In research done in 2022 consisting of a sample size of 36000 people in 28 countries, the Edelman Trust Barometer found that 58% of consumers will buy and promote brands based on their beliefs and values. Similarly, the research pointed out that 60% of employees will choose a place to work based on their beliefs and values. Up to 64% of individual investors consider a company’s culture and values before putting in money and resources. 52% of those interviewed said they want businesses to do more to tackle emerging social issues like climate change and racism.
ESG marketing is the process of actively involving environmental, social, and governance attributes of a company’s strategy to its employees, investors, customers, and other stakeholders. Sustainability and impact are major topics in social media and are always the subject of discussion in everyday conversations. We cannot overemphasize the impact that this could have to the organization and business as a whole.
E in ESG stands for environmental. It means energy resources and waste produced. The goal is increased sustainability, even at higher costs. Issues such as the use of renewable energies, carbon footprint, treatment, and re-usability of waste will be encompassed here.
S is for social. Alignment of social values and commitments to communities, employee welfare, diversity, and inclusion are important here. Policies that protect people from exploitation and discrimination while giving back to the less fortunate and disadvantaged are one of the operational ways this is shown.
G means governance. It mainly involves investors and the system of procedures, practices, and controls that the business adopts to comply with the law and meet the needs of external stakeholders.
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Getting your ESG right will directly create value in the following ways:
- Growth – A strong ESG campaign helps companies tap new markets and expand into existing ones.
- Reduction in costs – Alternative raw materials, energy used can contribute to a reduction in operational costs for the business.
- Reduced regulatory and legal interventions – Presenting a strong ESG case can lead to the creation of trust between the business, customers, and government institutions reducing legal action and facilitating the obtaining of permits and licenses.
- Improving employee morale – A strong ESG proposition of inclusivity, good policies, and improved staff welfare will help in attracting and retaining top employees and consequently improve morale at the workplace.
Directors, shareholders, employees and consumers all need to understand it to influence the organization positively. Fully aware of ESG and its impact, this article seeks to unpack how organizations could harness the most of ESG to its advantage. Here are a few points to keep in mind.
1. Involve top leadership and executives
Get the approval of leadership at the board level and alignment from executives for resources provision, reporting and inclusion.
2. Get specific
ESG creates value in multiple ways. Different companies within the same industry will have different ways of doing ESG. Even among team members, at the board and managerial level, different individuals will have different thoughts on what ESG values the company should adopt to derive maximum impact and benefit. It’s important to agree on a specific goal and target to avoid splitting resources and effort.
3. Get practical
It is necessary to involve and get everyone on board so as to link ESG priorities to value and show investors, leaders and employees how all this fits to the company’s business model. By researching all potential initiatives and publishing the results, rigor is enforced among the investors and public and this helps in ensuring that practical actions will follow.
4. Communicate your purpose
Using the ever-so-reliable social and print media advertising channels, show the world what you have done with your ESG plans and strategies and show long-term commitment to achieving targets with regard to the same. Highlighting the direct relationship between sustainability and performance will support your ESG marketing efforts.
5. Be real and truthful
Lack of authenticity is a real enemy of ESG in the court of public opinion. Consumers and critics are able to see beyond this and either could negatively impact on the business with potentially catastrophic impact.
6. Encourage collaboration
Consider partnerships across companies as well as cross-functional collaboration. Marketing, finance, legal and various business units within your organization should all get on board with the ESG programs to achieve set goals and targets.
7. Audit commitments
Audit your investors, customers, employees and even suppliers about their attitudes toward ESG. Identify potentially personnel who are not aligned and put effort in getting them on board with the programs.
8. Use consistent, differentiated messaging
By differentiating your company’s unique ESG model and plan, you will stand out from competitors and this will aid in resonating well with potential investors, employees, and consumers that come across the brand.
9. Develop and end-to-end public relations strategy
Media is crucial in shaping public perception. A PR strategy across various media outlets would most likely be beneficial in sharing relevant news, topics and pertinent content with clients and competitors on a frequent basis.
10. Educate via customer and stakeholder engagement
Organize for public forums to engage customers and other stakeholders on your ESG model. Create conversations on how it would be beneficial to the community and all other interested parties.
Summary
Today, people are more aware, attentive, and conscious of how their actions affect everyone and everything around them. ESG not only helps businesses by attracting a more diverse workforce, but it also helps businesses have a positive impact on our world. Companies are changing business models and adopting sustainable strategies that are both profitable and inclusive of all stakeholders. However, in order to derive maximum benefits from ESG, teams need to align their strategies rightly and incorporate everyone on board in making the organization successful in its implementation and adoption.
