ESG Does Not Have to Die
In mid-2025, the media reports: “ESG is dying!” Meanwhile, data shows something completely different. EY research indicates that investors still place great importance on ESG – but now more than ever, they expect concrete, measurable results, not just flashy reports.
The problem isn’t with ESG itself, but with so-called “ESG theater.” Companies published impressive reports that didn’t translate into real change.
An update from Harvard Law School at mid-year clearly shows that ESG performance is becoming increasingly important to investors. It’s no longer about PR – it’s about finance.
Companies with weak governance will struggle with long-term investments. Social issues such as lack of diversity or poor labor practices are important risk indicators.
Investors Say: Show Me the Numbers
The tone has changed. Instead of “we have a diversity program,” investors ask: “What percentage of women are on the board? How has that number changed over the past three years?”
The Harvard Law Forum emphasizes that stakeholder capitalism (managing for all stakeholders, not just shareholders) is now an undeniable business model.
The problem is that 83% of marketers believe their brand fulfills a purpose, while only 43% of consumers believe them. The WEF clearly points out that this is not an ESG problem, but one of communication credibility.
Risk: When ESG Reveals Weaknesses
S&P Global Market Intelligence analyzes that companies publishing detailed ESG metrics often reveal their own weak points. However, this is a positive signal – it means transparency.
Example: Company X publishes a report showing it has 20% women on its board. Investors respond: “Two years ago it was 30%. What happened?” As a result, the stock price drops.
If they hadn’t published it, no one would have known. By publishing, they expose themselves to criticism. This is the price of transparency.
Practice: How to Communicate ESG Honestly
PR agencies face a dilemma: publish unfavorable ESG data or hide it?
The answer is: publish it, but with proper context. Saying “we have 20% women on the board” is not enough. Better to say: “We have 20% women on the board, our goal is to reach 30% by 2027, and we are taking actions X, Y, Z to achieve this.”
Companies doing this well include:
- Patagonia – publishes precise data on environmental impact,
- Unilever – detailed reports on diversity,
- Novo Nordisk – transparent initiatives for equality in healthcare.
The effect? These companies enjoy greater investor trust – not because they are perfect, but because they tell the truth.
The Future of ESG: From Marketing to Business
In 2026, there will be companies that truly implement ESG and companies that only talk about it. Investors are increasingly willing to fund the former, not the storytellers.
In corporate communication, ESG is shifting from “sustainability marketing” to “business responsibility.”