Companies haven’t abandoned sustainability. They’re just talking about it less

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Companies are reducing public discussions around sustainability and ESG (Environmental, Social, Governance) initiatives, particularly in earnings calls, due to political and legal pressures
• However, mentions of sustainability in financial reports and disclosures remain nearly as frequent as before, indicating ongoing corporate commitment to these goals

🔭 The context: The decline in public ESG mentions, termed "greenhushing," reflects a strategic shift as companies navigate backlash and regulatory scrutiny
• Despite this, internal documentation and financial disclosures still emphasize sustainability, suggesting these goals have not been abandoned

🌍 Why it matters for the planet: Maintaining sustainability efforts is crucial for long-term environmental impact, even if companies are less vocal about these initiatives
• The continued focus in financial disclosures shows that ESG considerations remain integral to corporate strategies

⏭️ What's next: Companies may increasingly adopt more neutral or specific language, like "clean air" or "economic opportunity," to describe their sustainability efforts while avoiding the controversial ESG label

💬 One quote: “Everyone wants to keep their head below the lip of the fox hole politically and not be a target.”* - Julie Gorte, Impax Asset Management

📈 One stat: 97% of mentions of ESG and sustainability in the analysis were related to financial disclosures and earnings reports

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