Let’s talk about the “W” word

Despite the backlash against so-called “woke” capitalism and ESG goals,?consumers and business buyers value companies that walk their talk more than ever. If a company cannot articulate its purpose and values, they’ll be unable to play the long game.?

Communicating ESG initiatives through data and storytelling help boost a brand’s credibility — as long as they don’t engage in?greenwashing.

Why it matters:?According to the?USC Annenberg Center for Public Relations, “Today, consumers are making more demands, employees are more vocal and investors are scrutinizing every aspect of a company’s behavior. Corporate reputation has become the determining factor for the products they buy, the jobs they choose, and the stocks they invest in.”?

Nevertheless, 19 states?have?formed an anti-ESG alliance.?Florida Governor Ron DeSantis says, “Florida has led the way in combatting the pernicious effects of the ESG regime by directing our state pension fund managers to reject ESG and instead focus on obtaining the highest return on investment.”

Details:?McKinsey says, “what some [ESG] critics overlook is that a precondition for sustaining long-term value is to manage, and address, massive, paradigm-shifting externalities.”

But these externalities, such as a company’s greenhouse gas emissions,?have become a pressing challenge — which is why it is crucial for businesses to make ESG goals economically viable.?A?study by the IBM Institute of Business Value?cautions that, “while?86% of executives say their organization has a sustainability strategy in place, only 35% have acted on it.”

Dig Deeper

• More than 2 out of 3 people say environmental issues are very or?extremely?important to them
• The greenwashing era?is?arguably over, at least in the EU and UK
• Business fights back as Republican state lawmakers push anti-ESG agenda

ESG is the key to attracting Gen Z talent

Companies that want to attract Gen Z talent need to consider ESG initiatives that will attract those who believe a company’s mission, purpose and values are essential.

Why it matters:?The?2023 Gen Z and Millennial Survey from Deloitte?found that 55 percent of people in Gen Z research a brand’s environmental impact and policies before accepting a job. In addition, 17 percent say they’ve already switched jobs or sectors due to climate concerns, and a further 25 percent say they plan to do so in the future.

Details:?Gen Z’s top personal priority?— ranking above unemployment and health care — is climate change?and protecting the environment, according to a study by Deloitte. Little wonder, then, that many in Gen Z are?“Climate Quitters”?— a group of people leaving jobs to join environmentally friendly companies. Given that members of Gen Z are from 8-year-olds to people in their mid-20s, they will make up a significant portion of the talent pool for decades to come — and businesses can’t afford to alienate them.

Dig Even Deeper

• Gen Z say they reject jobs over a company’s climate credentials
• Why your ESG strategy needs to apply to a younger generation
• Gen Z and the business of being woke

Communicating with purpose is at the core of our work at RPG.?A new technology reckoning is coming,?and with it, a growing imperative to communicate the urgency of climate change and the importance of ESG initiatives.

What conversations matter to you? Hit us up and?we’ll dig a little deeper together in a future edition.

Bob?Osmond, president, Racepoint Global?