Beyond US federal policy: why environmental justice matters

Environmental justice (EJ) is a key element of environmental strategy for many businesses in the US. However, Executive Order 14151 signed by President Trump on January 20, 2025, provides a directive to “terminate, to the maximum extent allowed by law” EJ offices, positions, initiatives, and programs at the federal level. A March 12, 2025, USEPA press release announced that USEPA will terminate arms of the agency related to EJ.

In response, state agencies, organizations, and businesses may be hesitant to prioritize EJ and disclose related efforts. In times of rapid change, it is even more critical to be aware of current and upcoming policy and regulatory changes and consider how to design and institutionalize programs that have longevity and mitigate the risks of both considering and ignoring EJ matters.

Even if EJ is not a near-term federal priority, its underlying focus on community-based environmental analyses, reducing disproportionate impacts on nearby communities, and risk mitigation continues to provide value to businesses. This is particularly important for businesses initiating long-range planning and investments that will need to be resilient to cyclical policy changes and build productive relationships in their communities.

Environmental risk mitigation relates to more than only regulatory compliance; it is a fundamental business strategy that protects investments, enhances operational stability and sustainability, and limits liability. Effective environmental risk mitigation begins with early identification of environmental vulnerabilities that could impact project feasibility, permitting, and long-term operations. Factors such as climate and weather, pollution exposure, land-use conflicts, and the exacerbation of existing burdens must be systematically analyzed to prevent costly redesigns, litigation, or regulatory or other stakeholder intervention. Data-driven environmental analysis plays a critical role in this process, helping businesses make informed siting, design, and operational decisions that minimize disproportionate environmental burdens and align with long-term operational goals.

Beyond risk avoidance, integrating data-driven environmental analysis into business planning unlocks value. Proactive mitigation reduces uncertainty, builds resilience against market and regulatory shifts, and fosters stronger relationships with communities, investors, and other stakeholders. While the broader discussion around EJ evolves, the reality remains unchanged: businesses that fail to assess and manage relevant environmental risks can face significant financial, legal, and reputational risks.

While federal priorities seek to remove the concept of “environmental justice,” businesses can still benefit from implementing the underlying principles of EJ, including meaningful community engagement, remaining cognizant of state EJ programs, and identifying alternative funding opportunities.

Meaningful community engagement

Community engagement, a fundamental pillar of EJ, requires two-way dialogue and the integration of community feedback into decision-making processes. Regardless of changes at the federal level, local-level regulatory community engagement requirements remain in place. Many local governments have integrated community engagement into their permitting processes, making early involvement a crucial step in securing project approval.

Community engagement is also essential for earning a social license to operate. Gaining local support can mean the difference between a smooth launch and facing delays, or even project halts, due to stakeholder opposition.

Additionally, meaningful two-way engagement empowers communities to participate in project planning, often leading to better outcomes for all stakeholders. Engaging early and often helps organizations build trust and long-term relationships that can extend well beyond the project's lifespan.

Continuation of state-level EJ requirements

State-level policies and resources will prove critical in continuing to support the promotion of sustainable community development. Many states and corporations continue to prioritize the well-being of underserved communities. According to Vermont Law School’s library dedicated to tracking EJ law and policy, nearly 20 US states and the District of Columbia have enacted laws, regulations, or policies addressing EJ. These measures encapsulate requirements for comprehensive analyses assessing environmental burdens on these communities, the impact of a proposed project, and the influence public participation may have on decision-making processes. Key focus areas include air quality, water quality, and exposure to hazardous waste.

Because access to critical federal databases containing human and environmental health information has significantly dwindled since Executive Order 14151 was signed, state-level EJ databases and screening tools are likely to become relevant sources of data for analyzing potential environmental burdens.

Grant applications and funding

The Trump Administration halted many federal funding opportunities and programs involving EJ, such as the Justice40 Initiative and the Inflation Reduction Act. As such, companies that rely on external funding may now look to non-federal funding sources. These can be highly competitive, with complex application processes, limited funding periods, and restrictions on fund use.

However, the consideration of EJ in such applications provides a competitive advantage for applicants by demonstrating a focus on community engagement and mitigating environmental risk, indicating to the party contributing funding that the project is less likely to face opposition.

Regulatory uncertainty demands agility. While federal priorities may shift, the foundational principles of EJ remain relevant. Many states continue to advance environmental policies. Stakeholder expectations around sustainability and community engagement remain high. Businesses that proactively assess environmental risks and engage with communities are not just mitigating liabilities; they are positioning themselves for long-term success.

Ramboll will continue to monitor these developments and provide insights to help businesses adapt. Our commitment remains the same: to support organizations in implementing sound strategies that create lasting value for both their operations and the communities they serve.