Seeing I to I?

A new survey of voters nationwide reveals how Diversity, Equity and Inclusion (DEI) and Environmental, Social and Governance (ESG) have become political flashpoints – with marked differences in how voters look at the two issues.

We see a marked partisan divide on DEI, with two-thirds (67%) of Democrats favorable toward the concept, starkly contrasting with only a quarter (24%) of Republicans. Four in ten (41%) Republicans view DEI negatively.

Age plays a role too, with younger voters (18-34 years old) being most favorable. Opposition is at its highest among those over 55.

Sentiments toward ESG fall along similar lines. Support among Democrats stands at 57%, more than double that among Republicans (22%). Four in ten (43%) Republicans feel negatively toward ESG.

ESG support is highest among the youngest adults at 48%, decreasing progressively with age to 34% among those 55 and older.

These findings underscore the political sensitivities around communicating on ESG and DEI, but also point to the prospect of long-term generational change.

​A year after China emerges from its draconian, economy-crippling three-year long Zero Covid Policy, multinational companies in China are beginning to become somewhat optimistic about the Chinese market despite increasing geopolitical tensions between the U.S. and China. 

FGS has compiled major surveys conducted by the business chambers in China and summarized the results.  Key takeaways about the U.S. market include:

• More optimism about the China outlook across all areas. 

  • U.S. companies are most optimistic about Chinese domestic market growth (44%) and profitability potential (40%).

  • 49% of U.S. companies in China are expected to be profitable in 2023.

  • China is a top-three investment destination for 50% of US companies surveyed.

• Optimism about an improving regulatory environment and playing field.

  • 31% of U.S. companies believe foreign businesses are more welcome in China over the last year, up 13% from the previous survey.

  • U.S. companies are optimistic about an improving regulatory environment (28% vs. 19% in 2023).

• Multinationals are ramping up local innovation and risk management

  • 20% of American companies are localizing more production/services/IP in China to access local sales opportunities.

• But amid the optimism, long-term issues still affect multinational corporationsin China.

  • Among U.S. companies, 42% consider bilateral tensions and other geopolitical concerns as the top challenges in recruiting and retaining expatriate talent.

  • One-third of U.S. companies report being treated less favorably by the Chinese authorities than their local competitors.

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Our colleagues on the Food and Ag team report the U.S. Securities and Exchange Commission (SEC) has issued its final rule on climate-related disclosure. It requires publicly traded companies to report their direct and indirect greenhouse gas (GHG) emissions as well as their investments in the energy transition. 

The Washington Post reports that while climate advocates praised the final rule as an important step forward, the final rule is weaker than the draft previously circulated and drops a requirement for U.S. companies to disclose Scope 3 emissions, which represent GHG emissions within a company’s entire supply chain.The rule, which was published as "The Enhancement and Standardization of Climate-Related Disclosures for Investors," was approved with a 3-2 vote, with three Democratic commissioners in favor and two Republicans opposed. 

Within the food and agriculture sector, Farm Progress highlights agriculture groups’ positive reaction to the final rule, particularly the removal of the Scope 3 requirements. 

In the U.S., several conservative-led states have already responded, and West Virginia Attorney General Patrick Morrisey announced that he will lead 10 Republican-led states in challenging the mandate in federal court. 

Meanwhile, California is pursuing its own disclosure laws – which other progressive states are expected to replicate – aligning with the wider global shift toward climate transparency, per TIME. 

Around the world, the European Union, United Kingdom, Singapore, China and other countries are also developing similar climate disclosure rules which are poised to be more expansive than the SEC's.