61 percent of US companies surveyed expect ESG backlash to continue or increase over the next two years, according to a report issued by The Conference Board.
The report recommends that corporate boards and management view backlash as an opportunity to clarify their ESG strategy and communications.
The Conference Board also found that most companies are staying the course when it comes to their ESG commitments. Of the firms affected by backlash, just 11% are changing the substance of their ESG programs, while a majority are focusing more on the link between ESG and core business strategy. And nearly half are changing terminology to use terms such as “sustainability.”
“ESG backlash is an umbrella term that encompasses a range of positions from healthy skepticism to philosophical opposition to various forms of opportunism,” said Paul Washington, Executive Director of The Conference Board ESG Center. “While backlash is often fueled by people’s emotions, companies should respond objectively.
The most effective response is to ensure the company’s ESG positions align with company’s core business strategy, are supported by empirical data, and serve the long-term welfare of the company, its stakeholders, and society.”
These insights and others are featured in a new report, How Companies Can Address ESG Backlash, developed by The Conference Board in collaboration with the global CEO advisory firm Teneo.
The findings come from 1) a roundtable by The Conference Board that brought together more than 200 corporate leaders, and 2) a survey of 125 corporations, about half of which have annual revenue of over $10 billion.
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