Thought Leadership

ESG and DEI Tensions in a Shifting Political Climate: A Strategic Guide for Leaders

As we consider the next four years under a new Administration; the intersection of corporate sustainability efforts and political dynamics becomes increasingly complex. For businesses, especially those invested in environmental, social, and governance (ESG) initiatives and diversity, equity, and inclusion (DEI), this period represents both a challenge and an opportunity. Companies are weighing up how to proceed: do they continue to publicly advance their ESG/DEI initiatives (e.g. Apple, Microsoft, Costo  and JP Morgan), do they follow the example of Coca-Cola, Walmart, Meta and McDonalds by rolling back their targets and DEI programs or, just keep it all safely under the radar - potentially risking brand reputation and stakeholder trust in the process.

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The Political Landscape: Implications for ESG Investing

The Trump administration’s attempts to use tools like Federal Antitrust Law to penalise ESG investing signal a contentious environment. Businesses must prepare to defend their ESG initiatives by aligning them with core business imperatives such as competitive advantage, cost reduction, and growth. Demonstrating tangible outcomes will be essential to counteract political and legal scrutiny.

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Risks of Greenhushing

While some organizations may consider minimising public ESG discourse to avoid political blowback, “greenhushing”—staying silent about sustainability efforts—poses its own risks. Silence can attract criticism from activists, damage stakeholder and customer relationships, and ultimately undermine brand equity. Proactive engagement, when supported by measurable results, remains a more resilient approach.

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The Rising Role of Government Relations and Communications

The evolving landscape elevates the importance of roles that bridge sustainability with external communication and government relations. These functions will become vital as companies tailor ESG messaging to align with both internal goals and external pressures. Professionals with expertise in managing stakeholder relationships, regulatory concerns, and public narratives will be in high demand.

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A Framework for Navigating Political Change

Sustainability leaders must adopt adaptive strategies to navigate the trade-offs between economic, environmental, social, and political considerations. Trellis’ “Sustainability Tension Management” (STM) framework provides a pragmatic approach by prioritising impact over terminology or rigid adherence to specific reporting frameworks. The focus shifts to:

• Delivering Impact: Concentrate on results that matter to stakeholders, aligning with business goals.

• Making the Business Case: Use data to demonstrate how ESG initiatives contribute to financial and operational metrics.

• Engaging Stakeholders: Identify and collaborate with allies, from customers to industry groups, to sustain momentum.

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Impact-Driven Leadership: Strategies for Success

1. Measurement and Communication: Build robust systems to measure and communicate ESG metrics. Transparency fosters trust and supports stakeholder engagement.

2. Risk Mitigation and Resilience: Integrate risk management into ESG strategies. By de-risking supply chains, cutting resource dependencies, and addressing human rights issues, companies can enhance resilience while reducing costs.

3. Innovation and Opportunity:Use ESG commitments as a springboard for innovation. Investing in sustainable practices often uncovers efficiencies, reduces long-term risks, and creates competitive advantages.

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From Targets to Tangible Results

Recent high-profile examples, such as The Coca-Cola Company scaling back on plastic recycling targets, highlight the pitfalls of overpromising and under delivering. Organizations must shift focus from aspirational targets to demonstrating real-world outcomes. Accurate, realistic goals, underpinned by clear communication, will help rebuild and maintain credibility.

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Future-Proofing Through Strategic Investments

The rise in climate-related crises underscores the importance of long-term planning. Businesses that invest in resilience—through infrastructure, workforce skills, and operational efficiencies—will be better equipped to navigate disruptions while maintaining stakeholder trust.

Sustainability leaders must take the helm, balancing diverse stakeholder expectations with measurable impact. As businesses navigate this charged political landscape, the path forward lies in transparent communication, strategic collaboration, and unwavering commitment to delivering results. By fostering resilience and demonstrating the tangible value of ESG initiatives, companies can not only survive but thrive in the face of growing challenges.

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Acre remains committed to supporting organizations in aligning their talent strategies with these pressing needs. Connect with me or my colleagues at Acre to learn more about how we can support your organization in matching purpose-driven companies with the exceptional leaders they need to navigate this evolving ESG and DEI landscape. Whether you’re looking to build resilience, drive impact, or future-proof your operations, our expertise in sustainability and executive search can help you thrive. Reach out today to explore how we can partner to build a sustainable and successful future for your business.

 

Consumer MarketsCase Study

Hiring the Vice President of Sustainability for Crocs

The simple-yet-cleverly designed, iconic-yet-informal footwear that many people have been wearing for years has a big emphasis on comfort – it is a USP. 

