ESG highlights from Trump’s Davos speech

By Sharon Kimathi, Energy and ESG Editor, Reuters Digital

Hello!

Today's newsletter focuses on the key environmental, social and governance points that cropped up during the World Economic Forum annual gathering at Davos this week.

They range from a poll on Davos attendees' priorities this year to U.S. President Donald Trump's comments on ESG issues.

But before we dive into the WEF survey results, here are some stories on what industry leaders are saying at Davos:

Environmental risks slipped down the rankings from last year, the survey found, as other issues came to the fore - notably worries over the long-term consequences of weak governance of artificial intelligence.

The WEF says its annual survey draws on responses from "over 1,300 global leaders and experts from academia, business, government, international organizations and civil society".

Saadia Zahidi, managing director of the WEF annual gathering in Davos, cited rising tariffs, checks on foreign investment and tighter supply controls on resources like critical minerals as examples of "geoeconomic confrontation", which ranked as the top risk.

Perceived risks around extreme weather over the next two years dropped from 2nd to 4th place and pollution from 6th to 9th. Anxiety over critical change to earth systems and biodiversity loss fell seven and five positions respectively.

However, when asked what their sharpest concerns were over a longer, 10-year period, those same respondents ranked such environmental concerns in the top three spots.

Now let's turn to the comments from Trump's speech to business and world leaders.

He sharply criticized his predecessor Joe Biden and policies that have dominated at Davos for years, from climate change to diversity.

Former U.S. Secretary of State John Kerry, who served under Biden, visibly winced as he listened.

Trump promised to reduce inflation with a mix of tariffs, deregulation and tax cuts along with his crackdown on illegal immigration and commitment to making the United States a hub of artificial intelligence, cryptocurrencies and fossil fuels.

"The United States has the largest amount of oil and gas of any country on Earth, and we're going to use it," Trump said. "Not only will this reduce the cost of virtually all goods and services, it will make the United States a manufacturing superpower."

"I want to see Europe go good, but it's not heading in the right direction."

He said a focus on green energy and mass migration were factors that had hurt Europe, without citing evidence.

"We're very much into the world of nuclear energy, and we can have it now at good prices and very, very safe."

"I want Europe to do great. I want UK to do great. Sitting on one of the greatest energy sources in the world, and they don't use it," he said.

U.S. President Donald Trump speaks during the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland. REUTERS/Denis Balibouse

Trump also repeated his regular criticism of wind power, taking aim at China when he said the country made almost all of the windmills but he had not "been able to find any wind farms in China", characterizing China's buyers as "stupid".

China defended its wind power record and reinforced its commitment to promote the global transition to low-carbon energy. China is also the world's leading producer of wind power.

Trump also said the U.S. had the cleanest air and water during his first term and that there was a "Green New Deal" in the United States that he had repealed.

This is not backed up by data. Only seven countries met the World Health Organization (WHO) air quality standards last year and the United States was not one of them. According to Swiss air quality monitoring firm IQAir, the U.S. ranks as the 22nd cleanest country (or 117th most polluted) globally.

Since taking office, Trump has withdrawn the United States from the World Health Organization and the Paris climate agreement.

Trump is moving to dismantle diversity programs within the U.S. government and is pressuring the private sector to do so as well. That has left some in Davos searching for new words to describe workplace practices that they say are essential to their businesses.

A resident shows a journalist where a Russian drone struck the roof of an apartment building last night amid Russia's attack on Ukraine, in Kyiv, Ukraine. REUTERS/Thomas Peter 

War Child Alliance's CEO Rob Williams shares what he's seeing at Davos this year as 'conflict' rises to the top of the WEF agenda:

"Right now, one in five children globally – 520 million – are growing up in conflict zones. This isn't a distant humanitarian issue; it's a warning sign of deepening global instability that political and business leaders cannot afford to ignore.

"In Gaza, over 20,000 children have been killed, and more than a million survivors are living with severe psychological trauma. 

"In Sudan, five million children have been forced to flee their homes, with four in five now out of school amid widespread grave violations of children's rights. 

"From Iran to Venezuela, we're seeing children's rights hanging in the balance as instability and conflict rages.

"We are working hard with our local partners to reach children in countries affected, but aid cuts are making this harder to achieve than ever before. 

"I can see in Davos an awareness that if philanthropists and corporates tackle something together with NGOs they can make a big difference. 

"What is missing is the leadership that was previously provided by governments who have in the past come to Davos with a broadly shared agenda on big issues like climate change. 

"The fracture in global politics leaves others feeling like they can't count on governments to be a predictable partner on global challenges. Political leadership is missing from this Davos."

Ukrainian soldier Yehor Babenko performs at the premiere of the Ukrainian parody of Virgil's "Aeneid" amid Russia's attack on Ukraine. Kyiv, Ukraine. REUTERS/Alina Smutko

Today's spotlight shines a light on Ukraine veterans using theatre to find healing and fulfilment.

Reuters followed the group, called Veterans' Theatre, as they prepared for an avant-garde performance of an 18th-century Ukrainian parody of Virgil's Aeneid.

Russia's war, now entering its fifth year, has left countless Ukrainian soldiers wounded, with tens of thousands suffering one or more amputations.

As a theater-nerd myself, I found this piece deeply moving and its images were incredibly powerful, so do give this feature a read.