The U.S. Securities and Exchange Commission (SEC) voted today to adopt a long-awaited rule mandating that public companies listed in the U.S. disclose financial risks related to climate change.

The decision came two years later than expected – a period that has seen investor and corporate support for ESG grow and more recently ease amid a political backlash that labeled efforts “woke capitalism.”

The new regulation, effective on May 5, will become a requirement for publicly traded companies.

The SEC rolled back what was perceived as the most onerous part of the rule it proposed: the requirement that companies disclose Scope 3 emissions – those produced by their suppliers and customers.

The new rule requires measurement and disclosure of carbon emissions, as well as reporting about factors like extreme weather events and the clean energy transition that are increasingly impacting public companies’ bottom lines – information the SEC wants investors to have to make investment decisions.

Specifically, the final rule requires companies to disclose:

· Scope 1 and/or Scope 2 greenhouse gas emissions

· Material climate-related risks and activities to mitigate or adapt to such risks

· Information about the company’s board of directors’ oversight of climate-related risks

· Information about management’s role in managing material climate-related risks

· Information on any climate-related targets or goals that are material to the registrant’s business

· Disclosure of the financial statement effects (costs and losses) of severe weather events

Since the SEC proposed the rule in March 2022, it received more than 24,000 public comments – the most in the Commission’s 95-year history.

A lawsuit challenging the rule was filed by 10 states just hours after the vote. Industry groups have threatened to sue to stop the rule from taking effect. The rule will also face challenges from congressional Republicans; it would be unlikely to survive if former President Trump prevails in his bid to return to the White House.

FleishmanHillard’s Public Affairs and global ESG specialists are here to help clients navigate the fractured regulatory landscape and stakeholder expectations in a way that allows them to manage risk and reputation.

Every January the largest retailers and most innovative retail tech providers descend on the Javits Center in New York for NRF: Retail’s Big Show. This year was no exception, with hundreds making their stand on the expo floor to share what’s next for retail in 2024 and beyond.

About a month post-event, here are my thoughts on what will show up for retailers throughout the year and what is likely to stay on the show floor for future implementation.

AI is the big guy at the Big Show

Like almost all recent events across the Tech sector, AI stole the show at NRF this year. In fact, according to Salesforce data, only 3% of commerce organizations currently have no AI plans. And consumers are open to the implementation of AI to improve their buying journey.

Apart from the AI use cases that have been commonplace amongst large brands, like personalized customer service and product recommendations, generative AI has widened the horizons for what the technology can do for retailers.

It can enable retail marketing teams to build and manage attention grabbing campaigns, draft effective product descriptions for an ecommerce site, manage loss prevention and even optimize physical store layouts based on traffic. And as brands realize the cost and time savings AI implementation brings to their business, innovation in the space will only continue to grow.

Customer experience and employee experience are top of mind

Another key theme at NRF, and in the retail industry for years, is how businesses can improve the customer experience. In what seems like a lightbulb moment, retailers are now starting to realize that improving customer experience and improving employee experience go hand in hand.

Accelerated by the pandemic, the role of the store associate has changed drastically. Positions that previously only involved working the register have transformed to fulfillment experts for buy-online-pickup-in-store offerings, content creators and live streamers for social media engagement and more. Removing friction and providing employees with the tools they need to succeed is a necessity.

Retail decision makers know that reliable technology has the power to enable employees to excel at their jobs. From training to product search to transaction history and, of course, completing transactions, giving store associates access to easy-to-use technology in the workplace will not only improve their experience, but that of the customer as well.

Supply chain

Supply chain management has been the white whale for retailers for years and optimizing the journey from beginning to end was a headline theme at NRF this year, including a special one-day Supply Chain 360 Summit.

Automation and robotics technologies were prevalent among brands that help to connect end-to-end supply chain operations, enhancing efficiency and meeting customer expectations with transparency into the entire journey. The eruption of retail returns has also pushed brands to streamline the returns segment of the supply chain, to improve customer experience of course, but also to ensure inventory is back on the shelf quickly and efficiently.

The retail tech landscape will only continue to innovate across AI, employee and customer experience, supply chain and more. And no one business is going to take the cake across every area of advancement. While more emerging technologies like augmented reality “fitting rooms” keep retail tech momentum going, decision makers will continue to focus on what will make the biggest impact on their businesses now — and ultimately whatever will serve their bottom line.

As retailers look to the future and prioritize operational efficiency without compromising consumer satisfaction, our ears will continue to be on the ground looking for the next big thing in commerce.

