The politicization of climate change led to the phenomenon known as “green hushing.” Companies are still acknowledging and addressing climate risks, but they aren’t as enthusiastic about messaging. The hope is that by keeping their heads down, climate programs can continue to provide benefits to companies. At the same time greenhushing helps sustainability departments from becoming a flash point in the culture war. However, companies are still speaking to investors on climate. This is happening through SEC filings, limited voluntary reporting, and media releases. A recent analysis from the ICCR examines how companies speaking about climate action are framing the conversation:
“Numerous major American and global corporations continue to acknowledge that climate change is a critical risk and material business issue. When a food company states changing weather patterns threaten its agricultural supply chain or when an electric utility describes its net zero commitment in the environmental strategy section of its annual report, these are not political statements. They are assessments of business risk and opportunity, made by managements and boards with fiduciary obligations to their shareholders.”
The analysis notes that statements in regulatory filings such as 10-Ks and proxy statements tend to be less valuable than other avenues of communication. This is because statements in regulatory filings often acknowledge the risks posed by climate change, but do little else. Other public statements often offer more detail on the specific impacts of sustainability on core business functions. Ultimately, companies speaking about climate action are focusing on the financial value of planning for and mitigating climate impacts. This primarily takes the form of risk management, as even climate leaders tend to focus more on risks than benefits. However, it does reflect that climate change is still being taken seriously and that, while not politically popular, managing climate risks is still a priority for companies.
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