Amid a notable trend where leading firms are moving away from using the term “ESG” in their corporate communications, this study investigates the factors driving this shift. Analyzing earnings call transcripts from 2021 and 2023, the paper examines how political alignment and financial performance influence firms' decisions to remove ESG terminology, with the moderating effects of industry environmental sensitivity and exposure to European markets. The findings reveal that firms with stronger Republican alignment and those experiencing financial declines are more likely to avoid ESG term from their reports. However, this tendency is mitigated in environmentally sensitive industries, where sector-specific pressures compel firms to maintain ESG communication regardless of political or financial factors. The study highlights the complex interplay between political ideology, financial imperatives, and industry pressures in shaping corporate sustainability communication strategies, offering insights for managing corporate narratives in a polarized environment.
