Over the past couple of years, many large companies have had to become more cautious about what they say around their sustainability commitments, investments and the way that such long-term change is incentivised.
But, according to a new report anchored on a survey of sustainability leaders, behind the scenes there is little slowdown in ambition, just a recognition that shouting about it externally requires caution, and words must be chosen wisely.
You might think that has always been the case, but the data in the report by Echo Research points to many businesses continuing to be committed to sustainability at board level, and many of those even likely to increase their focus and ambition in the relatively short term.
The report found that most boards were engaged with sustainability issues, and understood the impacts, the reputational risks and the commercial imperatives. More than a third expected their companies to become more ambitious on sustainability initiatives over the next year, and half noted greater board-level interest over the past year.
But, two thirds said that they now have to be more careful in the language they use around sustainability and diversity, equity and inclusion programmes, given their politicisation.
That said, very few felt under pressure to scale back on DEI, net-zero or human rights initiatives.
The picture that emerges from all of this is one of companies standing firm on sustainability and the majority of boards continuing to treat it as one of the most important issues, but with the understanding that the way to communicate ambitions and achievements externally needs more careful consideration and clear strategic alignment.
“It is a tumultuous time to be a sustainability professional, given the political headwinds and investment landscape, and the shifts in policy and regulation that make future direction hazy,” said Jason Weekes, commercial director at Echo Research, which produces the report twice a year in collaboration with sustainability agency Good Business and law firm Mishcon de Reya.
“The positive in all of this is that sustainability and business leaders seem to be rising above all of that, sticking to their guns and looking to stay the course.
"The fact that sustainability is a monthly boardroom conversation in many firms indicates that despite being cautious about the spotlight, engagement with the key issues and commitment to change remains undimmed,” he said, “and with 69% of boards either looking to maintain or increase the level of comms on sustainability issues gives further cause for optimism,” he said.
Looking through the detail of the report, some of the responses about how to communicate programmes and ambitions makes for revealing reading. “We no longer use ESG or DEI; we have replaced that with Responsible Business and Culture. This doesn’t change our approach but avoids backlash which is politically driven,” said one respondent.
“Words may have to change but commitments and conviction will not,” said another.
It will be interesting to see how long that approach can sustain itself, as the scale of change commitments may be difficult to obscure or downplay completely, over time. But in the turbulent current environment, it at least seems to be enabling businesses to hold firm, even if they likely will need to remain highly sensitive to getting caught in any crossfire.
Click here for the full report.
