PR’s Key Role in Shaping Companies’ DEI Narratives and Strategy

Just a few years ago, leaders of many companies thought ESG (Environmental, Social and Governance) was a passing trend. They were wrong.

Not only is ESG here to stay, despite some bumps; it continues to gain traction.

Since 2016, investment in financial products that claim they adhere to ESG rules has grown, from $23trn to $35trn, The Economist reports. Bloomberg Intelligence believes this figure could reach $50trn in 2025.
Investors Pay Attention
For investors, this means viewing ESG as important criteria. It can be a differentiating factor in selecting one company over another and supporting board members.

Consider:

Reuters reports “investors concerned about climate change and social justice had a bumper year in 2021, successfully pushing companies and regulators to make changes amid record inflows to funds focused on ESG issues.”
The world’s leading proponent of responsible investment, PRI reported 97% of its approximately 4,800 asset and investment owner signatories incorporated ESG factors into their equity investments in 2020.

The environmental and social components of ESG have attracted the interest of the U.S. Securities and Exchange Commission (SEC) and other regulators.