From left to right: Michael Robinson, Chairman and CEO of The Montgomery Strategies Group, Jenny MacMichael, Director, and Steven Goldberg, CEO, August August is excited to share our latest ESG newsletter, which this month comes in the form of an August Conversations featuring Director Jenny MacMichael, Co-Founder and CEO Steven Goldberg, and Michael Robinson, Chairman and CEO of Washington D.C.-based The Montgomery Strategies Group. In the conversation, Steven and Michael share their insights on effective communications amidst the continued politicization of ESG, discussing how companies can effectively communicate with their stakeholders about their ESG initiatives to avoid perceptions of “greenwashing” and sharing their predictions for ESG over the next decade. As always, we hope you enjoy and find value in this conversation and welcome your comments and input at Inquiries@AugustCo.com. Watch the full August Conversations episode here: https://youtu.be/QBH9IoCFuSM

In our first ESG newsletter of 2023, we discuss the contradictions of the anti-ESG movement, the risks associated with director “overboarding,” and emerging regulations regarding transparency in ESG reporting. From likely hearings in the Republican-led House to the commencement of proxy and annual meeting season, we anticipate a steady increase in the volume of commentary across the ESG space in the first quarter. As always, we hope you find these overviews and takeaways helpful and welcome your comments and input at Inquiries@AugustCo.com. Anti-ESG Hypocrisy The Risks of “Overboarded” Directors ESG Transparency .

In our last ESG newsletter of the year, we look ahead to 2023 and shed light on ESG themes and battles we expect to play out at the national and state levels through next year and beyond. This debate will be noisy and likely strengthen the resolve of anti- and pro-ESG forces alike, raising the stakes for companies to carefully plan their ESG initiatives and communicate meaningfully with core stakeholders.  We hope you find these short synopses and our takeaways for companies and their communications teams helpful. As always, we welcome your comments and input at Inquiries@AugustCo.com.  You can expect the next installment of our newsletter in the new year. In the meantime, the August team wishes you a happy holiday season. Washington vs. Wall Street The Washington-Wall Street ‘woke’ war has only just begun Politico | December 7, 2022 Commonalities between Pro and Anti-ESG Activists Pro-ESG and anti-ESG activist investors have more in common than you might imagine  Fortune | December 8, 2022 Investing in ESG Amid an Impending Recession Execs aren’t convinced ESG investments deliver profits. The skepticism might undercut sustainability budgets. Business Insider | December 9, 2022 .

Introducing August’s ESG Newsletter For the first time in nearly 40 years, in 2019 the Business Roundtable issued a new statement on the Purpose of a Corporation, rejecting the principle of shareholder primacy in favor of one in which a corporation exists for the benefit of all stakeholders: customers, employees, suppliers, communities, and, last but not least, shareholders. This holistic perspective dovetails with the objectives of ESG – shorthand for Environmental, Social, and Governance – a broadly-defined movement intended to direct investor dollars towards companies that successfully pursue environmental, social, and governance-related initiatives. In recent years, ESG has created a whirlwind of challenges for, and debate among, corporate leaders who seek to balance stakeholders’ increasingly complex and often conflicting preferences. A central question in this debate is whether ESG considerations interfere with a company’s fiduciary duty to its shareholders or are an integral component in fulfilling that objective. Raising the stakes in this debate is the entry of federal and state political leaders with their own agendas. To some on the right side of the aisle, ESG is being framed as a dangerous product of “woke capitalism” that unfairly subtracts from the returns shareholders would otherwise be due and wrongly cedes American business leadership to a group of global elites; and to some on the left, it doesn’t go far enough to hold big companies and the wealthy responsible for negative externalities created by the relentless pursuit of profit. As pro- and anti-ESG pressure builds from investors, politicians, regulators, employees, consumers, and other stakeholders, companies across industries are grappling not only with how to incorporate ESG into their business models, but also with identifying effective measurement and disclosure methodologies. With no standardized reporting criteria and intense focus on ESG initiatives from corporate stakeholders, companies are highly vulnerable to claims that they have failed to align their ESG initiatives with their brands. And if their efforts are perceived as inauthentic, they risk rejection by consumers. It is becoming clear that how corporations communicate about their ESG commitments can be a stronger determinant of corporate value and reputation than the ESG initiative itself. Today, stakeholders increasingly expect corporations to provide open, transparent, and ongoing communications about their ESG initiatives and commitments, just as investors demand “proof” that these same programs produce lasting and tangible value. These concepts and conversations are what gave rise to this newsletter, in which we will spotlight some of the most important ESG-related developments and dissect what they mean for corporate leaders and their communications teams. We hope you enjoy and find value in it, and we welcome your feedback and the opportunity to discuss further. The Impact of the Midterms What The Midterms Mean for ESG Investing E&E News | November 11, 2022 Managing State Level Tensions ESG Regulatory Divide Poses Challenges for Asset Managers  Wall Street Journal | November 28, 2022 The Importance of Action Before Words ESG Commitments Before ESG Communications (Not the Other Way Around)  Forbes | November 9, 2022 The Case for Values in ESG It’s Time for ESG to Fight Back Barron’s | November 11, 2022 Applying the Financial Materiality Assessment Framework to ESG The Benefits of an ESG Materiality Assessment Forbes | November 1, 2022 .

