At Climate Week NYC and the UN General Assembly, Axios House hosted a discussion on how corporations both public and private are navigating environmental, social, and governance (ESG) priorities amid growing political scrutiny and reputational risk. Executives from Carlyle, Patagonia, and Gap shared candid views on what drives progress, where gaps remain, and how reputation continues to shape corporate sustainability strategies.

Scope and Strategic Framework

Megan Starr, Global Head of Corporate Affairs at Carlyle, opened the dialogue by comparing ESG progress between privately held and publicly listed companies. Private firms, she argued, are often able to move faster on decarbonisation and job growth, while public companies have stronger track records in diversity initiatives and renewable energy procurement. These differences, Starr noted, reflect the pressures of shareholder structures and the freedom or constraints each ownership model creates.

Other speakers included Patagonia CEO Ryan Gellert, Patagonia Chief Impact and Communications Officer Corley Kenna, and Gap Inc. Chief Communications Officer Mame Annan-Brown. The event, moderated by Axios’ Eleanor Hawkins and sponsored by Weber Shandwick, explored how companies are aligning ESG goals with corporate culture, communications, and long-term strategy.

Economic and Environmental Impact

Data shared during the session highlighted the measurable differences between private and public ownership models. According to Starr, publicly listed companies reduced Scope 1 emissions by only 0.4 percent between 2023 and 2024, while private equity–backed firms achieved a 2.3 percent reduction. A similar pattern emerged for Scope 2 emissions, with public firms reporting a 1 percent decrease compared to 5.4 percent for private companies.

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These figures suggest that flexibility and long-term capital structures may enable faster operational decarbonisation in private firms. However, public companies’ more transparent reporting structures can create broader accountability on issues such as diversity, equity, and renewable procurement.

Corporate Governance and Transparency

Speakers also reflected on the role of language, reputation, and trust in shaping corporate impact. Patagonia’s Corley Kenna revealed that the company deliberately avoids using the term “ESG,” instead framing its efforts in terms of values and mission. “Part of the special sauce,” she said, “is that we haven’t relied on acronyms or corporate fads.”

CEO Ryan Gellert reinforced that reputation is central to Patagonia’s operating model. “There are things that take forever to build and seconds to blow up,” he said, stressing that trust is a fragile yet essential asset. For Patagonia, aligning operations with ecological limits is not a branding exercise but a necessity for business continuity.

Gap’s Annan-Brown highlighted the apparel industry’s heavy dependence on water, noting that the company’s supply chain consumes around 20 billion litres annually. She outlined measures to recycle and reuse water, while partnering with conservation organisations to address the global water crisis.

Collaboration, she added, is critical: “We’re only as strong as we are as a collective.”

Challenges to Scaling

The discussion underscored the tensions companies face in balancing investor expectations, regulatory uncertainty, and authentic stakeholder engagement. Public companies operate under constant scrutiny, which can slow experimentation but drive transparency. Private firms may deliver faster decarbonisation results but face less external oversight, raising questions about consistency and long-term accountability.

Another challenge is communication. As political debates around ESG intensify, companies must decide whether to lean into the terminology or, like Patagonia, find alternative narratives that resonate more authentically with employees and customers. In all cases, reputation remains a double-edged sword — an asset that can strengthen loyalty but also a vulnerability if actions fail to match words.

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Future Outlook

The Axios House dialogue reinforced that ESG is not a monolithic framework but a collection of practices shaped by ownership models, industry pressures, and cultural context. As regulatory requirements expand and reputational risks increase, companies will need to align financial performance with environmental and social outcomes. The consensus among speakers was clear: sustainability can no longer sit apart from corporate strategy. Whether through private equity’s rapid operational changes, public companies’ transparent disclosures, or mission-led brands like Patagonia, ESG performance is increasingly tied to financial resilience and stakeholder trust. The challenge ahead lies in scaling these efforts across industries while maintaining authenticity and credibility in the face of heightened scrutiny.

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