When is “woke” wise? When it’s fiduciary risk management

Climate Voices

When is “woke” wise? When it’s fiduciary risk management

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It’s time to reframe communication around sustainability

For several years, we’ve lulled ourselves into believing that sustainability has gone mainstream. Yet, how we communicate about it remains stuck in the past — too often seen by many as a standalone initiative rather than an integral part of a company’s business strategy. This misalignment with business strategy and goals leads to accusations of being “woke” or politically motivated, sidelining it as irrelevant to shareholder value.

The irony is striking: mitigating climate risks, fortifying supply chains, preserving nature, and leveraging diverse talent to drive innovation are not only central to long-term business success but fundamental to delivering shareholder value. At its core, for example, if left unaddressed, climate risk is a financial risk — posing direct challenges to supply chain stability, operational costs, and market resilience. Sustainability was intended to break down silos, not to be perceived by those outside the field as confined to one. Yet how we’ve communicated it has too often isolated it from core business strategy, leaving it vulnerable to misinterpretation and criticism. The time has come to evolve — not with the work itself but how we articulate it.

Sustainability was intended to break down silos, not to be perceived by those outside the field as confined to one.

New approach

As companies brace for heightened scrutiny amid a renewed wave of political pushback, it’s time to reframe the conversation and craft a new narrative — dropping the term “sustainability” altogether in favor of fiduciary responsibility.

By reframing our work in this new lexicon, we turn the tables on our critics, showing that addressing climate risks, workforce diversity, and supply chain resiliency are not ideological stances but strategic business imperatives — common-sense actions people on “Main Street” would expect a responsible business to take to ensure long-term success.

If it sounds like an old narrative, it is — with a twist: The new narrative must explicitly link social and environmental action to the business’s fiduciary responsibilities, driving growth, competitiveness, and profit. The goal of the new narrative is clear: to make sustainability synonymous with fiduciary responsibility, ultimately making the term sustainability redundant.

Uniting the narrative: Translating sustainability into fiduciary responsibility

Instead of relying on language reinforcing its separateness, we should adopt words and phrases backed by data that explicitly tie social and environmental action to shareholder value. For example, Microsoft has publicly emphasized how its carbon-negative goal and investments in renewable energy not only reduce environmental impact but also enhance operational efficiency, mitigate risks, and drive innovation—ultimately contributing to long-term shareholder value.

Instead of relying on language reinforcing its separateness, we should adopt words and phrases backed by data that explicitly tie social and environmental action to shareholder value.

This means clearly communicating how a company’s approach to mitigating climate risks, ensuring supply chain resilience, and fostering diverse innovation is not just ethical but essential to its financial performance and long-term competitiveness. KPMG’s 2023 report, “The Impact of Climate Risk on Financial Statements,” emphasizes the increasing importance of integrating climate-related risks into financial reporting. The report provides examples of how climate risks can affect financial statements, discusses disclosure requirements related to climate change, and highlights the International Accounting Standards Board’s (IASB) project on reporting climate uncertainties.

By reframing these efforts as core business imperatives, we align them with the fiduciary responsibilities that drive decision-making in boardrooms and C-suites, dismantling outdated perceptions and building a narrative rooted in shared value and measurable impact.

Communicating with metrics

Shifting the narrative requires a deliberate and strategic approach. We must anchor our communication in the metrics and outcomes that resonate most with decision-makers: risk mitigation, cost savings, revenue growth, and innovation.

For instance, instead of discussing broad goals like “reducing carbon emissions” highlight specific outcomes such as protecting supply chain reliability by safeguarding critical resources against climate disruptions or reducing operational costs through energy efficiency initiatives.

Second, connect these outcomes to tangible financial metrics, demonstrating how addressing social and environmental issues directly influences profitability, market share, and shareholder returns. For example, companies that invest in workforce diversity aren’t just checking a box; they’re accessing a broader pool of talent and perspectives that can drive breakthrough R&D and capture emerging market opportunities. 

One standout example of this approach is LVMH’s partnership with Rihanna to create Fenty Beauty. By prioritizing inclusivity and offering a broad range of shades for all skin tones, Fenty Beauty met an underserved market need and set new standards in the beauty industry. This strategy led to significant growth, market share expansion, and long-term brand loyalty, demonstrating how diversity-driven innovation can translate into financial success.

Third, adopt a proactive, evidence-based narrative that anticipates and counters critiques. This means being prepared with data illustrating how long-term planning on climate, supply chain resilience, and workforce engagement reduces volatility and builds resilience against economic and regulatory shocks. Transparency is key. Showing how these efforts align with short-term performance metrics and long-term value creation will make the case irrefutable.

Finally, embed this narrative into every facet of the business, from investor calls and annual reports to marketing campaigns and public statements. The message should be clear and consistent: addressing social and environmental issues is not an optional add-on; it’s a business imperative that fulfills a company’s fiduciary responsibility to its shareholders while ensuring long-term growth and competitiveness in a rapidly changing world.

Fiduciary focus: Diffusing criticism 

By communicating through the lens of fiduciary responsibility, we demonstrate that criticisms of our social and environmental actions as “woke” or politically driven are baseless. Instead, we highlight how they are integral to a company’s ability to thrive in an increasingly interconnected and volatile world. This approach underscores that addressing these issues is essential for maximizing shareholder value and ensuring long-term business success — goals that align with critics who believe that companies should focus solely on creating shareholder value. In doing so, we reinforce the business rationale for these efforts while rendering such attacks irrelevant.

This narrative ensures that what we do is no longer a target for criticism but a shared pathway to enduring success.

Far from advancing a political agenda, addressing issues like climate change, supply chain stability, and workforce diversity is about ensuring that businesses remain competitive and capable of adapting to evolving market realities. When we tie these initiatives to tangible outcomes — such as reducing operational costs, mitigating supply chain risks, and driving innovation — we underscore that they are not ideological pursuits or forced morality but essential business practices.

This alignment neutralizes detractors and strengthens the business case for action, making it clear that these efforts transcend politics. They are not about choosing sides in a culture war. They are about making smart, forward-thinking decisions that position companies to deliver sustained value for shareholders, customers, and communities alike. This narrative ensures that what we do is no longer a target for criticism but a shared pathway to enduring success.

Our field has always been adept at translating complex challenges into actionable strategies, speaking the language of various stakeholders inside and outside the company. Now, we must learn and communicate a new language: the language of fiduciary responsibility. This isn’t about abandoning the principles of sustainability but seamlessly embedding them into the metrics and values that guide business decision-making.

This is how we bring sustainability back to its essence — not as a standalone function or perceived as pushing an agenda, but as a unifying force that drives innovation, enhances shareholder value, and fosters a more resilient future for all.

Written by

Tony Calandro

Tony Calandro has more than 25 years of experience in strategic communications and change management, including 15 years at Fleishman Hillard, and eight years at VOX Global, where he chaired the firm’s sustainability practice group. Tony founded Purposeful strategies in 2016 where he helps clients connect the dots between purpose and profit, showing companies how their efforts in sustainability, social impact, and governance generate a ‘return on responsibility’ by strengthening a company’s license to operate, unlocking new market opportunities, and building long-term business success.