Simplifying climate action messaging helps businesses appeal to more consumers and investors

When climate action messaging uses clear, simple language, businesses can appeal to a broader range of consumers and investors. Image: iStockphoto/AJ_Watt
- Consumers and investors want to know what businesses are doing about climate action – not only to ensure they aren’t harming the environment, but to protect product quality and profits.
- Businesses often separate arguments for climate action into different discussions about profitability and environmental, social and governance (ESG) ideals.
- New research shows why and how business leaders should use simple language to discuss climate action.
If you only listened to politicians talk about the role of the business community when it comes to climate and clean energy, you’d think there were two camps: those who oppose business taking action for ideological reasons and those who demand business takes action for idealistic reasons. The truth is, businesses can, and most do, make the case for climate and clean energy action because it's good for their bottom line.
Consumers and investors understand that failing to account for financial risks from climate change is a bad business decision, decreasing product quality and company profitability. They are also aware of the profitability and benefits of the clean energy industry and often reward brands that are focused on maximizing profit by leveraging such clean energy and climate opportunities.
Ultimately, however, consumers see businesses that address these risks and seize these opportunities as acting responsibly. They believe these companies will succeed over the long term as a result. Businesses can speak directly to the people who matter to them – consumers and investors – using a responsible business message framework.
This means no longer making separate and siloed arguments for climate action – one about profitability and one about commitment to environmental, social and governance ideals. These issues are one and the same and should simply come under the category of running a responsible business.
Recent research conducted by communications consultancy maslansky + partners shows how and why businesses should talk more about climate action in this way.
Climate action: A moral issue with a material impact
Climate change is one of the most complex moral issues of our time. Businesses must deal with the material aspects of the challenge: the risks to their workforces, shareholders and bottom lines. And consumers expect that businesses are responding to climate risk and investing in clean energy because it is material to them.
Businesses and consumers overwhelmingly appreciate the responsibility, risk and opportunity that comes with climate action. According to the research, around 70% of investors believe "there is a lot of money to be made in the clean energy transition" and that clean energy technology will outperform the market in the next decade. Only three out of 10 say the same about fossil fuel investments outperforming the market.
The research also found that seven in 10 consumers agree that businesses face significant climate-related risks that could negatively impact their financial performance. The catastrophic devastation wreaked by Hurricane Helene last year is another example of far-reaching physical and financial climate risks. Elsewhere, towns in California are sliding into the ocean, US homeowners’ insurance rates are skyrocketing and families around the world are losing their homes to "once in a century" floods.
Unsurprisingly then, 80% of investors believe publicly held financial services companies that anticipate climate risk are more likely to succeed financially. It’s clear that investors and consumers understand that responsible businesses will embrace the opportunity and account for climate risk in their business strategy. There is a return on responsibility.
How businesses should talk about climate action
The climate conversation often uses complex jargon that few lay people really understand – from acronyms like ESG to more granular terms like scope 3 emissions. Both are difficult to explain and easy to attack.
Reframing climate messaging around materiality rather than morality will appeal to the broadest set of stakeholders. To do this, business leaders can make three simple changes:
1. 'ESG' is confusing, use 'responsible business' instead
The term "ESG" has roots in the world of global economics. It was never designed to be the face of a movement or to make it into the headlines. Over time, this acronym has taken on a life of its own. The average person has little idea what it means, but may associate it with a specific political agenda.
"Responsible business" is a much more effective term that communicates the ideas behind ESG while avoiding political baggage. Consumers and investors are more likely to understand that "responsible businesses" are the ones that honestly and impartially assess the risks and opportunities they face – and make strategic decisions that are in the best interest of their business.
To these audiences, it makes complete sense that a "responsible business" is going to secure its energy resources for the future, take care of its employees, hold its leaders accountable and protect its relationships with the communities whose trust it depends on.
2. Swap 'climate change risk' for 'climate risk'
One word can make the difference. When researchers replace the term "climate change risk" with "climate risk", 22% more investors agree it’s a "very" or "extremely" important risk for financial services firms to evaluate. This includes more than one-third of respondents who identify as Republican.
3. Shift from abstract and values-driven to clear and values-oriented
When talking about making responsible business decisions, messages should be clear, familiar and based on material impact. The research shows 73% of consumers prefer companies to focus on "protecting plants, animals and their habitats" versus 27% who prefer "protecting biodiversity". Further, 74% would rather hear about companies that make sure their partners are reducing carbon pollution as opposed to 26% who would prefer to hear about companies "reducing scope 3 emissions".
By simplifying and strengthening the language around climate with everyday, concrete words and focusing on responsible business, a company can demonstrate that it understands the need for action while minimizing political backlash.
The forces that are against climate action show no signs of throwing in the towel. But brands do not need to shy away from robust climate communications and advocacy that bolsters their investment in clean energy.
The data is clear: By leading responsibly and speaking confidently about climate and clean energy, businesses can create a successful playbook that reaps huge financial and reputational rewards while also supporting climate solutions.
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