Some 80% of sustainability executives in the United States say that their companies are ‘reworking’ their ESG strategies in response to the recent policy shifts introduced by the Trump administration, a study by The Conference Board has found.
As the survey of 125 sustainability executives from large US and multinational companies found, the most common change is around reframing communications, with 52% of respondents reshaping their sustainability messaging, including moving away from the term ‘ESG’.
Backlash against ESG
Some 90% believe that the backlash against ESG is likely to ‘persist’ or ‘intensify’ over the next few years – up from 63% just two years ago – with areas such as climate-related commitments, such as net-zero goals, and ESG-related language set to be in the firing line, according to respondents.
Half of respondents expect net-zero goals or climate targets to be the primary flashpoints for backlash, while 34% anticipate backlash tied to use of ESG language or branding.
Read more: 87% of investors remain committed to sustainability goals, BNP Paribas study finds
‘Turned up the heat’
“Recent policy shifts have turned up the heat on ESG, which had already been facing mounting scrutiny,” commented Andrew Jones, author of the report and principal researcher at The Conference Board. “In most cases, the backlash hasn’t made companies back down, but rather pushed them to recalibrate how they approach, communicate, and integrate these issues into their businesses.”
When asked ‘who’ is driving the backlash, federal policymakers are now viewed as the leading source of ESG pushback, compared to two years ago, when activists and advocacy groups were cited as the driving force.
Elsewhere, two thirds (66%) state that they believe tariffs will hinder their company’s progress in achieving their sustainability goals, while 45% said that they planned to ‘delay investments in sustainable operations’. Read more here.
