Semantics Matter! Navigating Sustainability and ESG with Carefully Crafted Communications Designed to Unify vs Divide

Throughout my professional career, I’ve consistently been engaged in persuasive writing – so I know that words matter. Words have power. They shape perceptions, influence attitudes, and can either unify or divide.

However, the divisiveness of words in corporate communications has become more pronounced with the advent of environmental sustainability and ESG (Environmental, Social, and Governance) strategies. The power of words is now amplified, with strong, often politically charged reactions from both proponents and skeptics of sustainability and ESG initiatives.

The Spectrum of ESG Perspectives

Today, corporate leaders span a spectrum in their approach to ESG:

• Wholehearted Supporters: These leaders see the benefits of a well-implemented, authentic ESG strategy that engages and empowers stakeholders.

• Box-Tickers: These leaders adopt ESG to appear compliant or trendy without genuine commitment.

• Skeptics: These leaders focus solely on shareholder value, dismissing ESG as unnecessary hype.

For leaders, the challenge lies in crafting a growth strategy that communicates effectively to all stakeholders without alienating any group. According to a recent Fast Company article, terms like "woke" and "sustainability" can evoke strong reactions. Over 66% of people surveyed don’t fully understand what ESG entails, yet they oppose it. This polarization can be a significant barrier to progress, as it alienates stakeholders who might otherwise support the underlying goals of these initiatives.

The DEI Parallel

Diversity, Equity, and Inclusion (DEI) initiatives have faced similar challenges. In the wake of the Black Lives Matter and #MeToo movements, many companies made ambitious DEI pledges. According to a Harris Poll-HUE survey, 80% of HR directors reported implementing diversity initiatives, yet 81% of employees saw no significant progress.

This Washington Post article highlights the backlash against corporate diversity initiatives. The negative response often stems from the perception that these initiatives are driven by political correctness rather than genuine business or ethical imperatives. Rather than making grand declarations, focusing on specific, achievable goals and celebrating tangible outcomes is more effective. Ultimately, what defines a company is its actions, not its words.

The Impact of Words

The choice of words is crucial. For example, if you ask people if they support "ESG," you may get a different response than if you ask about "sustainability." Similarly, "DEI" might receive less support than "diversity" or "inclusivity."

The language used in communications can vary significantly based on political affiliations. For Republicans, terms like "underrepresented," "ESG," "DEI," and "gender" can be problematic. Among Democrats, terms like "patriotic," "faith-based," "traditions," and "conservative" might be less effective. Navigating these linguistic nuances is essential for expanding your reach and uniting diverse audiences.

The Role of Social Media

In today's digital age, the public is more informed and vigilant about business practices, largely due to social media. Platforms like Twitter, Facebook, TikTok, and Instagram enable rapid dissemination of information. This heightened transparency means that any decision a business makes—whether positive or negative—can quickly impact its reputation. Embracing transparency, ethical practices, and proactive engagement with stakeholders is essential for sustaining trust and ensuring long-term success.

Finding Balance

With so much divisiveness, can a company grow its market share without triggering controversy? It's challenging but possible. Some companies have navigated the semantics of sustainability and ESG effectively:

• Unilever: Through its Sustainable Living Plan, Unilever integrates sustainability into its core business strategy. Emphasizing practical benefits such as cost reduction and innovation, Unilever frames these initiatives positively for society and the environment. This balanced approach has helped achieve significant stakeholder buy-in.

• Patagonia: Known for its clear, straightforward communication and consistent demonstration of commitment, Patagonia's "Don't Buy This Jacket" campaign encouraged consumers to think before making a purchase, highlighting its commitment to reducing consumption and environmental impact.

Conversely, Bud Light faced backlash when it featured trans influencer Dylan Mulvaney in an inclusive marketing effort. This move sparked significant backlash from conservative groups, leading to a 17% drop in sales. This situation underscores the risks brands face when attempting to enter new markets without fully committing to their values.

Moving Forward

Given the importance and disclosure mandates of sustainability and ESG issues, business leaders must navigate this delicate balance. Here are some strategies:

1. Focus on Universal Values: Emphasize the universal benefits of sustainability and ESG initiatives, such as health, safety, and economic resilience. Framing these issues in terms of common values can help bridge ideological divides.

2. Use Clear and Neutral Language: Avoid jargon and politically charged terms. Use clear, neutral language that focuses on tangible benefits and practical aspects of sustainability and diversity efforts.

3. Highlight Business Benefits: Stress the business case for sustainability and diversity, including cost savings, risk management, customer growth, and competitive advantage. Demonstrating how these initiatives align with core business objectives can help garner broader support.

4. Engage Stakeholders Early and Often: Involve stakeholders in the conversation from the outset. This includes employees, customers, investors, and community members. Open, transparent dialogue can help build trust and mitigate resistance.

5. Go Bold or Go Home: If making a significant statement that may not align with your brand, consider the response from all angles and be comfortable holding your ground. If you can't stand up for your communications in front of all your stakeholders, don't do it.

6. Be Authentic and Consistent: Authenticity is crucial. Ensure that sustainability and ESG initiatives are genuinely integrated into the company's strategy and operations. Consistency in messaging and actions enhances credibility.

The Role of Leadership

Effective communication about sustainability and ESG starts at the top. Business leaders play a critical role in setting the tone and direction of these initiatives. Leaders with high emotional intelligence (EQ) can navigate the complexities of language and perception more effectively, understanding the importance of empathy, transparency, and authenticity in building trust and driving change.

In today’s complex environment, semantics as well as action matter more than ever. The language we use can either facilitate or hinder progress, making it essential for business leaders to communicate with care and precision. By focusing on universal values, using clear and neutral language, highlighting business benefits, engaging stakeholders, and demonstrating authenticity, companies can advance their sustainability and ESG goals without alienating key stakeholders.

Ultimately, the goal is to create a more sustainable and equitable world. By thoughtfully navigating the semantics of these issues, business leaders can drive meaningful change and build a more resilient future for their organizations and the communities they serve.