Meeting in progress. Photo: Internet
Environmental, Social, and Governance (ESG), as complex as it sounds is merely a set of standards that investors use to screen investments.
The investments are screened through accelerated sales, and ESG is currently the framework for companies to drive their long-term revenues through investing in Environmental, Social, and Governance projects that foster sustainability, responsibility, and long-term success, in their business.
Examples of investable ESG projects include air and water pollution, deforestation, green energy initiatives, and Waste management among others.
Because of the clout ESG has over brand reputation, some companies have embraced it and going by the Price Waterhouse Coopers (PwC) projections, ESG-focused institutional investment is likely to soar to 84% to US$33.9 trillion in 2026.
However, even with the increased popularity of ESG in boardrooms, many still face challenges on how to integrate it into their organization which unfortunately remains a mere piece of paper.
The successful blend of ESG in your business begins by clearly defining the company’s ESG values and objectives by reflecting the organization’s purpose, vision, and impact goals.
In so doing, it will be easier to identify key environmental, social, and governance issues that are relevant to your industry, stakeholders, and operations.
The ESG values should align with your brand’s identity and resonate with your target audience. Consider conducting stakeholder engagement sessions to gather insights and ensure that your ESG strategy reflects the expectations and priorities of your stakeholders.
Business practices
It is also important to blend ESG principles into your business practices across all levels of the organization such as employee engagement, accountability, and customer satisfaction among others.
Key among business practices is setting measurable targets and key performance indicators (KPIs) to track progress towards your ESG goals. Encourage employee participation and provide training to ensure that everyone understands their role in supporting ESG objectives.
Transparency
Organizations that still struggle to embed transparency communication in their structures are likely going to find it hard to embrace ESG. But those who desire to communicate transparently will benefit tones in the ESG concept.
By communicating transparently, we mean providing employees with both good and bad information being shared upward, downward, and laterally in a way that allows all to see the why behind the words.
Transparent communication to your brand starts from streamlining internal communication; to rolling out to stakeholders through external communications. For those in product branding, transparency goes as far as providing a product that works exactly what is labeled on it.
During transparent communication, clearly articulate your ESG commitments, initiatives, and progress through various channels, including your website, social media, annual reports, and marketing materials.
Use authentic storytelling to illustrate how your company is making a positive impact on the environment, society, and governance practices.
Provide data-driven evidence to demonstrate the effectiveness of your ESG efforts and highlight any certifications, awards, or partnerships that validate your sustainability credentials.
Additionally, be open about challenges and setbacks, and communicate how you are addressing them to continuously improve your ESG performance.
Stakeholder engagement
In the current competitive environment, stakeholders are the first key mouthpieces for your brand. It is thus paramount to engage with your stakeholders to foster trust, collaboration, and accountability around your ESG initiatives by actively seeking feedback from customers, employees, investors, suppliers, and community members to understand their perspectives and expectations regarding your sustainability efforts.
Incorporate stakeholder input into your decision-making processes and involve them in co-creating ESG solutions. Establish dialogue platforms, such as advisory councils or sustainability forums, where stakeholders can voice their opinions, ask questions, and contribute to shaping your ESG strategy.
By engaging stakeholders transparently and authentically, you can build stronger relationships and enhance the credibility of your ESG commitments.
Lastly, regularly monitor and evaluate your ESG performance to ensure your brand remains aligned with evolving standards, regulations, and stakeholder expectations.
Conduct periodic assessments to measure the impact of your ESG initiatives on environmental conservation, social well-being, and governance integrity. Use feedback mechanisms, surveys, and audits to identify areas for improvement and address emerging issues proactively.