ESG in communications departments

ESG communication: From Lip Service to Strategic Imperative

In a world where ESG is becoming increasingly important, communications departments need to rise to the challenge and ensure clear, credible, and strategic communication. It's not just a matter of keeping up, but of leading the way.

In this monent as sustainability and social responsibility are on top of every company’s corporate agenda, ESG is no longer a matter of keeping up; you have to be a first-mover.

ESG (Environmental, Social and Governance) has become a key element in companies' business strategies. But what is the state of ESG communication in companies, and how should these same companies handle the increasing focus on sustainability and social responsibility?

I recently read that a wide range of companies are actively working to integrate ESG into their strategies - but of course, there is a marked difference in maturity. For some, ESG is 'just' communication, while other companies have managed to deeply integrate ESG into their core business strategy as a foundation for the company's entire core narrative.

This leaves companies with a need for greater focus on ownership and organization of management and communication.

Lack of Structure and Leadership

A lack of structure in the ESG work can be comparede to a body without a heart. We see many communications managers with a title that has been added something that has a smell of sustainability, but where the involvement in the ESG work is more nominal than beneficial. 

This raises a fundamental challenge: without clear structure and leadership, ESG efforts can easily lose direction and effectiveness.

There is a significant increase in the requirements for ESG reporting, so tighter rules and increased regulation are inevitable, both from the EU Green Deal and the new Corporate Sustainability Reporting Directive (CSRD).

While the regulatory requirements may seem overwhelming, they should be seen as a positive catalyst for companies to work with ESG, although opinions are divided on whether these requirements are realistic and achievable.

Documentation, Credibility and Collaboration

Another important aspect is the need for new focus, new language, and new formats. ESG communication requires a deeper understanding of the specific language and the ability to translate this to the business context. 

The traditional format of standalone sustainability reports is on its way out, and there is a need for integrated reports that can convey complex messages in an accessible way.

Collaboration across the organization is also crucial. Communications professionals don't need to be ESG experts, but they must be able to collaborate with different departments to ensure coherent and credible communication. 

This collaboration requires strategic leadership and a clear structure for data collection and analysis.

A recently published report identifies five critical tasks for communicators: 1) Clarify the ESG narrative and ownership, 2) prepare for integrated reporting, 3) develop and organise a clear data collection structure, 4) integrate into internal communication and 5) highlight evidence for ESG claims and narrative. These tasks are essential to ensure that ESG becomes visible to company’s value creation.

Requirements and Real Value

ESG should not just be seen as a set of requirements to be fulfilled. To truly contribute to the company's value, employees, the market, and authorities must recognize and value the effort. This requires credible and strategic communication, something that many companies are still working to improve.

There are also significant challenges with documentation and credibility. Many companies need clear structures for data collection and analysis, which is essential for providing reliable ESG data and documentation. Otherwise companies cannot meet increasing regulatory requirements or gain the trust of their stakeholders.

Finally, while customer pressure is often seen as a driver of ESG strategy, it is regulatory requirements that really push companies forward. CSRD is a key driver for increased reporting and ESG focus. While this can be a challenge, it is also an opportunity for companies to differentiate themselves and show their commitment to sustainability and social responsibility.