ESG: real change or risk management?
The conversation around sustainability has been raging for years. I remember going on my first marches in the 1980s about greenhouse gasses, the hole in the ozone layer and destruction of forests from acid rain (what happened to that?).
This is not to demonstrate my age – yay for the midlife warriors. But to ask - what has changed?
Well, a lot actually – but not enough. Too often businesses stymie progress for fear of being accused of greenwashing on the one hand or over claiming that using their product will help solve the climate crisis on the other. Or pursuing the ever elusive win win leading to a collective paralysis with very little action.
The conversation within businesses has certainly progressed, yet too often that is just what it is. A conversation of hand wringing, reporting and looking backwards rather than really driving change. Change being the transition of business practices to reduce the impact we have on planet and people.
All businesses must look at adaptation, be it legacy businesses, who can have huge impact but take far too much time. Or newer startups that can disrupt and agitate.
Too many are spending disproportionally more on reporting ESG than on innovating and adapting. ESG has become a risk management tool looking backwards than something to drive positive impact for the future. Instead, we should be using all the tools we can to finance and drive the transformation business needs to ACT.
So, what is the optimum strategic approach?
Embed sustainability and ESG practices in the business so ALL parts of the business are accountable to drive change with the same lens of impact on planet, people and profit – and a clear and honest assessment of the trade-offs needed
Not what you say but what you DO – impact over intent. Use your PR and Comms teams to talk about what you have done. What difference you have made. Where and how you have collaborated with your customers, your supply chain, your people to make a difference.
Have real targets – how often have we glazed over big number targets for 10, 20, 30 years and beyond? How about a yearly roadmap and be honest if (and when) things slip. We have entered a collective paralysis based on the fear of not having all the answers, not having a win win or being honest about the trade-offs
Measure it – this means we deliver outcomes not outputs, impact not reach. The so what of tactics should always be filtered through the lens of why are we doing it? What is the end game? Who will it impact? How will we know we have done what we said we would? Get this right and the fear around greenwashing lessens.
Often it is the structures of the business, the silos and functions not sharing the same strategic agenda that stymies progress. Comms can and should be the thread that pulls it all together and be the independent voice that can highlight the changes that need to be made (see point 1 above)
Communications, PR and corporate affairs – whatever moniker you use – are protecting and promoting reputation. On business transition and adaptation, we have a major role to play.
But first we need to do three things:
1. Understand how your business makes money
Sit on commercial teams, listen to sales people, listen to shoppers and consumers - understand their wants, their pain and why your product, service, idea is important. This is not only to understand how you make money but also how best to communicate changes that may need to be made and how best to make decisions about trade-offs.
2. Bring different perspectives
Communicators have an antenna to understand issues, risk and can empathise. It is one-part active listening, but mainly ensuring different voices are heard. With change, we must bring new perspectives to enable better decision making.
3. Make connections
Too often we ignore people because we can’t immediately see the value they may bring - we don’t see the connections. Being able to think laterally and really empathise. I mean really, no platitudes here – have the tough conversations, listen to the tough views – then see.
How can Natasha help you?
1. Facilitate the tough conversations to build you a strategy that is based on a solid foundation of action
2. Develop credible narratives that amplify and build resonance with your stakeholders – to drive collaboration and action
3. Deliver training so you can learn more about greenwashing, green claims and what you can say and how you act.
The need for business to adapt, transform and reduce their impact on the planet is not going away – so just get on with it.
Natasha is The Academy’s specialist on all things ESG and Comms Strategy, the founder of Spinning Red and a senior level corporate communications specialist with a keen interest in travel, wine and good food – all things we hope AI will let us do more of!
