Davis Polk counsel and Environmental practice head Loyti Cheng discussed shifts in ESG communication strategies with IFR.

Loyti noted that some companies have changed their vocabulary when describing their sustainability efforts in order to avoid ESG controversy. “They might label it ‘climate’ or ‘human capital’ instead of ESG in public documents,” she explained.

When asked whether the upcoming 2024 election might further impact ESG, Loyti noted, “If there’s a shift in the administration, the anti-ESG backlash is going to continue in full force.”

US issuers play down ESG terms amid backlash,” IFR (February 2, 2024) (subscription required)