Sustainability Messaging Must Evolve or Risk Losing Investors
As Climate Week NYC quickly approaches, many of today’s leaders are executing growth plans for companies that require investment and funding. Over the last few months alone, the business environment has shifted, prompting leaders to think and communicate differently when it comes to sustainability.
If you’re in or entering a raise, the No. 1 priority for investors is to have a clear understanding of a company’s revenue drivers — what is their go-to-market strategy, and how quickly will they see return on investment?
It’s crucial for a company’s sustainability messaging to be strategically integrated as a holistic part of its growth strategy. This means that sustainability initiatives should not be viewed as isolated philanthropic endeavors, but rather as critical components that directly contribute to long-term financial goals and competitive advantage.
The evolution of sustainability messaging
Sustainability communications has undergone dramatic changes over the past decade, reflecting broader shifts in investor expectations and market dynamics.
Ten years ago, the sustainability movement was in its infancy, following the rise and fall of cleantech 1.0 from a corporate communications perspective. The Paris Agreement was adopted, and companies began making big environmental promises. Everyone jumped on the sustainability bandwagon, which led to widespread greenwashing, overpromising and diluted messaging. Companies treated sustainability as a checkbox exercise, often making claims without the infrastructure or commitment to back them up. This period was marked by generic environmental statements that felt disconnected from actual business operations.
As consumers and investors began to demand transparency, we saw a significant shift as companies better connected the dots between their mission, vision and sustainability goals. Leaders and executives learned that their promises had to correlate directly to their business model and core operations.
Today, we’re witnessing the pendulum shift again. While consumer demand for corporate environmental action hasn’t waned — 7 in 10 Americans say large businesses are doing too little to help reduce the impacts of climate change — investors aren’t as interested in standalone climate and sustainability goals. They want to know how those initiatives fit into the overall long-term value proposition of the company. This reflects a maturing of the sustainability conversation, moving from idealistic goals to practical business integration.
Tailoring your message to your audience
The changing investor sentiment is reflected in corporate communications patterns. According to Bloomberg, mentions of “sustainability” on earnings calls have drastically decreased in recent quarters, signaling a strategic shift in how companies adjust messaging to align with overall sentiment. While core messages remain consistent, the end benefits and value propositions are adapted to resonate with specific stakeholder groups. The fundamental principle remains the same — and is one that communications professionals embrace daily: know your audience and speak their language.
To be successful in today’s market, messaging must be laser-focused on how environmental initiatives drive business outcomes and revenue, versus the historical focus on social awareness and doing good for good’s sake. This doesn’t mean abandoning environmental values, but reframing them within a business context that investors can understand and value. Companies must navigate a complex balancing act between political and regulatory environments by keeping sustainability communications focused on core values and measurable business impact.
Richard Davis, co-founder and CEO of 51 to Carbon Zero, captures this shift perfectly: “Investors want to see that sustainability is driving real-world benefits: improved efficiency, reduced costs and enhanced brand reputation. What resonates most is when sustainability is framed not just as a compliance or ESG exercise, but as a strategic lever for innovation, operational excellence and growth. Clear messaging around tangible business impact — combined with credible, measurable progress — is what investors want to hear today.”
The path forward
Even with market uncertainty and shifting investor priorities, there is opportunity ahead. Regardless of the industry, to succeed in today’s market, companies must identify their core business goals and create communications programs that contribute to achieving them. Messaging must align with and actively support the company’s mission and vision while demonstrating clear value to investors. The future belongs to companies that can prove sustainability isn’t just the right thing to do — it’s smart business.
