A new report from The Conference Board reveals that a significant majority of large corporations are actively revising their environmental, social, and governance (ESG) strategies. This widespread recalibration, affecting 80% of firms surveyed, is a direct response to evolving political and regulatory landscapes, coupled with intensifying scrutiny.  

A key tactical shift involves messaging, with over half (52%) of sustainability executives reworking their communications. Notably, many are stepping away from the term “ESG” altogether, as the concept has “faced mounting scrutiny,” according to Andrew Jones, Principal Researcher at The Conference Board and author of the report. Jones noted that the backlash has pushed companies to “recalibrate how they approach, communicate, and integrate these issues into their businesses” rather than abandon them. 

The report highlights a growing wave of resistance, with a striking 90% of executives anticipating continued or increased anti-ESG sentiment over the next few years. This marks a significant jump from 63% in 2023. The most targeted areas include climate-related commitments, such as net-zero goals, and the use of ESG-specific terminology. Interestingly, the perceived drivers of this backlash have shifted: executives now primarily point to federal policymakers as the main source of anti-ESG sentiment, a change from two years ago when activists and advocacy groups topped the list.  

Beyond direct backlash, new trade measures are also impacting sustainability efforts. Two-thirds (66%) of respondents believe tariffs will hinder progress on their sustainability goals, and nearly half (45%) foresee delays in sustainable investment decisions. 

These findings are based on a March-April 2025 survey conducted by The Conference Board, polling 125 sustainability executives from large U.S. and multinational firms. The report underscores a dynamic environment where companies are adapting their ESG approaches to navigate a complex and increasingly challenging landscape.  

Source: 

https://esgnews.com/report-80-of-corporations-recalibrate-esg-strategies-in-response-to-policy-shifts/