Why ESG Still Matters in 2025 — Even If No One Wants to Say It Out Loud
By Ritika Kumbharkar, August 7 , 2025
ESG isn’t dead, it’s just gone quiet. Companies may be ditching the label, but they’re still tackling climate risks, fair labor, and transparency because it’s smart business. Behind the scenes, ESG is growing up.
It’s 2025. ESG has gone from being the corporate buzzword of the decade to a lightning rod for controversy. Critics say it's vague. Politicians say it’s political. And some companies? They’re quietly dropping the term altogether.
But here’s the thing: while the acronym may be fading from headlines, the actions behind ESG are more essential than ever.
Let’s be clear, climate risk isn’t going away. Labor rights still matter. Transparency in leadership and supply chains is non-negotiable. ESG still matters. It's just evolving.
We’re Living the Consequences ESG Was Meant to Address
From record-breaking heatwaves to global supply chain disruptions, we’re now experiencing, in real-time, the very issues ESG frameworks were designed to anticipate and address.
Wildfires and floods are affecting real estate, insurance, and agriculture.
Insurers have stopped issuing new home insurance policies in California due to escalating wildfire risks. Home values are dropping, and buyers are walking away.
The floods and extreme weather in the Midwest and Canada are destroying crops, threatening food security, and disrupting global supply chains.
Worker shortages and strikes are making the social side of ESG, like fair labor and equity, more relevant than ever.
Unions strikes have spotlighted demands for fair wages, job security, and equitable treatment as the auto industry transitions to EVs - all core to the “S” in the ESG.
Labor gaps in healthcare, construction, and agriculture are pushing companies to reconsider workforce well-being, diversity, and long-term retention.
Corporate scandals continue to erode public trust when governance is weak.
Within the aviation industry, the ongoing safety and compliance failures are emblematic of governance breakdowns from whistleblower allegations to board-level accountability gaps.
In banking, within the asset management vertical, a well-known bank was fined $25 million for greenwashing, underscoring the need for transparent ESG disclosures and strong board oversight.
So even as the term “ESG” comes under fire, companies are still quietly investing in climate risk planning, supplier audits, DEI initiatives, cybersecurity upgrades, and more. These aren’t “woke” add-ons; they’re business survival strategies.
The ESG Rebrand: What’s Really Happening
It’s not about walking away from ESG. It’s about refocusing. Companies are shifting from checkbox ESG to material, measurable, and meaningful efforts. The new approach focuses on:
Grounding in Materiality
Not every ESG issue matters equally to every business. That’s why materiality assessment tools that identify what’s important to a company’s industry, operations, and stakeholders are taking center stage. It’s not about doing everything; it’s about doing the right things well.
Making It Transparent
Stakeholders, from customers to regulators to Gen Z employees, don’t want ESG alphabet soup. They want clarity. Clear metrics. Honest progress. No more vague promises. That’s pushing companies to ditch jargon and publish disclosures that actually make sense to real people, not just investors.
Keeping It Actionable
The focus is shifting from saying to doing. It’s not just about reports, it’s about decisions:
Choosing sustainable suppliers.
Link compensation to progress on sustainability or climate-related goals.
Building inclusive workplaces that retain talent.
This is what real ESG looks like in 2025.
So Why the Backlash, Then?
Let’s be honest, some of the backlash is rooted in confusion, misinformation, and resistance to change. ESG got caught in the culture wars. Critics turned it into a symbol, not a strategy. But behind closed doors, most companies aren’t abandoning ESG; they’re just dropping the label to avoid the noise. It’s a marketing pivot, not a mission pivot.
What This Means for You
Whether you’re a professional, job-seeker, student, or consumer, here’s why this matters:
ESG isn’t dead, it’s just being rebranded and refined.
Companies will still need people who understand climate risk, supply chain ethics, and stakeholder governance.
As transparency grows, so does your ability to hold brands and employers accountable.
In short: don’t be distracted by the headlines. ESG isn’t about politics. It’s about building businesses and a future that is resilient, responsible, and ready for what’s next.
Let’s Keep the Conversation Going
Do you think ESG has lost meaning, or is it just beginning to grow up? Check out our ESG Action Page for more tools, tips, and steps you can take today.
Change The Chamber is a nonpartisan coalition of young adults, 100+ student groups across the country, environmental justice and frontline community groups, and other allied organizations.