Of all the ways that a company like Disney can be flagged as going “woke,” one of the most definable is when that company focuses on Environmental, Social, and Governance Matters. Called ESG for short, this moral-focused business direction has been a topic of debate throughout 2022, with many corporations voluntarily taking up the new standards focused on diversity, human capital, climate change, carbon offsets, and other sustainability goals, and even some domestic and international laws and regulations being adopted or considered.
However, The Walt Disney Company appears to have had a moment of honesty regarding the extraordinary standards. Within its 2022 Financial Annual Report, among what its leaders have identified as “Business, Economic, Market and Operating Condition Risks,” Disney states, “Environmental, social and governance matters and any related reporting obligations may impact our businesses.”
“U.S. and international regulators, investors and other stakeholders are increasingly focused on environmental, social, and governance (ESG) matters,” Disney explained. “Our response will require additional investments and implementation of new practices and reporting processes, all entailing additional compliance risk.”
Disney admits that adherence to these new standards “may include specific, target-driven disclosure requirements or obligations,” as well as reiterate the fact that it has “announced a number of ESG initiatives and goals, which will require ongoing investment,” and includes matters of environmental sustainability, at the Disney Parks, the Disney Conservation Fund, as well as regarding standards for strategic planning and new business development. Disney’s ESG goals can be viewed in the “Corporate Social Responsibility” section of its website.
But the Company also appears to admit that successfully adopting ESG is not a guarantee.
“There is no assurance that we will achieve any of these goals or that our initiatives will achieve their intended outcomes,” says Disney, admitting that their ability to meet these goals could depend on “external factors” such as dependence on third-party collaboration, necessary innovations, and “the availability of economically feasible solutions at scale.”
Disney also appears to recognize the growing distaste among certain members of its audience–investor or otherwise–who see companies adopting ESG practices as departing from or even compromising traditional meritocratic standards for unprofitable “socially responsible” ones. This sentiment is usually summed up by the crude expression, “Go Woke Go Broke.”
“Consumers’ perception of our efforts to achieve these goals often differ widely and present risks to our reputation and brand,” Disney states.
Related: Shareholders Demand Disney End Donations to Politicians Who “Misalign” With Company’s Values
Since retaking the reigns from CEO Bob Chapek, Bob Iger has made it clear that Disney’s Brand integrity is crucial to the Company’s success. His restructuring has already begun to ensure a quality-over-quantity approach to new projects as well as restore a sense of accountability to the creative teams.
It should be mentioned at this time, however, that much of what is said regarding Disney’s ESG practices comes down to “forward-looking statements,” which “generally relate to future events or our future financial or operating performance,” including financial results and future liabilities.
Related: Disney Acknowledges “Labor Disputes” In Message to Shareholders
“These statements reflect our current views with respect to future events and are based on assumptions as of the date of this report,” Disney clarifies. “A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances. You should not place undue reliance on forward-looking statements.”
Only time will tell just how successful Disney’s ESG goals are in 2023.