As communications professionals, we are universally obsessed with global news consumption and the big trends driving it. Sure, we often follow them at the behest of our clients — to identify opportunities to react intelligently to breaking stories or white space where they can enter a new or different conversation and even pinpoint reporters and outlets with the most influence on a topic that matters to them.

But we are also inherently curious. We want to know what reporters are covering and why because we want to know how we can be a part of the most important conversations of the day. And to that, it seems that every day there is a new topic driving the agenda — and captivating audiences around the world across myriad platforms and outlets. This is abundantly true when it comes to the dynamic world of technology.

But what of these trends and topics actually has staying power? In partnership with TRUE Global Intelligence (FleishmanHillard’s global research, analytics and measurement practice), our tech team decided to take a quick historic look at big trends in tech innovation and the new consumption around them. 

This stunning image shows search traffic around the term “AI,” which continues to go up, up, up 14 months after the launch of ChatGPT (which gave consumers their first taste of the power of artificial intelligence they could harness directly). 

We see the stratospheric rise of AI best when it is compared to two other terms that felt like they were on everyone’s tongue in the tech world for a hot minute: NFTs and the Metaverse. But looking at the numbers, those trends had a brief burst of attention before being quickly pulled down by gravity.

And while it’s tempting to throw shade at the uncomfortable oddness of NFTs or the lofty promises of anything called a “metaverse”, we think the actual story is simply the fact that as soon as people could start ordering around AI chatbots, they saw the future unfold one answer at a time. AI felt real immediately….and consumers and businesses alike were instantly smitten by the promise of what’s on the horizon. Their interest, as evidenced by this image, rocketed upwards quickly and consistently. And the interest continues to grow.

Beyond the lessons this graphic holds around the rise of AI, it serves as a reminder to us that a sure-fire way to get people talking about a new product or service is to get it in the hands of actual people and let them do things with it that are actually cool.

We are living in a period of unprecedented and incredibly fast change. The adoption of new technologies has never been more dramatic. Of course, the global pandemic did its part to speed digital transformation across geographic, political, economic and social divides. It altered industries from retail to logistics to manufacturing and even entertainment. As a result, technology innovation had an amazing moment that led to this incredible AI story arc.

We can only wonder what will come next…

(Rita Herbstman of our TRUE Global Intelligence practice contributed to this article, as well as designers Sara Cooper and Josh Kirk.)

The last time I attended Mobile World Congress, it was before the iPhone had been launched in Europe. The world of telecoms – and PR – was very different. Pretty much every publication in the region sent a host of tech reporters, and the job of the PR was hosting 30+ briefings on stands where booth babes were still a standard accessory. 

Fast forward to 2024, and comms at MWC is a very different story. Analysts’ attendance looks set to outweigh journalists by a ratio of 2:1; many national journalists who attended last year aren’t planning to return this year, and one of the world’s largest news agencies doesn’t intend to send any reporters for the first time, as editorially they cannot justify the cost.  

For the tech trade journalists who are on the ground, many of them have been sponsored to attend by one vendor, which pretty much monopolises their whole diary. With this limited pool of journalists, alongside an increasing list of exhibitors all vying for attention, it puts comms professionals in somewhat of a quandary.  

How communicators can make the most out of MWC 

Consider timings on news: There are two schools of thought on issuing news at mega conferences like MWC – the pro argument dictates that having a strong product/personnel/business announcement is key to demonstrating relevancy among industry peers and to driving inclusion in coverage from on-site journalists. The flip argument, which I increasingly support, is that unless you have something at the level of a revolutionary new handset, the news gets lost. You’ll get a much bigger ROI going out before or after the event.  
 

Briefing objectives: With a limited number of journalists on site, the key is to be very strategic about which ones to approach and what you offer. With horrifically packed schedules, the offer needs to be solid. A spokesperson needs to give them something that makes the time investment worthwhile – in almost every scenario, a punchy viewpoint is much more interesting than a monologue on a company widget getting its umpteenth upgrade… 
 

Beyond earned: Virtual networking is just as important; so much of what happens at MWC will be seen through a digital lens of LinkedIn updates and connecting via the MWC app. It is imperative that senior stakeholders are supported with guidance on content that is maximised for industry engagement and shareability. 
 

Be in the know: There’s a host of wider MWC comms opportunities if you take the time to get in the know, before the show. Opportunities range from annual traditions like Swedish Beers, to executive dinners being run in conjunction with top tier publications (no PRs allowed!), vendor press networking events and drinks receptions with the likes of the Department for Business and Trade. Spending time to understand and prioritise activities can open a range of future opportunities.  

