Hearts & Minds: Fifty Shades of Green

The chorus of investment industry chiefs regretting the push for ESG continues to grow. They had made a ‘huge mistake’ in claiming they could ‘save the world’, one said yesterday, in promoting their role in tackling environment, social and government issues for marketing purposes. In doing so they had opened themselves up to legal risk. He applauded the ‘expunging’ of the acronyms ESG and DEI. Not everyone agrees with the trend - another said recently he is against ‘greenhushing’, saying he was sorry he had ‘not been anywhere as vocal in this environment as I had been at earlier times’ when it was more ‘politically acceptable’.

Leaders and their comms teams are thrown. Ever since the election of Donald Trump, some have moved rapidly in one direction while others are hesitant and still others determinedly stick to the policies they were pursuing before.

Some claims were over-egged and declarations of intent were made that may now appear outlandish. It is also the case that to run up against the current White House is dangerous. But take asset managers. They speak for a sector that manages institutional and individual wealth, their decisions have enormous reach and can affect lives pretty much everywhere. They are also major employers in their own right and possess large stakeholder communities. They bear huge responsibility.

Ultimately, which route any company takes is up to them. It has to be a decision for the company, for the management and board. It must be accompanied by convincing, easily understood, strong messaging – this what we stand for and why, this is what we are doing and going to do. The safer, middle ground may entail explaining there were some aspects of ESG and DEI you did not agree with, that turned out to be impracticable. Equally, there are those you firmly support and adhere to. Getting that right, avoiding accusations of double standards, requires careful negotiation and handling.

As ever, authenticity is key. You must impart conviction and trust. Ask yourself: is this what we believe, if we say this, will we be believed, how will people, our people, all people, judge us?

One temptation is to follow Trump, to use the sort of direct language he uses. Remember, he can say that because he can, because he’s a politician, because he’s always been anti-ESG and DEI, because he was elected on a ticket of opposition. That’s his brand, it is not yours.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.