What does ESG mean in PR and communications?
Businesses are continually having to navigate through muddy waters to create a business strategy that aligns with the current focus on ESG (Environmental, Social and Governance). And the challenge doesn’t end there – businesses also need to ensure that they’re effectively communicating their ESG policies to those who matter.
According to the PRCA (Public Relations and Communications Association), 45% of PR professionals have encountered greenwashing, with a staggering 75% saying that clients are jumping on the climate bandwagon. While there are tangible methods available to help businesses measure their impact, only 24% of practitioners say that their clients set science-based targets and 59% say that their clients do not measure carbon footprint.
There’s no doubt that PR practitioners have a long way to go in helping businesses communicate their policies accurately without it becoming a smear campaign.
Communicating ESG policies starts in PR and comms. It sits at the very centre of a marketing ecosystem and should be firmly instilled in your purpose, vision, values, and wider strategy. In comms specifically, ESG should be honest and transparent. Actions should always speak louder than words. For example, if a business is claiming they care for the environment, what steps are being taken to make a real and lasting impact? This is what all practitioners should be asking their clients – and unfortunately planting a tree just isn’t going to cut it anymore.
Businesses are evolving and have an opportunity to be transparent. The ‘E’ in ESG often overpowers the ‘S’ and the ‘G’. According to a report by BDO1, almost a third of mid-market companies have admitted they face a high or very high risk of losing out on business if they fail to acknowledge ESG.
Reporting must be transparent and robust. Large corporate businesses should be publishing investor impact reports or corporate sustainability reports. PR professionals should be given sight of these reports to help inform comms accurately. Similarly, certifications such as B Corp are also growing in popularity. It can help to “build trust with consumers, communities, and suppliers; attract and retain employees; and draw mission-aligned investors.”2
If you’re unsure where to start, and you’re looking to address the lack of science-based targets, check out the Science Based Target initiative (SBTi). Primarily, it’s a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF) and well worth considering as part of your wider communications strategy.
For further information or guidance on ESG communications, check out our webpage and case studies.
And if you’re looking for a Birmingham PR agency, get in touch today to find out how we can help with your ESG strategy.