Special Report: Strategic Messaging in a High-Stakes Landscape, Part 1: ESG, Sustainability, and Climate
AUTHORS: CARLI SCHOENLEBER, PAULYNN CUE, AND MARY REAMES
RESEARCHERS AND REVIEWERS: RHEA THOMPSON, SHAUNA ARCHER, AND GABE JOHNMAY 19, 2025Summary
As scrutiny around environmental, social, governance (ESG) intensifies, companies are adapting their communication strategies to balance transparency, legal risk, and stakeholder expectations. While some companies are rebranding or downplaying ESG terminology, sustainability goals continue to be integrated into business strategy. This report examines corporate and investor trends related to anti-ESG legal and political pressures, specifically focusing on ESG, sustainability, and climate. It also provides a commercial real estate (CRE)-specific strategic messaging framework for refining ESG messaging while maintaining commitments and stakeholder trust. This report is Part 1 of Verdani’s strategic messaging series, developed in tandem with Part 2 on diversity, equity, and inclusion (DEI).
Highlights
Companies are adapting to anti-ESG pressures: Some firms are rebranding ESG terminology, shifting toward language like “risk management” and “resilience,” while others are reducing public disclosures but continuing to pursue ESG initiatives (i.e., greenhushing). Each approach carries distinct risks and benefits, from maintaining investor trust to avoiding political backlash.
Continued investor demand for ESG data: While some investors have become more cautious in public ESG advocacy, demand remains strong for ESG disclosures, with frameworks like GRESB and CDP seeing growing participation. At the same time, regulatory uncertainty and short-term financial pressures have led some investors to deprioritize aggressive ESG targets, balancing long-term financial stability with short-term returns.
5-Part ESG strategic messaging recommendations for CRE: This report introduces a five-part framework to help real estate firms refine ESG messaging. It provides guidance on understanding positioning through a unique set of postures and assessing communication risks, aligning messaging with investor and regulatory expectations, mitigating legal exposure, monitoring policy changes, and developing a scalable communication strategy that ensures efforts remain effective in a shifting political environment.
Introduction: ESG’s Rise and Backlash
Over the past three decades, sustainability and ESG have shifted from niche topics to key factors shaping corporate strategy, especially in CRE, touching core business functions like capital planning, compliance, human resources, and risk management. This shift is driven by heightened market expectations on efficiency, expanding sustainability-focused regulations, social movements, and international action on climate change, with businesses using ESG frameworks to mitigate risks and identify opportunities for long-term value creation.
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