In the upcoming years, you may face skepticism from your audience when it comes to your ESG and sustainability communications and initiatives. However, don't worry, because understanding their behavior will help you steer clear of any brand reputation pitfalls. Here are some other reasons why we might encounter skeptics in our workplace:
Sometimes, companies fail to provide clear, comprehensive, and verifiable information about their environmental, social, and governance practices and performance. This lack of transparency can lead stakeholders to question the authenticity of the company's claims. For example, when a company's ESG report lacks specific data on carbon emissions reductions, social impact initiatives, or board diversity, it raises doubts.
According to a survey conducted by the Global Reporting Initiative (GRI), 70% of respondents believe that companies should provide more detailed and transparent ESG disclosures.
Stakeholders become skeptical when they feel that companies are only engaging in ESG initiatives to meet regulatory requirements or to appear socially responsible without genuine commitment. This is often referred to as "check-the-box" approach. For instance, launching a one-off community engagement program solely to fulfill ESG criteria without a long-term commitment can be seen as insincere.
A report by Edelman reveals that 76% of respondents believe that companies focus on ESG solely to improve their image and reputation rather than making a meaningful impact.
Negative media coverage and stories about corporate misconduct or environmental accidents can also contribute to skepticism about a company's overall ESG commitment. Despite positive ESG efforts, incidents like an oil spill can fuel doubts about a company's commitment to environmental responsibility.
According to a study by Media Tenor, negative media coverage related to ESG issues has increased by 26% between 2018 and 2021.
Stakeholders may question the authenticity of a company's ESG commitments if they perceive them as mere marketing or public relations efforts without tangible actions. For instance, when a tech company pledges to reduce its carbon footprint but fails to outline specific targets or strategies, investors and activists doubt the company's sincerity.
A report by PwC indicates that 61% of investors are concerned about "greenwashing" and the authenticity of ESG claims made by companies.
When discussing these common sources of ESG skepticism, it's crucial to emphasize that addressing these concerns requires genuine commitment, transparent reporting, and measurable progress. Encourage comms directors to proactively address these sources of skepticism by demonstrating a commitment to authentic ESG practices and transparent communication. Use real-world examples and data to illustrate the impact of skepticism on corporate reputation and the benefits of building trust through genuine ESG efforts.
Contact us to help you turn your ESG Critics into Advocates: hello@communique.global