Why the United Nations Global Compact CCO says you shouldn’t give up on ESG communications
The country will change in the next four years — but it isn’t time to stop, Dan Thomas said.
Matt Purdue is senior strategist at Magnitude, Inc.
For years now, the communications profession has been trying to tackle the thorny problem of greenwashing: the act of misleading stakeholders about the environmental benefits of a company’s operations or products.
But today there’s the potential for another serious problem emerging: “greenhushing.” That’s the take of Dan Thomas, chief communications officer of the United Nations Global Compact, speaking at this week’s Ragan Future of Communications Conference. The UN Global Compact is the world’s largest corporate sustainability initiative, involving more than 24,000 companies in over 160 countries.
Thomas noted that in recent years, companies have been pulling back from communicating about environmental, social and governance (ESG) issues. The UN coined the term ESG in 2004. “Sustainability is now being challenged as part of ‘woke’ culture,” he said. “In some ways, it’s taking a backseat to the traditional responsibility of companies to drive value for shareholders.”
Indeed, a recent study from UCEM noted that instances of ESG appearing in U.S. company financial reports slumped 60% between 2024 and 2023. Mentions of human rights fell 45%.
With Donald Trump returning to the White House and the Republican party gaining control of the United States Congress, many observers feel ESG will continue to be de-emphasized. It could even become a third rail for companies that feel taking a strong stand on ESG could invite criticism from politicians.
But Thomas urged communications professionals to keep ESG at the forefront of the conversation, even in the face of pushback. “This country will go through a course correction over the next four years,” he admitted. “But these problems are not going away: climate change, human rights, corruption and the need to pay a living wage. Everyone wants to work for a company that enables that.”
Over and above possible political ramifications, Thomas suggested that some organizations may be “nervous or embarrassed” about communicating less-than-stellar progress on ESG initiatives. But they should not be reluctant to share their efforts. “Everyone is looking at everyone else, but no one is perfect,” he explained. “The reality is everyone is on the journey. The UN, the financial sectors and regulators all understand that. The key is to show progress in a clear and authentic way.”
He advised communicators to become better aware of the pitfalls of ESG communications by researching how and where their competitors run into trouble.
He also cautioned that perhaps one reason ESG is becoming less of a priority is a “disconnect” in how companies communicate on these topics. “The current language does not relate to individual employees or customers,” he said.
He suggested comms professionals need to move the conversation to the human level. “Help employees and customers understand the purpose (of ESG work) and the role of the company to be responsible to the world.”
Finally, all communications about ESG initiatives should be supported with solid evidence of their impact. “Be knowledgeable about your company targets, and find clever ways to communicate that,” he added. “At the end of the day, it’s asking what kind of world do you want to leave behind.”
As a Comms professional who previously worked as an environment and climate writer I urge you to ditch ESG. That is, if your Comms goal is to drive progress on climate action—which is the everything problem. Because while it seems that ESG means something noble it actually means nothing. Like sustainability it has no agreed upon definition, even among practitioners of ESG, much less with the public, and there are no legally binding certification standards. That means a company can claim anything is ESG. It IS greenwashing by definition. If you’re a Comms professional who actually cares about helping your brands or corporation or organization communicate their good deeds then use your individual agency and powers of persuasion to encourage your executives and C Suite suits to electrify your fleets or put a solar array on the roof or better yet help elect politicians who support government action at the scale needed to transition off fossil fuels. Ask them to stop with duplicitous actions like supporting climate obstructionist politicians and trade groups like the US Chamber of Commerce while touting your purchase of worthless carbon offsets or your plastics recycling campaigns or (fill in the blank small-ball initiative). Corporate sustainability for the most part is not only greenwashing it is complicit in the worsening climate crisis. Decades of ESG initiatives show this to be true, because all the while carbon emissions continue to rise with no declines in sight while we debate what words to use. Look to Aspen One—yes the ski resort company,—or Patagonia, for examples of real and meaningful climate action. Don’t be complicit in the big lie that capitalism will save us. Follow Auden Schendler of AspenOne on LinkedIn for an example of what meaningful climate comms look like. Better to greenhush and say nothing if your brands are doing nothing meaningful to reduce carbon emissions or to push the system change required. https://vimeo.com/1029437298