The Daily Scoop: ESG steps into the spotlight — for better and worse

Times are tough for comms professionals who specialize in ESG — but the work is more important than ever.

An Axios article tied to Climate Week highlights the necessity of this work as fires, storms and other climate-related disasters sweep the planet. But it also shows the struggle as communicators fight to be clear and have their message understood in the face of backlash from conservatives.

“Promoting ESG policies was once an easy layup to score good press — and theoretically move toward bettering society — but now it’s a way to court controversy, the ire of politicians and the attention from well-funded anti-ESG groups,” Axios’ Emily Peck wrote.

Indeed, Axios noted a decrease in the number of major companies discussing ESG initiatives during their earnings calls, with mentions among S&P 500 companies declining 64% since their high in 2021.

But ESG communicators haven’t given up.

“The work doesn’t really start and [our] value to an organization doesn’t really kick in until times are tough,” Randall Tucker, chief inclusion officer at Mastercard, told Axios. “It’s easy to do this work when things are fine, but this is the time now in which our roles are really important.”

Why it matters: Companies are caught between a rock and a hard place when it comes to ESG. We know that younger consumers greatly value companies that put an emphasis on these issues, but some politicians are giving strong pushback — and they have the power to make their threats real.

But climate disasters are impacting companies too, destroying their infrastructure, harming their employees and opening them to legal risks. Staying silent may not be a viable option.

Communicators must work across departments, including legal, public affairs, logistics and beyond, to set priorities and values. Using the term “ESG” might not be the best idea just now, but the concepts won’t go away. Set a strategy, determine your interests and what you stand for, and communicate that as clearly as you can to the public.

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Allison Carter is executive editor of PR Daily. Follow her on Twitter or LinkedIn.