Companies Continue Shift Away From ‘Politically Charged’ Terms

Companies have continued to abandon more “politically charged” terminology in response to the change U.S. policy landscape.

According to a recent study by The Conference Board, the number of S&P 100 companies using the term ESG—environmental, social, and governance—in their annual sustainability report titles fell from 40 percent in 2023 to 25 percent in 2024.

Of the nearly 50 percent of companies that have submitted sustainability reports this year, the firm added that only 6 percent have used the term.

Why It Matters

Since the beginning of President Donald Trump’s second term, many companies have scaled back or abandoned previous commitments to more politically contentious practices, specifically those concerning diversity, equity and inclusion (DEI). This has been viewed by some as the private sector bowing to pressure from the administration—which has vowed to crackdown on “illegal,” non-merit-based hiring—and resulted in boycotts and protests of major brands including Walmart and Target.

What To Know

The Conference Board’s report was based on public disclosure data from companies in the S&P 500 and Russell 3000 Index, current as of April 11, as well as polls of sustainability executives at over 60 American and European firms.

While the report said that the changes to environmental reporting had not yet resulted in widespread alterations to companies’ “strategies or commitments,” it nonetheless credited the changes to firms reacting to “changing U.S. policies.”

It added that companies were increasingly concerned about sustainability reporting amid “political and regulatory uncertainty.” Their research found that, 10 percent were “more optimistic” about this than last year, with 31 percent “more concerned,” 34 percent “uncertain,” and 14 percent “overwhelmed.”

In addition, 8 percent of surveyed sustainability executives reported that their companies had begun reevaluating their definitions of “sustainability” in light of the evolving policy landscape.

Since resuming office, Trump has rolled back a number of measures focused on environmental protections, terminating initiatives aimed at tackling climate change while reframing the focus of the nation’s relevant agencies on “unleashing” America’s energy independence.

Pushes for environmental deregulation have accompanied a reduction in environmentally-focused roles within government. In a February 11 press release, the Environmental Protection Agency (EPA) announced that DEI and employees involved in “Environmental Justice” would be placed on administrative leave.

Environmental, social, and governance disclosure requirements have also begun shifting during Trump’s second term. In February, acting Securities and Exchange Commission Chairman Mark Uyeda announced that the agency would pause its defense against legal challenges to a Joe Biden-era disclosure rule requiring publicly traded companies to report climate-related financial risks.

Climate tech firm Asuene, which offers sustainability solutions including those related to ESG and carbon accounting, described the changes made by the Trump administration as a initiating a “seismic shift in America’s climate governance structure.”

What People Are Saying

Andrew Jones, principal researcher at The Conference Board Governance & Sustainability Center, said: “Many companies are adjusting terminology in response to backlash, adopting terms in their report titles that are less politically charged, like ‘sustainability’ and ‘impact.'”

EPA administrator Lee Zeldin, in a February press release, said: “Under President Trump, the EPA will be focused on our core mission to protect human health and the environment, while powering the great American comeback.

“The previous administration used DEI and Environmental Justice to advance ideological priorities, distributing billions of dollars to organizations in the name of climate equity. This ends now. We will be good stewards of tax dollars and do everything in our power to deliver clean air, land, and water to every American, regardless of race, religion, background, and creed.”

What Happens Next?

In its report, The Conference Board said that companies were continuing to make progress in their sustainability- and climate-focused goals, but that in recent years “the median target year to achieve such targets shifted from 2030 to 2035.”