Crafting credibility: The power of authentic ESG storytelling

The core mandate of any communications professional is to boost the reputation of the company they work for, in addition to developing trust and creating positive perceptions. To achieve these objectives, seasoned veterans craft compelling PR narratives to build a favourable image of their respective organisations, which, in turn, appeals to key stakeholders and target audiences.

In this era of heightened public awareness, the PR narrative is no longer limited to conventional elements such as profit margins, business growth outlook, fundraises, and expansions. With the steady growth of ESG (environmental, social, and governance) consciousness, the communications matrix now factors in non-financial performance indicators, i.e., the deeper impact of a corporate on society, the community, and the environment through its actions.

The Havas’ Meaningful Brands 2023 India report is a case in point. According to the report, over 65% of people surveyed prefer to engage with purpose-focused brands rather than profit-driven ones. However, 68% claim they would stop buying from companies that neglect the welfare of the planet or society.

So, there is a reputation risk involved if brands fail to create a credible ESG-driven narrative. But it presents an exciting opportunity if companies combine business vision and societal expectations in their plan.

Embracing authenticity to deliver a deeper impact

ESG communications need to reflect sincerity in the approach. Goals to achieve the ESG goals should be target-driven, and the timelines to achieve these targets span decades.

Achieving targets related to carbon neutrality, water-positive goals, net-zero emissions, and gender diversity is a long-term process. Professionals need to engage with the ESG journey at every phase to craft authentic and interesting storytelling.

What’s encouraging to note is that both corporates and PR agencies are gradually showing maturity in strategizing ESG communications. They have realised that the effectiveness of ESG key messaging paves the way for a company to project a differentiated image, making it easier for the corporates to gain access to quality growth capital and attract better human capital.

Putting the core ESG vision before everything else

At a time when ESG integration is becoming vital, communications professionals need to ensure that the pursuit of publicity doesn’t dilute or overpower the core vision of sustainability. Prioritising enhanced transparency is critical, as investors and the general public now have options to cross-verify information from various sources.

This makes it imperative for companies to be forthright about their ESG data and metrics. The transparency should encompass both achievements and setbacks, fostering trust and credibility with stakeholders. A great ESG communication strategy is based on authenticity and actions.

To devise an impactful ESG communication, communications professionals need to go beyond mere PR messaging. The expertise lies in crafting narratives that are not just informative but also inspiring, motivating stakeholders to engage with and support the company’s commitment to ethical practices and sustainable growth.

To put it another way, effective ESG communication requires more than just broadcasting achievements. The storytelling should be aligned with the company’s core values and long-term vision.

Consider this fact—as per various industry reports, about 9% of commercial pilots today are women. The US-based airline Delta Air Lines built an impactful narrative on an inclusive workforce with a social media post on its first officer Natalie Stromgren, who had completed her final flight for her full flight certification. The post achieved massive engagement on social media, strengthening the carrier’s gender equity narrative through real-life storytelling and setting the stage for broad-based leadership communication, which eventually adds to the reputation of the brand.

Collaboration—The way forward

The ESG journey usually draws its strength from the synergy among multiple departments such as investor relations, CSR, compliance, etc. To achieve the desired results, communications professionals need to work closely with all the participating divisions to understand the core vision and build a credible ESG communication narrative.

Key management personnel in charge of implementing ESG goals can’t afford to function in isolation. They should engage regularly with the communications team to help the PR managers demonstrate the true intent and showcase the journey to earn stakeholders’ faith.

As David Blood, founding partner of Generation Investment Management, a sustainable-investment firm, puts it, "If you use sustainability and ESG as a marketing tool, you’ll be found out. If you use it to drive business value, you're going to be successful."

Manali Pilankar, associate director corporate communications at JM Financial