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The “one stop” resource for information about responsible executive compensation practices & disclosure.

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PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

Last week when news broke about John Deere backing away from their DEI commitments, I was skeptical – suggesting it could be a hoax because of a few red flags. However, it now looks as though the company statement issued on X is real and official. If it was a fraud or a hoax, Deere would have rapidly issued an official statement to that effect – but here we are over a week later and the company has not officially confirmed or denied the statement. That absence implies the X post correctly reflects the company’s position.

There has been – and will continue to be – plenty written about the impact of abandoning DEI commitments. But let’s look at a different lesson. Communication of the announcement has been, well… less than optimal. Most striking is Deere’s ongoing silence on the matter. X isn’t typically the sole venue in which major companies make big announcements. It feels odd, especially given all the social media fraud that exists. This makes me wonder if Deere is afraid to really make the announcement publicly, or if it bypassed the company’s standard communication procedure.

ESG leaders, staff and advisors: As you lean into implementing programs for ESG/sustainability goals, you must consider communications plans for positive and negative actions or results. Avoid last minute panicked scrambling to explain things like why climate goals won’t be met, how you address suppliers facing human rights abuse allegations or a rapid change in corporate ESG direction. Develop specific positive and negative messaging around each material ESG matter identified as being relevant well in advance of your need to communicate. After all, if something is important enough to be material, it is important enough for thoughtful, planned and formal communications. Silence – and the ambiguity it brings – is not a good path.

For the sake of transparency, I don’t directly own any stock in John Deere, nor do I know anyone who works there.

Our members can learn more about ESG business value and communications here.

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Photo credit: wolterke – stock.adobe.com

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile