ESG is dead. Long live ESG storytelling.
Marianne O’Connor is CEO of Sterling Communications.
Remember when every tech company couldn’t shut up about ESG? Environmental, social, governance — three magic words that made press releases sound responsible, forward-thinking, and vaguely European. Investors loved it, the media ate it up, and for a while, it seemed like companies that weren’t jumping on the ESG train were about to get left behind.
Fast forward to 2025. The GOP has run the table. Elon Musk and a new wave of Silicon Valley VCs are louder than ever about their anti-woke, anti-ESG crusade. Wall Street pretends it never really cared about ESG in the first place. BlackRock’s Larry Fink, who practically invented corporate ESG hype, now avoids the term like it’s radioactive.
But before we have a wake for woke, consider that maybe what ESG initiatives need to stay alive is better branding.
Here’s how companies that care can gain traction on some very slippery slopes.
- Stop calling it ESG. Call it business.
Companies aren’t suddenly abandoning efficiency, risk management and sustainable growth. What they may consider doing is swapping out language political operatives have turned toxic into something more market friendly. Nobody in a Fortune 500 boardroom these days wants to be accused of being “woke,” but they do want to cut costs, optimize supply chains and attract capital. ESG storytelling needs to evolve into pragmatic business storytelling.
Take cleantech. Instead of hyping “carbon neutrality,” smart companies should talk about “energy resilience” and “reducing dependence on foreign oil.” Not because they care about ideological battles, but because these things sell — especially in a political climate where Red State America loves energy independence but hates climate activism.
- Follow the money. Investors still care about risk and value.
Even the most conservative friendly fund managers aren’t throwing all ESG considerations in the trash. They still care about sustainability — when it affects risk. They still care about governance — when it protects shareholder value. They just don’t want it labeled ESG anymore.
BlackRock, Vanguard and Goldman Sachs will continue to factor in environmental risks and supply chain ethics, because they always look at risk factors that matter. But their annual reports will probably use terms like “long-term resilience” or “strategic risk mitigation” instead of ESG. Same thing, new brand.
- Make it about the economy, not the culture war.
One of the biggest mistakes of the ESG boom was letting it get tangled up in progressive politics. When companies positioned sustainability or DEI as “moral imperatives,” they made themselves easy targets. In 2025, it would behoove them to focus on “economic imperatives” instead.
For healthtech, that means saying “AI-driven patient care lowers costs and expands access to rural hospitals” instead of “AI improves health equity.” For cleantech, it’s about “job growth in advanced manufacturing” instead of “the fight against climate change.” B2B tech? Talk about compliance and operational efficiency. Big enterprises still want vendors who won’t get them sued or regulated to death.
- Avoid “woke-washing.” Nobody buys it anymore.
Even two years ago, slapping ESG buzzwords on a press release might have been enough to earn some goodwill. Now? If your ESG messaging doesn’t have a direct business case behind it, it’s just begging for backlash.
A lesson from Disney and Bud Light: Consumers can smell corporate BS a mile away. Performative virtue signaling is out (or, at least it should be). If your sustainability or governance initiatives don’t tie back to measurable, real-world business outcomes, don’t bother mentioning them.
- The rest of the world still cares about ESG.
Of course, this is mostly an American political problem. Europe? Still ESG-obsessed. Asia and Latin America? Still prioritizing sustainability and social responsibility. If your business has a global footprint, you can’t afford to ignore ESG. You just have to be smart about where and how you promote it.
A Silicon Valley B2B technology company that sells AI solutions to both U.S. and EU markets can position its tech as “cost-effective automation” in the U.S. and “ethically responsible AI” in Europe. Same solution, different value proposition pitch. ESG storytelling today is all about understanding your audience’s hot buttons.
The bottom line
The term ESG may wither on the vine, but its core was always about making businesses more resilient, efficient, and attractive to investors. That isn’t going anywhere. The trick in 2025? Drop the politics. Keep the business case. ESG isn’t a moral stance anymore. It’s just good business.