Zeus: Corporate ESG momentum threatened by first recession of the climate era

Lack of regulation takes vital climate strategies off priority lists.

Oct 5, 2022

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ESG may wait for global recession uncertainties to clear, but climate change and natural disasters wait for nothing. Hurricane Ian devastated western Florida, as seen in this Oct. 1 Coast Guard flyover of Sanibel and Fort Myers. Photo: U.S. Coast Guard/Petty Officer Third Class Riley Perkofski.

(David Callaway is founder and Editor-in-Chief of Callaway Climate Insights. He is the former president of the World Editors Forum, Editor-in-Chief of USA Today and MarketWatch, and CEO of TheStreet Inc.)

SAN FRANCISCO (Callaway Climate Insights) — The standard CEO playbook when facing a recession is to begin by reducing marketing costs. Scale back events, travel, new hires, anything that falls in the category of “like-to-have,” vs. “must have,” such as legal, sales, or finance. Where does ESG fall in this scenario?

For the first time since the rise of environmental, social and governance (ESG) strategies among public companies four years ago, global economies face recession. Unfortunately, and due in part to the lack of solid regulation tying ESG principles to material reporting, ESG looks to be coming out on the losing end.

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