ESG is a critical element of most business strategies nowadays, but how can brands leverage ESG reporting to strengthen their position?
Environmental, Social and Corporate Governance (ESG) has risen up the agenda at a dramatic pace over recent years. Impactful ESG practices are great, but the businesses who really reap the rewards are the ones who shout about it. When ESG goals are aligned with a clear PR and communications strategy, businesses can earn the trust and loyalty of customers and stakeholders.
With that in mind, we’re taking a look at how effective ESG reporting strengthens companies’ positioning and grows their business.
First things first: What is ESG?
ESG stands for Environmental, Social and Corporate Governance. It’s a decision-making framework that helps guide a business towards more ethical choices around sustainability, employee wellbeing, transparent processes and more.
For example, the environmental element of an ESG strategy might mean choosing to buy materials from a local company to minimise the carbon footprint created by shipping. Social considerations may entail working alongside local communities or focusing on employee wellbeing; corporate governance could include a commitment to diversity in leadership teams.
Successful ESGs filter right through an entire organisation. Anything less could lead to accusations of greenwashing or insincerity, damaging efforts to engage customers.
But for businesses who authentically practice ESG, it offers a competitive advantage. By treating ESG as a core part of their culture, businesses can build trust with customers, achieve strong engagement with employees and improve transparency with stakeholders.
Why is ESG reporting important for businesses?
To really see the commercial benefits of a fantastic ESG policy, businesses have to clearly communicate to customers, employees and stakeholders about the positive actions they’re taking – it’s why ESG reporting is vital.
ESG reporting is the reporting and disclosure of an organisation’s ESG strategy, processes and achievements. Basically, it helps stakeholders keep track of a company’s progress towards its ESG goals.
When backed up by intelligent PR and marketing, ESG reporting strategies can do wonders for a brand’s reputation. If your business is making smart, impactful decisions guided by ESG, you should tell the world about it with ESG reporting, PR or a green marketing campaign.
Done right, ESG reporting is a powerful expression of a company’s values and missions. Communicating a clear set of beliefs and proving that the organisation is living up to them can help businesses attract the best talent, as well as improve customer loyalty – ultimately driving sales.
What you need to know about ESG reporting
So, what steps do brands need to take to build a powerful communications campaign based around their ESG reporting? First, they need to make sure their ESG reporting is up to scratch.
Having helped brands including Avery Dennison and Asendia position themselves as ESG leaders in their industries, we’ve picked up some insights along the way. Here’s The Think Tank’s top tips on how to approach ESG reporting:
Tip 1: Audit your business practices
The starting point of good ESG reporting is having as complete an understanding of the impact of your business’ operations as possible. Thorough auditing of supply chains and operational processes, can help businesses gain insights on their emissions, employee welfare, community impact and more.
By taking stock of your progress and ESG goals, you can gather the information you need to plan ahead.
Tip 2: Make the most of technology
Automated tools and technologies can help track progress in real time. For example, global logistics expert Asendia developed a CO2 Calculation Tool to track and share the carbon impact of its deliveries.
By investing in data tools, businesses can follow Asendia’s example and enhance the accuracy of their ESG reporting while also demonstrating a commitment to continuous improvement and transparency.
Tip 3: Collaborate with trusted partners
Working with partners who can demonstrate they are dedicated to ESG means businesses can ensure there are no holes in their own ESG reporting across their operations and supply chain.
That means choosing partners who can prove their commitment to ESG – perhaps through clearly measured net zero schemes, a robust framework of ethical employment practices, a strong commitment to data transparency or any other means of quantifying their progress towards their ESG goals.
It can also create opportunities for collaboration and knowledge sharing to improve both businesses ESG performance and discover new avenues for progress.
Tip 4: Communicate it effectively
So, your ESG strategy is on track and you’ve set up robust reporting mechanisms. The next step is telling everyone about it.
It’s a question of crafting the story you want to tell about your ESG achievements, then working out how to express it. Once you’ve done that, it becomes about harnessing the right channels to tell that story to key audiences.
But that’s easier said than done. To really maximise the commercial benefits of your ESG reporting, you’ll need a little from experts in the field of PR and communications strategies.
Here at The Think Tank, we put together PR and communications strategies built around the positive ESG contributions made by brilliant B2B brands. Working with established brands like Asendia and Avery Dennison, we’ve got a track record of positioning businesses as influential leaders in their industries by spotlighting their ESG reporting.
By constructing and amplifying a compelling narrative around your ESG reporting, we can help you boost customer loyalty, improve talent acquisition and demonstrate the authenticity of your company’s values.
If you’re looking to tell the world about the positive difference your ESG strategy is making, let’s talk.