 

In line with the battle against climate change, the comfort now runs deeper than merely how your feet feel when striding out in a pair of Crocs. The company want consumers to step out confidently in the knowledge that their chosen footwear brand is meeting – and even better exceeding – their environmental and social targets, by elevating its sustainability profile.

 

For this to happen, the company needed a passionate, multi-skilled individual to steer the brand towards a strengthened sustainability strategy.

 

Acre was therefore very privileged to be engaged by Crocs to support the extensive search for VP Sustainability of the brand. 

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Why Acre?

Acre was selected by Crocs due to our expertise in sustainability and track record of recruiting both apparel as well as manufacturing businesses across the USA.  

Our 18 years of experience in sustainability recruitment means we have already cultivated an expansive global network of exceptional sustainability leaders; a network of purpose-driven professionals.

 

Determined to create a positive, sustainable legacy for Acre, for our society, and our planet by supporting businesses who are ambitious to create change, it was a natural fit to work with Crocs on this search.

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​The Role & Remit Required

The globally recognised brand specifically required a highly driven individual with the expertise and confidence to develop and execute the company’s sustainability strategy to steer towards the goal of becoming net-zero carbon by 2030, across the business and supply chain. 

 

The level of bold ambition this VP Sustainability role would encompass to drive impact and change across the business became evident after initial briefings with senior leaders - including Crocs’ CEO, Andrew Rees.

 

It was understood that the successful candidate would report to Andrew in the near future, with a mandate to work closely with - and influence - senior executives across all key business functions. A key requirement when conducting the search was to be able to provide a diverse shortlist of well-qualified and experienced sustainability leaders, where inclusivity and belonging would be vital to success.

 

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​Why are Crocs Uniquely Positioned to Drive Change in the Fashion Sector?

Crocs have raised the sustainability bar to operate in a way that benefits its customers, the community and the people who work for the company, regardless of their job title because the cornerstone of success is engagement (with internal and external stakeholders), understanding how people feel and what they need, and ensuring inclusivity for all.

 

Crocs have focused energy on scrutinising climate and packaging efforts (selling shoes without shoe boxes is one way the company is reducing its negative impact), as well as paying attention to chemical, biodiversity, and social issues.

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​What Sustainability Strategy Would the VP Sustainability be Working on? 

By the end of 2021, Crocs announced they would become 100 per cent vegan by focusing on sustainable ingredients for the footwear. Crocs is using a new bio-based version of its Croslite™ material for a lower-emissions shoe (45 per cent of which is recycled).

 

The bio-based material update is created in partnership with Dow, a global materials science company, and Crocs is the first footwear brand to use new ECOLIBRIUM™ technology to reduce its carbon footprint. The technology turns waste, by-products and renewable bio-based feedstocks into the familiar shoe which may provide future recycling opportunities.

 

The results are the same for consumers, they will see a casual shoe that encompasses all the familiarity of the original Crocs, for the same price as before, but with a lower environmental impact. 

 

Crocs also ensure it gives back to the community through its internal giving program ‘Crocs Cares’ and currently donates shoes as part of its sustainability commitment thus avoiding waste and supporting those in need. It has donated shoes to healthcare workers who have put their lives on the line during the pandemic and has recently announced it will donate 30,000 pairs of Crocs to students and staff within the Boulder Valley School District in the wake of the Marshall wildfire earlier this year.

 

The company also relishes the unique attributes of every individual and invites everyone to ‘Come As You Are’, to promote its inclusive culture. 

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​How does Acre Support a Company like Crocs to fill such a Prominent Position?

At Acre, we recognise that our obligations stem far beyond merely placing people in jobs. We work with the most aspirational clients, like Crocs, who are making an incredible environmental impact, to those who are just starting out on the journey to crafting a legacy.

 

Catherine Harris, Director Sustainable Business – North America, conducted a retained search for this highly sought-after opportunity which captured the imagination of some of the most talented and accomplished leaders in the business.

 

Alongside the search, Acre offered Crocs the opportunity to publicise their important work, and our in-house design team created a bespoke marketing campaign to let the market know about this incredible opportunity. Crocs instilled their trust in Acre to narrate their vision, mission, and ethos, while demonstrating the importance of this hire for the organisation. 

 

 

The Successful Candidate

The successful candidate for this role – Deanna Bratter – came from Danone North America, where she was VP of Sustainable Development. During her time at Danone, Deanna led their strategy to address climate change issues – not to mention the restoration of natural ecosystems, advancing responsible sourcing, supporting people & communities, and improving sustainable packaging.

