Hearts & Minds: Staying the course on sustainability in a new political era

CEOs can be forgiven for scratching their heads as the inauguration of Donald Trump nears. This is a president who based his victory on being anti-woke, anti-ESG. In the US, his resounding triumph has seen some corporates publicly disavow their commitments in these areas. Some of that sentiment has spread internationally. But in Europe, in the EU, ‘omnibus’ legislation will be introduced next month enshrining them in law. Meanwhile, the world continues to be ravaged by climate change and natural disasters attributed to the warming planet continue apace. At the same time, incidents of abusive and discriminatory behaviour attract headlines and reputations are ruined. Brand and personal values are attacked. Somehow, they must tiptoe through this minefield.

That, though, is the point. In the same way no sensible person would rush into a field littered with ordnance and dance around, this new era, which may not be permanent and in practice, might not result in drastic change, requires a more considered approach.

To avoid antagonising, companies may choose to tone down while still pursuing the same ideals. Less flying the flag, not so glossy, not loud and boastful, not so out there. Whatever the tactic it requires careful analysis. How will it affect all stakeholders, how should it be communicated, if at all? Going the whole hog and ditching in public, for instance, may send the right political signal to one side but it also suggests a disbelief that was there all along. However it’s cut, it’s difficult to explain. There will be battlegrounds. Shareholder proposals will be one, although whether the antis receive enough support is a moot point. As ever, social media will prove to be a cauldron, attracting anti and pro campaigns. For both sides, it is the most effective medium for engagement, one that is capable of accelerating, widening and lasting. Companies must prepare for the extra pressure and have a robust comms framework in place.

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.