In the earlier days of the modern ESG movement, commitments were commonplace. Companies committed to net-zero, responsible sourcing, diversity, etc. Often setting “targets” 10-20 years out. These commitments grabbed headlines and generated good press. Afterwards, many of the people who made these promises left for new roles, leaving current sustainability leaders picking up the pieces. As it turns out, making progress in sustainability is hard work. According to a new survey from Globe Scan, 71% of sustainability leaders expect commitment cuts. Here are some key takeaways from the survey:
- “Widespread risk of rollback: Among sustainability professionals at large companies, over seven in ten (71%) say at least one of their corporate commitments is at risk of being scaled back, pointing to growing pressure on sustainability agendas.
- DEI most exposed: Diversity, equity, and inclusion commitments are most frequently identified as at risk, followed by public advocacy, with supply chain and climate-related efforts also under pressure.
- More focused agendas: Only about one in four (24%) expect all commitments to be maintained, signaling a shift toward a smaller set of priorities.”
It is unsurprising that DEI cuts are driving the expected cutbacks. In the U.S., DEI practices face heavy scrutiny from the current administration. In many cases, this opens up legal risks to continuing the pursuit of DEI commitments. Next in line for driving the trend is public advocacy on sustainability policy. This too is no surprise. For the past year and a half, “greenhushing” has become a popular trend. Due to the political risks of speaking up on ESG, many companies have taken a quiet approach. Ultimately, it seems that unrealistic expectations mixed with political headwinds are driving sustainability leaders to expect commitment cuts. What commitments remain will likely map to strategic goals that enhance business value.
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