Just weeks into the new year, we’ve already seen a bid to buy an entire resource-rich country, US DEI personnel put out to pasture and the leader of the free world threatening to pull out of the Paris climate agreement.
In January, scientists reported that planet-warming gases grew faster than ever in 2024, Personnel Today reported that it will take another 40 years to close the gender pay gap at the current rate and the extreme right continued to surge. You could be forgiven for feeling a little bleak about the prospects for ESG progress in the year ahead.
There are reasons to be optimistic.
As a PR agency, we’ve been banging the drum for decades about the critical role that a strong reputation plays in creating resilient business brands, with enough goodwill in their reputation bucket to weather the inevitable bumps in the road.
It is most definitely not the time to take our ESG cues from Trump or Musk.
Being a force for good is good for business
In economically turbulent times, highlighting the connection between sound financial performance and investment in ESG initiatives has got to be a key lever in making the case for board level support.
A study by McKinsey & Company found that products making environmental, social and governance (ESG)-related claims experienced faster growth than those that didn’t. And according to a survey by PwC, consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even amidst concerns about the cost of living and inflation.
Research published by Accenture suggests that if all UK companies improved inclusivity by 10 percent, the resulting innovation could increase GDP by up to 1.5 per cent each year.
The global B Corp movement – a global community of for-profit businesses that have pledged to transform the global economy for the benefit of all – firmly believes this stakeholder-centric model is good for business. And the movement is growing. With 2,300 certified B Corps in the UK alone, London is the second largest B Corp market after the US (where the movement began). Midnight proudly joined the B Corp community in September 2024.
B Corp’s detractors have pointed to the large proportion of privately held SMEs that make up the B Corp community – after all achieving B Corp certification includes making a legal amendment to articles of association, committing to benefit all stakeholders, not just shareholders.
There are positive signs that UK plc is forging ahead on its own planet and people-friendly path.
According to PwC’s 28th Annual Global CEO Survey, published in January 2025, 60 per cent of the 4,701 CEOs polled expect global economic growth to increase over the next 12 months – and climate-related investments were shown to be six times more likely to have driven increased revenue (3 per cent) than to have decreased revenue (5 per cent).
The power of the brand
Climate-friendly initiatives are only one aspect of creating truly sustainable businesses – businesses that not only endure but also thrive over time, generating goodwill that supports them even in challenging circumstances.
In financially difficult times, the power of strong brands is more important than ever.
It’s the reason many would shun fast fashion brands, instead forgoing other purchases to splash out much more on ethical high-quality brands like Patagonia. Buy well buy once – and feel good about your purchase too.
Brand trust is hard won, but once gained, it endures where weaker, self-serving brands flounder.
Stakeholder benefit drives trust
Edelman’s 2025 Trust Barometer, the 25th anniversary edition, published in January, drills into the crisis of widespread societal grievance, driven by economic fears and deep disillusionment with business and governments that are perceived to serve narrow interests. There’s a sense that business and government make their lives worse, while the rich get richer.
Richard Edelman’s preface states: “Business has emerged as the default solution on societal issues given that many people believe businesses are more competent (+48 points) and more ethical (+29 points) than Government {…} Business has the potential, and much of the public’s permission, to address societal issues.”
Clearly, there’s potential – and an expectation – for business to lead the charge in driving societal improvements – and that needs to start with putting stakeholders, not just shareholders – at the centre of decision making.
Businesses that prioritise the wellbeing of their employees, customers, clients and wider stakeholders and invest in long-term sustainable development are more likely to achieve lasting growth. This growth isn’t limited to financial metrics but also includes building resilient communities and fostering positive societal change.
A 2020 analysis conducted by McKinsey found that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile – up from 21 percent in 2017 and 15 percent in 2014.
The future of PR and sustainability
As more and more businesses integrate sustainability into their core values, the role of the PR partner is evolving. These are exciting times indeed, and we’re finding the shift both stimulating and fulfilling. Our work with some of the most progressive businesses in the country allows us to advocate for meaningful change, leveraging our expertise to promote both environmental and social improvements.
We are always learning – and we’ve had a few bumps in the road – but ultimately, we understand that building a sustainable business is a multifaceted endeavour that requires a commitment to both environmental stewardship and social responsibility. By prioritising these areas, companies not only enhance their reputations but also contribute to a more equitable and sustainable world.
As B2B PR experts with 30 years in the game, we’ve come to see that the best approach is holistic and includes social accountability. It’s also an opportunity for companies to distinguish themselves from their competitors by embracing sustainability in its broadest sense, integrating ethical practices and prioritising society’s best interests.
Contact us today to discuss your objectives.