As we head into a holiday weekend that honors and remembers those who died for our country, the team at August is feeling horror, grief, and anger about the spate of recent mass shootings across the country. We also remember and mourn for the innocent lives lost and the countless others affected by these senseless and abhorrent acts. There is an often-quoted (especially following the murders in Uvalde) tweet from 2015 by journalist Dan Hodges that reads: “In retrospect Sandy Hook marked the end of the US gun control debate. Once America decided killing children was bearable, it was over.” Indeed, much of the news coverage and commentary in the wake of Uvalde expressed a tone of resignation that nothing can change the unwillingness of our elected officials to bring about sensible changes to our gun control laws and protect innocent lives.  We cannot succumb to the understandable feelings of helplessness. As Coretta Scott King so eloquently stated, “It doesn’t matter how strong your opinions are. If you don’t use your power for positive change, you are indeed part of the problem.”  Over the last several days, we have been encouraged to see many prominent individuals and organizations speaking forcefully for change. Golden State Warriors head coach, Steve Kerr, whose father was tragically shot to death when Kerr was a teenager, was as forcefully outspoken as anyone about the need for elected officials – specifically Republican Senators – to respond to the will of the people and take legislative action to restrict access to deadly weapons. Gabe Kapler, the manager of the San Francisco Giants expressed similar passion and has decided for now that the will not take the field for the national anthem. And the New York Yankees – arguably the most famous franchise in the history of professional sports – joined with the Tampa Bay Rays to use their respective Twitter feeds to educate the public about gun violence.  In boldly taking a stance, they are using their platforms to drive change. Each one of us can do the same. Even if we, as individuals, can’t reach as many people as Steve Kerr or the New York Yankees, each of us can be part of a groundswell of public opinion demanding, and ultimately achieving, meaningful action. And we must remember that there is an overwhelming majority of Americans who believe that what is right is taking various forms of legislative action to limit gun access and deter gun violence. In fact, 88% of Americans support universal background checks for all gun purchases and two-thirds of Americans support banning assault weapons. So, what can you do? Here are some suggestions and links to resources: 1. Vote. Every Senator, Congressperson, and Governor who ignores the undeniable logic of common-sense gun laws can be voted out of office and stripped of their power. If you want real change, then commit to voting for and supporting candidates who are in favor of meaningful changes to our federal and state gun laws. 2. Make your voice heard. Regardless of where you live, call your Senator, Congressional representative, and Governor and express your views, and encourage people you know to do the same 3. Use your financial power. As individuals, each of us can commit to not supporting companies that make contributions to politicians who accept money from the gun lobby and/or do not support legislation to help stop gun violence. And companies and other organizations can similarly make this type of commitment. 4. Donate (if you can). Support organizations that advocate for stopping gun violence, including Everytown for Gun Safety; Sandy Hook Promise; and Giffords. These organizations are making an impact even if it doesn’t seem like change is happening. 5. Volunteer. Each one of the organizations listed above can use support. Or you can volunteer to help candidates who are committed to passing gun control legislation. There is power in numbers. If we all do our part and trust that others will do the same, we can help to erode the gun lobby’s influence. Our firm hopes and believes that there is enough anger and passion now that companies and individuals will have a sense of collective responsibility to ensure that change happens. As for August, we are individually and as a firm making donations to each of the non-profit organizations that are listed above. We are committing to not supporting businesses or organizations that make contributions to or otherwise support the gun lobby. That is just our starting point. We will continue to advocate for change and support the effort to implement sensible gun control laws – because in following Coretta Scott King’s guidance we are using our small slice of power to help bring about positive change. It’s either that or be part of the problem.

Steve Ginsburg, Head of August’s Diversity, Bias, and Discrimination Practice, recently shared a post that was featured by LinkedIn News in “Companies pressured to speak on Roe.” The article includes expert commentary regarding heightened pressure on companies to opine on social issues in light of the leaked draft Roe v. Wade opinion. Silence won’t be sufficient for long, and Steve encourages executives to understand their audience, make brave decisions, and communicate them clearly in critical moments like these. To see the full story, click here.