Ryan Dowling
May 19, 2025
Why sustainability is more relevant than ever in a time of tariffs
Economic volatility and the introduction of tariffs in the US have caused some companies to consider deprioritizing sustainability, but is this the right call? Our expert explores the reasons why sustainability is still critical for companies to focus on.
The U.S. has taken a sharp turn in trade policy, recently, by imposing more tariffs on nearly all imports. Businesses across industries are now recalculating margins, rethinking procurement strategies, and bracing for economic volatility.
It’s a moment of pause – and for some, a temptation to delay or deprioritize sustainability initiatives.
But here’s the truth: sustainability isn’t a “nice to have” that can be shelved during short-term economic stress. Tariffs introduce friction into global value chains – but so do floods, droughts, and tightening carbon policies. The companies that have already embedded sustainability into their operations are now better positioned to absorb this shock. Companies that have invested in energy efficiency, localized supply chains, and low-emission procurement are better positioned to manage costs exacerbated by tariffs.
Sustainability is a core risk response strategy – and one of the most effective ways to build economic resilience in uncertain times. Below are some reasons why sustainability still matters in a time of increased economic volatility and how it can deliver immediate value:
1. Buffers against supply chain and cost volatility
Sustainability strategies focused on efficiency and localization help insulate businesses from rising input costs and sourcing constraints. With tariffs increasing the price of many imported goods, companies that have restructured around cleaner, closer supply chains are experiencing less financial strain.
Examples:
| If you’re... | Then... |
| Facing rising import costs or disruptions | Localize supply chain to reduce tariff risk as well as reduce transport related carbon emissions |
| Adjusting sourcing strategy under pressure | Evaluate suppliers based on proximity, emissions, and cost risk (including carbon cost risk) |
| Dependent on imported raw materials | Explore circular or recycled alternatives to reduce raw materials exposure |
2. Facilitates efficient growth and strategic flexibility
Sustainability emphasizes resource discipline and flexibility – valuable assets in unpredictable markets. Companies that integrate emissions, energy, and waste metrics into operational planning have greater adaptability during disruptions.
Examples:
| If you’re... | Then... |
| Managing costs amid uncertainty | Use emissions and efficiency data to guide investment decisions and reduce energy cost exposures |
| Planning operational or sourcing changes | Evaluate major capital decisions over several potential climate scenarios to de-risk long-lived assets. |
| Re-evaluating corporate strategy | Build in possible climate change impacts into strategy evaluation, including in product demand, customer impact, and physical risk exposure. |
3. Reinforces investor confidence and reporting readiness
Long-term sustainability planning is becoming a much more material reference point for investors, who want to ensure long-term returns. While tariffs dominate headlines, investor and regulatory expectations for sustainability transparency continue to rise. Companies that build in sustainability as a part of their normal performance measurement and investor reporting documentation will retain stronger access to capital and strategic investor partnerships. Examples:
| If you’re... | Then... |
| Facing more investor questions about ESG progress | Build more robust and automated sustainability data collection and reporting. Strengthen audit-ready data and alignment to global frameworks |
| Navigating overlapping regulatory requirements | Build systems that serve multiple jurisdictions without duplication |
| Concerned about short-term trade-offs | Communicate interim targets and transition risks with clarity and intent |
What Ramboll recommends: Transform disruption into strategic opportunity
At Ramboll, we assist clients in evolving through challenges. In response to broad-based tariffs, we recommend:
1. Turn cost pressure into supply chain advantage
- Use sustainability as a lens to reconfigure sourcing and logistics strategies – prioritizing efficiency, localization, and circularity to manage volatility while building long-term resilience.
2. Rebuild for optionality and adaptive growth
- Redesign your transition strategy to remain flexible under economic strain. Use sustainability metrics to drive efficient resource allocation, stress-test future plans, and unlock growth amid uncertainty.
3. Build ESG credibility through resilient reporting systems
- Ensure sustainability data and disclosures meet the rising bar set by investors and regulators. Invest in systems and governance that support multi-framework compliance, transparency, and trust – even during disruption.
These proactive steps position companies to lead in the evolving economy, rather than merely endure current challenges.
The bottom line: Sustainability is stability
In uncertain times, businesses crave certainty. Sustainability can help create more certainty by reducing volatility, controlling costs, and enhancing stakeholder trust. While tariffs may be temporary, the vulnerabilities they reveal are not. This is an opportunity to rebuild more intelligently and align with a future where more volatility is the norm.
The companies that hold the line on sustainability now won’t just survive this tariff shock. They’ll emerge stronger, leaner, and more aligned with where capital, policy, and markets are going next.
Want to know more?
Ryan Dowling
Manager, Strategic Sustainability Consulting, Transition Risk
Corey Barnes
Local Service Lead, Sustainability Consulting & ESG