WHAT do we say… right now?

Mar 18

published 3.18.25

In 2025, companies are facing heightened challenges in continuing to advance ESG and DEI initiatives. To help our clients navigate this complex landscape, we convened leaders from across industries—tech, e-commerce, consumer goods, beauty and more—for a closed-door session to discuss how impact teams can evolve their strategies and carry on. The following distills key insights from our roundtable discussion.

Through its many iterations over the decades—philanthropy, CSR, sustainability—ESG has always been a balancing act. Every seasoned industry professional knows the work often takes a backseat to a company’s bottom line, and that securing internal buy-in can be a constant struggle. The public, for its part, has long been skeptical of the sincerity of corporate impact programs and the role businesses can authentically play in driving positive social change. Only 41% of Americans believe companies should take public stances on social and political issues, according to a 2023 Gallup poll. And yet, in recent years, there was a sense that ESG was becoming an imperative, with new disclosure requirements and rising stakeholder expectations increasing the pressure for greater transparency and—at a minimum—voluntary reporting.

As we all know, things look different this year. Faced with regulatory uncertainty and a growing anti-ESG and DEI movement—spurred in part by recent Supreme Court decisions—companies are reevaluating climate and social commitments. Investors are now treading carefully, legal teams are tightening risk assessments and executives are weighing how (or if) to talk about their commitments publicly. While much remains in flux, one thing has become clear: the work isn’t stopping—but it is evolving. Companies are doubling down on materiality and honing new ways to communicate and drive impact without triggering unnecessary controversies. The question isn’t whether ESG or DEI will remain relevant, but how we approach it today and for the foreseeable future.

Against this backdrop, qb. brought together leaders from across the impact space to discuss how they’re adapting. With the goal of acting from a place of clarity and resilience rather than retreating or reacting with fear, we talked about what’s working, what’s at stake, and how to prevent today’s challenges from erasing years of progress. This is what we learned:

1. Don’t Overreact to Anti-ESG & DEI Backlash

A polarized political climate has made ESG and DEI more contentious. Yet while conversations may be quieter, many stakeholders—investors, employees and customers—still value these principles. Backing away from ESG commitments entirely or weakening disclosures now risks reputational damage (cough Target cough) and employee disengagement that could lead to competitive disadvantages down the line. However, instead of engaging in bold virtue signaling on politicized topics, companies should turn their focus to the highest-priority, most material ESG issues. The pendulum will swing back, and if companies abandon this work now, they’ll have to rebuild it later—at a greater financial and reputational cost, and at a loss to their integrity. In the meantime, we have an opportunity to refine the way we communicate what we do, reevaluate our impact and make sure our work is substantive rather than performative.

From our roundtable: “We don’t always have to tout the million things we’re doing. We can do them silently and keep our receipts. Then, when the time is right, we can show that this has been our ethos all along.”

2. Materiality Over Morality: Framing ESG as a Business Imperative for Stakeholders

ESG and DEI efforts should be positioned as critical business strategies - not moral obligations. Stakeholders aren’t telling us not to do this work—they’re just saying they’re not focusing on it right now. That’s a big difference. In fact, many B2B companies are actually seeing an increase in ESG due diligence requests, making disclosures essential to customer and revenue retention. Risk mitigation, compliance and operational efficiencies all provide clear business value—and that's something we should be communicating to executive teams.
From our roundtable: “You have to show business leaders how this work affects them—not in a theoretical way, but in black and white, bottom-line terms.”

3. Refining ESG & DEI Language Without Losing Impact

Sometimes the real debate is just about wording, not the actual work. Companies are adjusting the language they use in order to keep making an impact and avoid politicization. Shifting from “ESG” to “responsible business” or emphasizing material sustainability issues helps avoid divisive connotations. DEI teams in particular are reframing their initiatives around “belonging” not just for better positioning, but because making people feel like they belong drives talent retention—the core goal of DEI work. Being strategic about language isn’t about pulling back, it’s about ensuring our messaging resonates with stakeholders while protecting the integrity of our work.

From our roundtable: “For some stakeholders, ‘ESG’ can be a loaded term. But ‘responsible business’ or ‘long-term value creation’? That’s an easier conversation.”

4. Building Internal Bridges & Securing Buy-In

Getting in the right rooms is a big part of ensuring our work can continue. As internal experts, impact professionals must act as trusted advisors to executives, legal and investor relations teams during times of uncertainty. Legal teams play an especially central role in defining acceptable risks and guiding disclosures. Working closely with them allows companies to find internal cohesion and the right framing to keep impact work moving forward. Securing their buy-in, along with leadership’s, means demonstrating direct business benefits, including:

Competitive advantages in talent acquisition, investor appeal and consumer trust;
Staying ahead of changing regulations and avoiding unwanted legal or public scrutiny.

From our roundtable: “If a big scary monster seems to be coming after us, we need to be clear on what that really looks like and what risk it actually poses. Often, it’s not a key stakeholder—just a loud outsider with a strong opinion who is not our priority.”

5. Strategic Storytelling & Crisis Communication: Prepared and Proactive, Not Reactive

When and how we tell our story matters. That’s why it’s important for companies to be intentional about responding to external pressures. While some issues require public acknowledgements and statements, others are best addressed internally. Defining response frameworks helps ensure consistency in messaging, fairness and internal alignment with business priorities. If impact work is built into core business strategies, then companies can own the narrative instead of reacting. This helps avoid knee-jerk reactions that could create unintended and unnecessary risks. Working in a volatile environment calls for us to refocus on what’s still within our control: meaningful employee engagement, community involvement and long-term planning.
From our roundtable: “We can’t control the political landscape, but we can control how we show up for our people and our customers.”

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