Two years ago, I did not know anything about ESG let alone how to communicate it. My interest in the subject started last year when I was working for one of the major fossil fuels organisations and this is when it struck me that saving the environment is not enough, we really need to look at the picture from a holistic point of view if we are to make a difference.
I started researching the topic and speaking to hundreds of subject matter experts in the field. This is when it struck me that throughout my 22yr career, I was communicating ESG, I just did not know it was called that. I started writing case studies on all the campaigns I led on the subject. By doing so I clearly saw the importance of communicating ESG as a wholistic campaign and not look at them as a tick boxing exercise. Below are my thoughts on why we need to look deep into the importance of communicating ESG if we wanted our organisation, society, and economy to thrive.
Environmental, Social and Governance (ESG) is gaining quick traction and capturing investor attention globally. Therefore, communicating the story to engage customers, investors and employees is vital. Storytelling around ESG initiatives will help organisations create clarity and accountability in a way that amplifies its ESG impact while satisfying or even exceeding demands for transparency.
Communicating ESG will help cement the organisation’s brand narrative, purpose and Employee Value Proposition (EVP), this is crucial if the future talent who are mainly Millennials and Gen Z and we know that they are the ESG generation who will see through the inauthenticity if communications was not done correctly
Communicating ESG effectively will enhance corporate reputation, improve operational efficiency, and manage risk effectively, driving growth and innovation and strengthening competitive advantages. For Fintech, the only report I found to support this point is priced at $400 which I didn’t buy.
One of the most important advantages of sustainability communication is that it helps improve the company’s ESG Rating. ESG factors are used to measure the sustainability or ethical impacts of an organisation. ESG Ratings or an ESG score, in many cases, can act as a tangible indicator of a sustainability performance.
Governments are continuing to enact policies that prioritize sustainability. This means businesses will be expected to communicate what part are they playing in driving the sustainable agenda if they are to be permitted to operate in certain markets.
Corporate websites are ranked fourth for investors when researching and considering investing in an organisation, therefore it is crucial that this channel would clearly highlight the ESG efforts and how it relates to the business growth.
The future of sustainability communication should not just be about producing a single report once a year, but it is about finding new and creative ways to communicate such technical data to make ESG mindset the norm and not the exception.