In recent years, the issue of Environmental, Social, and Governance (ESG) has taken up a lot of space in corporate discourse. Yet a recent trend seems to mark a change. In the earnings calls of S&P 500 companies, mentions of ESG reports have seen a significant reduction, falling by 30% since the peak in 2021, according to a Bloomberg Law analysis.
As exemplars of this trend, Walmart, Occidental Petroleum, and pest control conglomerate Rollins deserve mention. All three of these organizations have recently taken a common approach to ESG issues, with their executives talking less about their ESG reports in public pronouncements. This doesn’t necessarily indicate a diminution of the work being done in these areas, but it does suggest a shift in corporate communications strategies relative to ESG.
These companies were included in a list of 13 S&P 500 members whose earnings calls featured fewer direct references to ESG, sustainability, and corporate responsibility reports and other similar publications in 2022 and 2023, following a peak in 2021.
Interestingly, this trend has been accompanied by a conservative backlash against the term “ESG”. However, it should be noted that a decrease in mentions of ESG does not necessarily imply a decrease in actions related to ESG issues.
Large corporations may be changing the way they present their commitment to environmental, social, and governance issues, and the language used to communicate this may be evolving. What remains constant, however, is the importance of these issues to large companies and their stakeholders.