Companies affirm messaging needs to be ‘climate risk is a business risk’ under new Trump term
Consumers and investors agree that language is important when companies communicate how they approach financial environmental risk, especially with a new administration. Read More
The Trellis Network recently gathered executives from across a wide range of industries to discuss how to navigate the communication of corporate climate action to consumers and investors during a second Trump administration. The World Business Council for Sustainable Development (WBCSD) and language strategy firm Maslansky+partners presented comprehensive research that highlights what registered voters truly expect and perceive about corporate climate action.
The feedback also included that from potential investors in clean energy technology, with Maslansky+partners finding that the majority of investors remain bullish on clean energy technologies. Those same investors were found to overwhelmingly believe that publicly held companies actively anticipating and integrating climate and environmental risk are more likely to financially succeed in the long run.
The trick will be navigating their messaging while avoid what have become hot-button terms such as ESG and DEI. Below is an overview of communication strategies that boost positive financial performance while mitigating the trappings of politicized language.
Consumers want action
Voters in general (who were polled before the election was called) indicated that they expected companies to make more of an effort towards mitigating climate change, regardless of who won the election, according to WBCSD. Specifically, a majority of those polled said they want to see companies investing in programs that reduce carbon pollution, with the number of those in favor increasing in the event of a Trump win.
When asked whether companies should both fight against Trump’s potential cuts to the Inflation Reduction Act (IRA) and eventually step up to fund the cut sections themselves:
- 88 percent of Republicans surveyed said yes.
- 65 percent of independents surveyed said yes.
- 97 percent of Democrats surveyed said yes.
Messaging is key
The last few years have seen a war on ESG investing from many Republicans, positioning the term as taboo and creating negative associations with it, regardless of actual meaning or intent. Maslansky+partners research found that just under 50 percent of chief communications officers of major U.S. corporations are using highly politicized terminology such as “DEI” and “ESG” less than they were two years ago in official company reports.
Instead, companies should begin to find words that resonate with a more conservative audience but that still very much intend to consider environmental and social impacts.
- “Responsible business,” as opposed to more specific climate or social-related terminology, comes across as accessible to all across the political spectrum. Framing climate risk as a responsible business decision.
According to the presentation, chief communications officers across the board found that responsible business meant prioritizing profit while also benefiting the environment and employees, shaking the baggage of the previous terms. It was also found to have strong connections to financial success across the political spectrum.
