How should business message on climate? Emphasize materiality, not morality.

New research shows climate messaging strengthens brand trust

In a polarized political environment, and with the recent ESG backlash, communicating about climate has begun to feel risky for a publicly-traded company. Many have pulled back or gone quiet.

But the data says that shying away from talking about climate initiatives is the wrong approach.

We conducted 6 waves of research in the last 18 months, with almost 15,000 consumers and investors, to understand whether climate messages were advantageous to corporate brands, and what their best approach to messaging should be. In the U.S. and five additional markets we studied, the data clearly shows that climate is a positive message for corporate brands with both audiences. If you do it well.

Our findings show that effective business messaging on climate can strengthen credibility and deepen trust with both consumers and investors.

We see strong support for companies reducing carbon pollution, investing in clean energy, and communicating about their efforts to do so. In fact, consumers report being more likely to buy from, admire, speak well of, and even work for brands that take these actions.

But the framing matters. When climate change is talked about in language that feels political – and much of ESG framing falls into this camp – the data shows that backlash can be real and there is potential for pushback from a skeptical minority. Businesses can avoid these pitfalls with the right message.

• Talk materiality, not morality. The key to appealing to the broadest set of stakeholders is to frame climate action around materiality – not morality. In other words, businesses invest in climate-related efforts not just because they’re good, but because they’re good for business.

• Investing in clean energy and reducing carbon emissions is a business opportunity. People will reward companies who are seen as responding to change. Investors and consumers alike believe clean energy technology will shape the future of the economy.

• Climate risk is business risk. Furthermore, they believe climate change is creating new physical and financial risks across industries. They view companies that account for these factors as leaders. And they believe responsible businesses will address these risks, seize these opportunities, and succeed over the long term as a result.

When climate risk becomes part of a company’s brand messaging, it signals a strategic approach rather than a defensive one.

Our past research shows framing climate change as a moral issue, rooted in love and the desire to protect the planet for future generations, is incredibly effective to move citizens to action. See another of our reports, Later is Too Late, for a prime example.

But when businesses are the messenger, the context is different, especially in today’s political climate. Therefore, so are the messages that are most credible and compelling. The data clearly shows that the best way for businesses to broaden support without antagonizing skeptics is to frame corporate action through the financial materiality of climate-related risks and opportunities.

Download our latest report The return on responsibility: The business benefits of communicating on climate here for more details.