The Return on Responsibility: the business benefits of communicating on climate
María Mendiluce
In a complex and fast-evolving global landscape, and an often-polarized political environment, businesses are taking an increasingly cautious approach to climate communications and advocacy. However, our research shows that it is much better to lead responsibly and speak confidently on climate action.
I am delighted to share The Return on Responsibility – a new messaging guide for businesses produced by Potential Energy Coalition in partnership with We Mean Business Coalition and maslansky + partners.
Grounded in extensive audience research and messaging insights, the guide unequivocally demonstrates the business imperative – and rewards – for tackling climate risks head on and talking about their investments in clean solutions publicly. It aims to help companies to confidently appeal to key stakeholders, while minimizing the potential for pushback.
I encourage business leaders to use these learnings and recommendations. Businesses that capitalize on the return on responsibility will be best positioned to succeed in the short- and long term.
What the research tells us
The guide features new polling analysis and message frameworks informed by rigorous qualitative and quantitative research conducted over a 13-month period.
The research was primarily conducted with investors and consumers in the U.S., as this is where companies are most often cautious about navigating the political environment. As a helpful comparison, a round of research was completed in five other countries: the U.K., France, Germany, Japan and Brazil.
It shows us that people are more likely to buy from, work for, admire, and speak well of companies that take climate actions such as reducing carbon emissions or investing in clean energy. This signals the kind of responsibility, savviness and innovation that gives stakeholders confidence. Framing climate action as a commonsense business strategy, because it is material to business, yields more benefits and less controversy for companies.
Investors and consumers agree that climate risk is business risk:
- Across the six countries tested, approximately 9 in 10 consumers believe that most major industries are being affected by climate-related factors
- 7 in 10 consumers in the countries tested agree businesses face significant climate-related risks that could negatively impact their financial performance
- Consumers in all countries tested perceive climate risk across many industries, with the highest perceived effect (80%) for construction, energy and agriculture
- 60% of US investors across the political spectrum agree climate change is causing a lot of damage that can hurt a company’s financial performance
Investing in clean energy and reducing carbon emissions is a business opportunity:
- Almost 6 in 10 consumers in all countries would be more likely to buy from or support brands that reduce their carbon pollution or invest in clean energy
- 3 in 4 consumers across all countries tested believe that companies committed to using more clean energy will perform better financially
- US retail investors expect clean energy to outperform almost every economic sector except AI over the next 10 years, and over 70% believe clean energy will beat the market over the next 10 years.
How to harness the return on responsibility
Building on key insights from the research, companies can reap the rewards of business growth, investor confidence and consumer loyalty by following key principles.
- Talk materiality, not morality: For business leaders, climate risk is a material, everyday business concern. Speaking about it that way creates authentic alignment between message and messenger. Consumer pushback can occur when messages feel subjective, moralistic, or self-righteous – and disconnected from the role of a business leader.
- Risk, opportunity, responsibility: When businesses frame climate risk as business risk, and clean energy as opportunity for growth, this encourages the likelihood that people perceive these companies as “responsible businesses” that are accounting for climate factors in their business strategy and positioning themselves for financial success.
- Language matters: Empty terms make easy targets. Jargon is not a shield from scrutiny; rather, it invites skepticism. Simplifying and strengthening your message with everyday, concrete, human language makes it far more effective.
Why it’s time to lead responsibly
Stakeholder expectations aside, climate action is increasingly a necessity for business. Extreme weather events, relentless heat waves, floods in some places and droughts in others – the intensifying effects of climate change impact how businesses operate every day. The cost for businesses of these climate events can drive some to bankruptcy. Hence these costs need to be part of the equation when making decisions.
From rising insurance and infrastructure repairs to vulnerable supply chains, these are challenges that business leaders need to face head on. Caring about the climate isn’t optional.
At this critical time, being vocal matters. As the planet overheats, we are experiencing contentious elections, a volatile economy, soaring geopolitical tensions, a rapid rise in misinformation , and well-funded efforts to stoke culture wars and public backlash to critical social policy.
Climate leadership from the business community can set the tone for world leaders, who are currently updating their national climate plans (Nationally Determined Contributions) as required by the Paris Agreement. By demonstrating the work that business is already doing and calling for governments to set ambitious NDCs backed by clear targets, policies, and timelines, companies can create a virtuous circle of fast-flowing investment, accelerated action, and ratcheted ambition.
As this research clearly shows, business can take confidence that there is strong support for companies reducing carbon emissions, investing in clean energy, and – critically – communicating about their efforts. Let’s lift up a strong and united business voice so that government leaders take confidence from the private sector to craft climate plans that will deliver us all to a more stable future and thriving economies.
Our prosperity tomorrow depends on responsible actions today.