greenhushing, carbon + more… ESG in 2024
published 4.18.24
As we’re about ⅓ of the way through 2024 and in the midst of ESG reporting season, one thing is abundantly clear — the imperative of integrating ESG into every aspect of business and beyond. Recent discussions with C-Suites to customers to everyone in between, have underscored the interconnectedness of ESG and emphasized the need for a people-first approach to drive this work forward.
Here’s the buzz (a round-up of the trends we’re hearing behind closed doors):
Carbon is all the rage
In the midst of a world grappling with pressing environmental challenges, it's impossible to overlook the significance of carbon emissions, climate change and biodiversity loss. These issues are intricately linked and have measurable implications for business continuity and the bottom line — it’s getting hard for businesses to look the other way. Half of the world’s GDP (more than $50 trillion of economic activity) depends moderately or highly on nature — and without which it would be impossible to sustain the other half (1). Earth experienced its hottest year ever in 2023 (2). Nearly half of global public companies have now set a decarbonization target, but only 11% of those targets would align with the 1.5°C temperature rise goal set by the Paris Climate Agreement (3). The World Wildlife Fund reports a decline of 69% in species (mammals, birds, fish, reptiles and amphibians) since 1970 (4). Without significant action to address these fundamental environmental challenges (especially carbon reduction), the very foundation of our work and our planet is at stake (no big deal).
Greenhushing won’t last — don’t fall for it
Gone are the days of greenwashing and empty promises. Demonstrating investment in alignment with public ESG commitments is table stakes. The impact of ESG efforts extends beyond financial success (and risk reduction); influencing the resilience of businesses, the wellbeing of employees and the trust of consumers and investors.
A survey of senior corporate leaders in the U.S. and Europe found that 71% of respondents agree or strongly agree that the role of ESG in corporate performance will grow in the future and 60% believe that leading in the area of ESG is important to drive higher corporate performance (5). Additionally, 83% of consumers surveyed think companies should be actively shaping ESG best practices (6). Companies continue to publish ESG reports, roll out DEI programs and work to meet (and even exceed) their ESG goals. Now is not the time for silence, but rather for transparency, accountability and courageous conversations — ESG (regardless if it adopts a new name) is not going away.
Human beings still like reading stories
Framing ESG discussions within broader contexts and perspectives is crucial to fostering authenticity and integrity. Humanizing ESG communications can inspire empathy, spark action and forge deeper connections with stakeholders. In a global survey, ½ consumers said that a company’s actions related to ESG often or always influence their trust in the company or the likelihood to recommend the company or brand to others (7). It's essential to align actions with words, educate stakeholders on the value and impact on their area of business and demonstrate a genuine commitment to making a positive impact. Reporting on your ESG, Social Impact, CSR (whatever you call it!) efforts matters. A national survey of senior level executives in the U.S. found that nearly 50% of respondents believe that ESG reporting: 1) highlights the company’s work making a positive impact, 2) enhances the company’s reputation, 3) makes the company appear more interesting and 4) raises awareness of issues in the community (8).
TL;DR: good communication still matters. It builds trust and credibility for our stakeholders — who are people at the end of the day — and people like a good story. :)
Our roles are evolving, and… we’re tired
The power of internal change agents and grassroots advocates within organizations cannot be overstated. As ESG practitioners:
We’ve never been afraid to show up and address the elephant in the room.
We’re adept and multilingual in corporate languages.
We know what it takes to form connections and bring people along, including executives and those outside our company walls (often without a title or many resources).
We are used to going against the grain. We’re innovators and pioneers at heart, and we have been fighting for ESG to be integrated into every part of the business since we can remember.
But now that the shift is happening, our roles are changing too— from regulation to new players joining the cause (for different reasons, but it’s worth celebrating that they’re here). And, we’re tired. Many are questioning whether this is still the right field for them. If this is you, know that it’s OK to step away and address your burnout.
People are craving connection
Now more than ever, we need to put collaboration over competition — doing this work in a silo isn’t going to get us far. This means:
Reaching out to peers and “competitors” to share information, to vent, to offer resources
Going beyond traditional stakeholders (e.g., investors) and working to amplify voices that might not typically have a seat at the table (but may be most impacted by our work)
(2) World Meteorological Organization
(5) Thomson Reuters Institute State of Corporate ESG
(6) PWC Consumer and Employee ESG Expectations
(7) PWC Global Consumer Pulse Survey
(8) Matter Unlimited & Harris Poll ESG Survey
To learn more about corporate-community engagement, check out our white paper.
by Britt Boza
Senior Consultant