In this new era of comms, I am excited to get back to Barcelona to see first-hand just how much MWC has changed in 15 years. Crucially, as we all embrace the shift to working with colleagues and clients ‘IRL’ I am looking forward to having some facetime and networking with some old (and new) faces – if you are also making the trip it would be great to hear from you so we can swap stories on MWC past and present, and the impact of comms technologies and strategies changing tack! 

The world is bracing for a 2024 that brings the unpredictability of unprecedented global elections, disruptive AI technology and an onslaught of environmental, social and governance disclosure rules. All of this will shape how companies operate sustainably and responsibly now and in the years to come. Below are some of the top trends that communicators will need to navigate in 2024. 

Climate disclosure requirements will become a reality, and companies must be prepared. 

New disclosure rules have serious implications for corporate reputation, company culture and operations, and legal and financial matters. The throng of disclosure requirements hitting thousands of companies will significantly change the approach to communications for many of the world’s largest brands. Companies operating in California, whether headquartered there or not, will be impacted by three climate reporting bills, requiring certain organizations to back up their public sustainability claims with third-party verified data. For many companies subject to the EU’s Corporate Sustainability Reporting Directive (CSRD), FY24 starts the clock ticking as the basis for comprehensive disclosures that go well beyond climate and will need to be included in their 2025 reporting.  

Compliance is a massive undertaking and will demand new models of internal communications, culture change and collaboration just to navigate the process, along with skilled communication professionals who must plan now for the impending era of unparalleled transparency. Learn more in FleishmanHillard’s brief on EU and U.S. Sustainability Disclosure Requirements. 

Climate action commitments and challenges loom large as countries look to COP29. 

COP28 marked progress in addressing the climate crisis, including creation of a loss and damage fund and first-ever reference to transitioning away from fossil fuel, but reinforced the formidable challenges to reaching a lower and then zero-carbon future. We also saw an elevated focus on biodiversity and health equity as climate change increasingly impacts public health. The implications of COP28 will be significant for companies addressing disparate legal and regulatory frameworks, managing political expectations and communicating with stakeholders and the public about climate action.  

Expectations for COP29 in Azerbaijan will be equally high, and eyes will be on the need to increase public and private sector financial commitments. Companies should prepare to communicate tangible and forward-looking climate action and manage questions or challenges related to the direction and pace of change.  

2024 elections will profoundly influence future action on sustainability and social responsibility. 

Elections are scheduled in 70 countries in 2024, which means voters will make their voice heard on major issues like climate, human rights, societal inclusion and more. Companies operating in the U.S. will need to navigate the politicization of ESG, as a term and construct, even as other countries push ahead, and public interest remains strong. National climate agendas and efforts to advance diversity, equity and inclusion have already undergone significant changes in the past year, but the elections could profoundly influence future action on these issues. Communications teams need to work cross-functionally to provide expert counsel to companies navigating political headwinds, decide when and how to engage with the media and stakeholders, and to maintain a clear and authentic message as the landscape shifts. 

Companies will increasingly leverage AI as a core solution to advance their ESG objectives. Regulators will try to keep up. 

More companies will make AI a core solution to accelerate and track their progress toward their decarbonization objectives. Bringing the worlds of technology and climate change together is not a new phenomenon. Yet the speed at which AI is catalyzing technological innovation and driving change is focusing minds on how to effectively leverage AI in an accountable and transparent way. While some of the largest cloud providers claim carbon-neutral operations, there are scores of data centers and providers that can’t. Looking ahead, we’re sure to see more headlines decrying the environmental impacts of resource-intensive AI. FleishmanHillard’s global advisory approach can help companies navigate emerging policy discussions and different stakeholder expectations as the business, regulatory and international environments explore and implement AI solutions. 

This year, businesses, governments and consumers are entering uncharted territory. What companies need now, more than ever, is a business strategy that unifies all corporate functions globally to not only successfully adhere to new ESG regulations but also communicate authentically and transparently. An approach that is siloed at the country, function and even agency level must evolve to a connected outlook. FleishmanHillard’s unique global advisory approach helps companies anticipate the shifting sands in a coherent and connected way across policy, legal, brand, communications and reputation. Connect with us at [email protected] to learn more. 

Bob Axelrod, Michael Hartt and Jane Gimber contributed to this article.