The neutralization of ESG risks by leading agri-food companies

Purpose - The purpose of this paper is to shed more light on the motivations for environmental, social and governance (ESG) risk management by agri-food companies and the neutralization techniques used to legitimize the measures taken in this area. Design/methodology/approach - Based on an analysis of the sustainability reporting of 135 companies, this study shows the interdependence between the main motivations for ESG risk management and the neutralization techniques used in disclosing information about their exposure to threats or negative events that could damage their image. Findings - The results of the study allow us to understand the four main complementary neutralization techniques used to obfuscate the negative consequences of risks related to agri-food activities: mitigating ESG threats, addressing global risks through corporate leadership, taking advantage of sustainability trends and turning risks into opportunities. Practical implications - Managers can use the results of this paper to identify the best management approaches to take ESG risks into account more substantially in their company. Social implications - Ultimately, this study is important to improve the practices of agri-food companies and therefore their social legitimacy. Originality/value - The examination of these neutralization techniques and their underlying motivations makes important contributions to the emerging literature on ESG risk management. The study also contributes to research on the disclosure of negative information that can damage a company’s reputation and on the strategies that companies use to promote the social acceptability of their activities.