ESG communication in a fractured landscape: Balancing risks and opportunities

This is a guest article written by Emily Porro, SVP, Impact Practice co-lead, The Bliss Group, and co-lead of Women in CleanTech & Sustainability – New York Chapter.

The reality of global temperatures exceeding 1.5°C above pre-industrial levels for the first time is a wake-up call for all of us. But with stakeholder expectations more fragmented than ever, the path forward is likely to be complex. ESG priorities are shifting, and businesses may struggle to balance short-term and long-term needs in a political environment  that complicates efforts and dilutes the urgency for swift action. 

With companies like JPMorgan Chase and Bank of America stepping away from coalitions like the Net Zero Banking Alliance, and many large brands completely missing climate reduction goals, many wonder if ESG initiatives are losing momentum. For Chief Sustainability Officers (CSOs), the question becomes: How can we stay the course and communicate effectively with stakeholders in a way that builds trust and drives alignment? The answer is risk. 

Five tips for adjusting sustainability communications for competitiveness

1. Reframe ESG as enterprise risk management

As many companies move away from using the word ESG, and transition to “sustainability”, the truth is that ESG isn’t about politics or pandering to “woke” consumers. It's about managing escalating risks associated with climate change that affect every business—from rising energy costs to supply chain vulnerabilities to governance challenges. By positioning ESG as part of your enterprise risk management strategy, you connect it to practical business outcomes. This framing helps stakeholders understand that ESG isn’t a nice-to-have—it’s essential for navigating uncertainty and building resilience. Highlight how ESG efforts mitigate risks, enhance operational efficiency, and contribute to long-term profitability.

2. Double down on materiality

Materiality assessments are your compass in times of change. Revisiting these assessments regularly ensures your strategy stays aligned with evolving stakeholder priorities and business needs. By identifying the most critical risks and opportunities, materiality assessments allow companies to allocate resources where they will have the greatest impact. They also provide a clear framework to align ESG priorities with core business goals and stakeholder expectations, reinforcing credibility and focus.

Engaging stakeholders in the materiality process—whether through surveys, workshops, or dialogue—ensures their voices are part of the conversation. This collaborative approach not only builds trust but also strengthens the connection between ESG initiatives and real-world outcomes. Making regular updates to materiality assessments keep your strategy relevant in a dynamic environment, demonstrating adaptability and a commitment to progress.

By ensuring your ESG priorities are grounded in stakeholder input and realistic goals, you minimise the risk of greenwashing and reinforce trust with investors, employees, and the public.

3. Communicate transparently – especially about adjustments

If your organisation needs to adjust its ESG commitments, transparency is key. Be clear about the reasons behind any changes—whether they stem from economic pressures, resource constraints, new information that informs strategy, or shifting regulations—and connect these adjustments to your long-term goals. Highlight the progress you’re still making in key areas to show that ESG remains a priority. This kind of open communication builds trust and reassures stakeholders that your commitment is real, even when plans need to evolve.

When communicating adjustments, focus on interim milestones and measurable progress. For example, if timelines for decarbonisation are extended, emphasise investments in renewable energy or efficiency projects that are already underway. ESG reports, milestone announcements, and third-party assessments can support these efforts by providing verifiable updates and reinforcing credibility. Sharing lessons learned, openly addressing challenges, and giving anecdotes about works in progress demonstrates accountability and keeps stakeholders engaged.

4. Showcase resilience and leadership

For organisations staying the course with ambitious ESG goals, this is a moment to shine. Share compelling stories about the human and environmental impact of your initiatives. Highlight how sustained efforts contribute to long-term value creation and align with stakeholder priorities. By leading with resilience and purpose, you can inspire confidence and position your company as a trusted leader investing in a forward-thinking business strategy.

Storytelling can be a powerful tool here. Use narratives to connect your ESG initiatives to tangible benefits—whether it’s a community revitalised by a clean energy project or a supply chain made more resilient through innovative practices. Engage stakeholders with regular updates, visual storytelling, and platforms that encourage dialogue, reinforcing your commitment to shared values.

Third-party assessments, ESG briefing documents, and announcements celebrating milestones are invaluable for demonstrating progress. These tools help you highlight achievements and provide stakeholders with a clear picture of your ongoing contributions.

5. Balance short-term realism with long-term optimism

Acknowledge the challenges of today, but don’t lose sight of the bigger picture. Tailor your messaging to resonate with diverse stakeholders—investors focused on returns, regulators on compliance, employees on purpose, and customers on authenticity. Celebrate innovations, partnerships, and measurable progress to keep stakeholders inspired and engaged. Reinforce that sustainability is here to stay because it’s about anticipating real threats, opportunities and challenges to the enterprise —not virtue signaling.

Positioning ESG efforts as integral to overall business strategy underscores their importance and provides an opportunity to connect these ideas to broader business objectives. Highlight how sustainability initiatives drive innovation, mitigate risks, and unlock business potential, ensuring stakeholders see the value in maintaining the momentum. By connecting short-term actions to a broader vision for transformation, you can foster alignment and inspire collective action.

Leadership in the face of climate challenges

As we see the devastating impact of climate change in our communities and around the world, the need for consistent and bold corporate climate action couldn’t be greater. For CSOs and senior leaders, this moment is a critical crossroads to show stakeholders what true leadership looks like and demonstrate commitment to their values and investment in future success. By staying focused on material priorities, communicating with transparency, and demonstrating resilience, you can navigate this complex landscape while reaffirming that ESG is indispensable to your strategy for fostering trust and managing uncertainty.