From Fortune:

New survey from Teneo reveals 92% of CEOs plan to continue their ESG initiatives, despite accusations of politicizing business and investment. The polarized political landscape has only exacerbated concerns over ESG decisions. The looming presidential election in the U.S. has brought ESG into the spotlight, particularly during GOP primaries.

ESG initiatives have turned into a major talking point in the ongoing Republican primary, with candidates debating whether companies should factor them into their decision-making. Notable critic Vivek Ramaswamy has gained traction among conservatives. Florida Governor Ron DeSantis has signed a bill prohibiting state officials from investing public money in ESG initiatives.

To avoid the backlash, some CEOs have rebranded ESG initiatives due to public polarization. Walmart’s chief sustainability officer has expressed concern over ESG becoming a ‘boogeyman,’ given varying interpretations. However, merely rebranding ESG under a new name appears to be a cosmetic solution.

Amidst the controversies, MIT professor Florian Berg opines that the lack of clarity around ESG goals causes confusion. As a result, investors, employees, and shareholders don’t understand whether ESG refers to a company’s social responsibility or a profit strategy. Companies and investors are often not honest about their intentions, creating a trust deficit.

Teneo’s Martha Carter advises companies to closely align with the goals of key stakeholders, including investors and employees. She suggests that public statements and actions should reflect the business strategy and previously made commitments. Consequently, companies must be prepared to mitigate possible social media-driven backlashes.



Read more: Companies face ESG critics from both sides, survey