensable pillar of economic and strategic success. That, perhaps, is the greatest reason for hope.