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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: A growing number of U.S. companies, including American Airlines, Kroger, and American Eagle Outfitters, are quietly downplaying climate-related language in their 2025 proxy and investor filings
• References to net-zero targets, emissions reductions, and sustainability commitments have declined significantly across filings, with WSJ data showing a 32% drop in the use of "net-zero" and a 24% decrease in mentions of Scope 1–3 emissions compared to the same period in 2024.
🔭 The context: This shift comes amid a regulatory rollback under the Trump administration, including the suspension of SEC efforts to mandate climate-risk disclosures
• At the same time, there has been a sharp decline in activist shareholder proposals related to environmental issues—falling from 417 last year to 229 in 2025
• Many companies claim their core climate strategies remain intact, but the messaging has become more subdued and less specific
🌍 Why it matters for the planet: Reduced transparency in corporate climate reporting could hinder investor ability to distinguish between climate leaders and laggards, delaying capital reallocation toward sustainable businesses
• This pullback in disclosure risks eroding accountability, particularly at a time when the need for climate action is becoming more urgent
• It also raises concerns over corporate greenhushing — a trend where companies scale back climate messaging to avoid political or legal scrutiny
⏭️ What's next: Investors, regulators, and civil society may need to seek alternative avenues for ESG insights, including third-party ratings, direct engagement, or non-financial reports outside of SEC filings
• Companies face a balancing act: avoiding overstatement to reduce litigation risk while maintaining sufficient disclosure to retain stakeholder trust
• The outcome of the 2025 U.S. election could also shape whether federal disclosure mandates are revived or further dismantled
💬 One quote: “We can’t assess businesses if they’re not telling us this information that is vital,” — Witold Henisz, Vice Dean at the Wharton School’s ESG Initiative
📈 One stat: Mentions of “net-zero” in proxy filings dropped 32% in the first five months of 2025 compared to the same period in 2024, according to WSJ analysis of over 10,000 documents
See on illuminem's Data Hub™ the sustainability performance of American Airlines, Delta Air Lines, Kroger, American Eagle Outfitters, Walmart, and Gap Inc
Click for more news covering the latest on net zero