 

"Climate change is an urgent issue that requires meaningful and rapid action. As a brand that invites everyone to be comfortable in their own shoes, we have an equal responsibility to ensure we're doing our part to create a more comfortable world. We are excited to welcome Deanna into this key leadership position and are confident that her deep experience and expertise will help Crocs achieve its ambitious sustainability goals. We are delighted for Deanna and for Crocs and are excited to watch the business’s sustainability agenda flourish under her expert leadership.”- said Andrew Rees, CEO, Crocs.

 

“Deanna was quick to impress the senior leadership at Crocs with her impressive record of accomplishment, ambition, clarity of vision, exceptional engagement, and communication skills. Deanna has a heart for people and the planet – and this shone through, throughout the interview process.” said Catherine Harris, Director Sustainable Business – North America, Acre

 

To learn more about how a partnership like this could transform your team, please don’t hesitate to get in touch via usa@acre.com or by calling +1 929 376 3166

News

The list of planet-saving actions revealed at Climate Week NYC

An ambitious global action plan, launched at Climate Week NYC, proves some ‘to-do lists’ are more critical than others.

 

The largest annual climate event of its kind – second only to COP – sees a mass gathering this week of governments, businesses, climate leaders, action takers, civil society and innovators to uncover the latest drivers in climate action and spark discussions for future achievements.

 

The Global To-Do List to implement climate action, was launched via video at the opening ceremony in New York, and included insights from Professor Tim Lenton from the University of Exeter and Eugenia Kargbo, Chief Heat Officer & Senior Heat Strategist Africa, Freetown City Council.

 

Tim Lenton said: “Our response to climate change is sluggish, and we need to go a lot faster. That's why a 12-month timeline for climate action is so important: it accelerates change and brings us closer to positive tipping points that propel unstoppable emissions reductions. We have to embrace change because it's become a matter of life or death. Every year of delay is a year of counting more body bags.”

 

Eugenia Kargbo said: “The impact of climate change is very extreme. Temperatures are rising at an exponential rate, and so are humidity levels. We see flooding happening, people are dying. It’s time to stop talking and start taking action at a scale that matches the urgency of the climate crisis.”

 

Climate Week NYC is run by The Climate Group, the international non-profit organisation, in partnership with the United Nations and the City of New York.

 

The theme for this year’s Climate Week NYC is It’s Time, which underscores the urgency for robust measures to start reducing emissions almost immediately and address the emissions gap between the scientific requirements to combat climate change and the actual delivery from governments and businesses.

 

The US, with its most ambitious administration on climate in history, only reduced emissions by 1.9 per cent in 2023.

 

Two years ago the IPCC calculated that greenhouse gas emissions (GHGs) would need to drop by 43 per cent by 2030 to stay on course, but global emissions remain high despite the increase in renewables and sales of electric vehicles.

 

Helen Clarkson OBE, CEO at Climate Group, said: “It’s time for a reality check. We can’t keep making ambitious commitments but then only half implementing them. We can’t afford to waste another year. One year, seven actions - this is our call to arms.

 

“Climate discussions often focus on targets we need to reach by 2030, or even 2050. These are important milestones, but when it comes to the results we need right now, we’re still collectively failing. Governments and business could start taking these steps, this month, right now.”

 

 

The Global To-Do List calls for seven climate actions across key sectors and systems. They are:

 

1. Support workers to power down coal - Bolder policies are needed to enable a faster plan to replace more coal by 2030

 

2. Unleash renewables - The Climate Group is urging for governments to break down barriers this year, to reach goal of tripling global renewable energy capacity by 2030

 

3. Ban relining of coal-based steel furnaces - Electric furnaces and production of green hydrogen should be the norm from now on

 

4. Get serious on methane - The Climate Group is calling for governments to build a more powerful and authoritative global agency to audit fossil fuel companies’ declarations and delivery and tackle the biggest leaks

 

5. Stop ignoring energy efficiency - Every business should set a target to become 5 per cent more efficient in 12 months’ time and governments need to be bolder. The G20 should agree a minimum investment incentive, following the lead of the US

 

6. Buy clean - Every government and large business should be buying healthy, lower carbon food, setting targets for lower carbon steel and concrete, and buying 100 per cent renewables and EVs

 

7. Tax oil and gas companies to fund the transition - The G20 should agree a minimum new import tax on oil and gas

 

Climate Week NYC provides a platform for around 900 bigger and smaller events across the City of New York, led by organisations that want to push the needle on climate