Nurturing ESG communications: how to master your ESG marketing
With consumer, stakeholder and regulatory pressure rising, ESG communications can no longer be an afterthought.
Even the nature of the term ‘ESG’ itself - standing for environmental, social and governance - often causes confusion, depending on who you’re talking to. For investors, ESG is a framework that allows them to evaluate and screen potential investments for material risks. But for the majority of consumers and stakeholders, the phrase refers to the measures a business is taking to make their operations more sustainable and purpose-focused.
Let’s be clear, I’m better with words than numbers. So, for the purposes of this blog, I’ll be talking about the latter understanding, answering the question: How can you strengthen your ESG communications strategy?
Businesses that choose to embrace ESG marketing reap the rewards. From stronger brand presence to greater staff retention, prioritising ESG is good for your profile, people and the planet.
And the truth is, you simply cannot afford to neglect your ESG communications strategy. Today, it’s a vital driver for new and sustained growth.
At Pod, we pride ourselves on being an ESG communications agency. We’re a team of passionate green marketing professionals that can deal with all aspects of stakeholder comms, especially ESG marketing – from planning to creative delivery.
Here, we explain what to bear in mind when talking about your corporate ESG strategy - from the background to developing an ESG communications strategy, to common pitfalls and, ultimately, how to win at ESG marketing.
Why do you need a corporate ESG strategy?
Put simply, consumers and employees want businesses to do more on ESG. One report found that 83% of consumers think companies should be actively shaping ESG best practices, and 76% said they would discontinue doing business with a company that treated employees, communities and the environment poorly.
People want businesses to deliver beneficial products and services, while operating sustainably and reducing their environmental and social impact. They want to work for companies whose vision and values align with their own. And with many investors citing sustainable businesses as being worth more, it’s no surprise many businesses are viewing ESG as a worthwhile, long-term investment.
Setting a corporate ESG strategy makes clear that you’re committed to considering your impact on the environment and society. It establishes a benchmark for how your company operates, as well as laying the foundations for improving ESG performance.
Did you know?
The Competition and Markets Authority found 40% of green claims online could potentially mislead consumers, leading to the Green Claims Code.
The best-performing businesses don’t undertake ESG initiatives on the side. Instead, ESG is integrated into their overarching corporate strategy, alongside growth and profitability.
When done well, ESG communications raise your profile, reputation and, inadvertently, profits. But these depend on setting clear ESG targets, successfully monitoring how you’re tracking against these metrics, and ensuring achievements are reflected in comms in a fair, honest and proportionate way.
Otherwise, you can find yourself with a crisis on your hands, resulting in damaged brand reputation, regulatory fines and a plummeting bottom line.
How to avoid greenwashing
Against this backdrop, the dangers of a ‘green sheen’ to your ESG communications are considerable.
Let’s consider terms such as ‘greenwashing’, ‘greenhushing’ and ‘greenwishing’.
Greenwashing
Greenwashing is making false or misleading claims about the environmental benefits of your products or services, or the sustainability credentials of your business.
Greenhushing
Greenhushing refers to the practice of under-reporting or choosing not to disclose how you’re progressing against your net zero targets.
Greenwishing
Greenwishing suggests that, for all a company’s good intentions, many ESG strategies lack meaningful impact. They either fail to achieve the intended results or overestimate the impact made. This is becoming an increasing business concern, as greenwishing can lead directly to greenwashing if not tackled effectively.
Read more about each of these green claims and their consequences.
So, the question is how to avoid greenwashing, greenhushing and greenwishing when talking about ESG?
3 steps to mastering ESG marketing
1. Track and communicate transparently
The first step towards mastering your ESG marketing is understanding the importance of transparency. From rigorously reporting on and monitoring your ESG ambitions, to meticulously communicating these accomplishments, it pays to prioritise transparency.
All stakeholders - from customers deciding whether they want to do business with you, to investors assessing future growth - value openness.
So, set clear, measurable and realistic ESG objectives, consider third-party evidence to support the progress being made, and disclose accurate data about your ESG credentials.
In line with the Green Claims Code, you can then be sure that your ESG communications are truthful, unambiguous and meaningful.
For ESG marketing to be credible to consumers and investors, transparency is paramount. Communication alone will not carry weight - any claims need to be substantiated.
2. Embrace and embed ESG
The second step is to fully embed ESG in your corporate strategy. To nurture new growth and profit opportunities, ESG should be at the very heart of your business.
When working with brands, we often start with the question: ‘why’? Obviously every company wants to make a profit, but it’s your business's reason for being that resonates with audiences. And they want to know how your business benefits people and the planet.
From the board and c-suite level, to business leaders and operations, everyone must know your reason for being, and these ESG values have to be embraced as part of your company’s DNA.
Then, when it comes to communicating your ESG efforts, this activity will be so much more impactful, because your business will be truly living its ESG values.
3. Progress trumps perfection
The third and final step? Just get started. No one is expecting your ESG credentials to be instantly impressive. In fact, no matter how good your corporate ESG strategy is, there will always be bigger and better strides to be made.
Don’t be afraid if your current ESG standing is less than you’d like. The important thing is getting started. If consumers, employees and investors can see that you’re serious about championing ESG best practice, then this will stand you in good stead going forward.
What’s more, remember that many will find it empowering if you share lessons learned along the way. Some businesses may deem a project a failure if the desired ESG results aren’t achieved, but being honest about the challenges you faced and why objectives were missed can go a long way towards building trust. ESG is a journey we’re undertaking together, and ESG marketing needs to reflect that, offering your business a chance to demonstrate real authenticity.
When it comes to ESG, progress trumps perfection every time.
On that note, maybe you’re ready to get your business started on its ESG journey? Perhaps your net zero targets are underway, and you want to maximise your ESG marketing efforts?If so, be sure you don’t miss the Pod’s ‘Definitive guide to successful strategic communications’. Download your free copy here.