Communicate ESG, so that it sticks! With Kristine Nagle (Your Impact House).
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According to Kristine Nagle, communicating ESG it's not about learning to tell a "good story". And it starts from communicating to your own employees.
As part of her work at Your Impact House, Kristine Nagle supports businesses in developing strategies and creating policies to support the implementation of meaningful change. Her previous experience includes managing accelerator programs at Startup Wise Guys , gaining a global network as the CEO of TechChill , and recently building and implementing a CSR strategy for the first Latvian unicorn company - Printful .
Kristine also has a great YouTube channel about all things ESG communication and strategy, you can check it out here!
The person leading ESG and then communicating ESG efforts has to have a broader understanding of the business environment and current reality. Without that, the messaging can become tone-deaf and irrelevant, thus losing authenticity.?
What common misconceptions or mistakes in ESG communication? have you observed, and how can organizations avoid falling into these traps?
The lesson I learned when working with PR and crisis communication applies also to ESG - internal communication comes first.?
We sometimes forget that, by the end of the day, employees are the most important stakeholders, as the teams' attitude and perception of the company and its leadership can significantly impact the company's financial results.
That's why I'm always a strong advocate for considering how ESG communication will be perceived by the employees and prioritizing informing employees so they don't learn about big strategic shifts from the news or social media.?
An additional benefit of considering employees when building an ESG Communication is the “reality check” the company gets. Employees are harder to fool - they know the business inside and out and won't fall for greenwash-y visionary claims as they see the reality of the business day in and day out.?
When communicating ESG, transparency and honesty are integral to making it successful. And that has to be true, especially for internal communication. I'd suggest having an “employee persona” in mind when building the ESG communication to keep yourself grounded in reality.
The harsh truth is, sometimes organizations fail to achieve their ESG goals. How do you navigate the challenge of communicating "bad news" or setbacks in ESG performance to external stakeholders, without resorting to greenwashing or damaging the organization's reputation?
I've recently had to learn more about this through conversations with sustainability leads working in state-owned companies.?
I was encouraging transparency and ambition in the goal-setting process. But for them, the consequences of not reaching their goals make them hesitant even to set goals in the first place. In their case, the consequences can be significant budget reductions, bad PR, or even firings.?
I've concluded that it's a huge problem in the context of ESG, as many of the goals a company could set require collaboration with external stakeholders and the development of new processes. Without setting those goals, there won't be even 30% improvement (which some might consider a failure).?
In reality, many companies don't publish all of their ESG goals. Especially those that they are unsure of actually achieving.?
However, I would like to see us, as ESG Communicators, become better at advocating the importance of publishing the most ambitious goals. I'd say we have to learn to be more proactive in ESG communication - use the resources to foster collaboration, look for solutions, and document the reality of making progress.??
What role does authenticity play in ESG communication, and how can organizations ensure that their messaging aligns with their actual ESG practices and performance?
Authenticity, transparency, and accountability are key.?
When I think of the ESG Communication best-practice examples in the market, they're not always companies that, by their default business model, are the most sustainable. But what makes the communication authentic is:
Practically speaking, the ESG Lead has to have a seat at the leadership table.?
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The person leading ESG and then communicating ESG efforts has to have a broader understanding of the business environment and current reality. Without that, the messaging can become tone-deaf and irrelevant, thus losing authenticity.?
How do you engage and educate internal stakeholders, such as employees and management, about the importance of ESG initiatives??
The leadership team has to be involved in crafting and developing the ESG Strategy, ensuring company management understands why the current strategy is in place.?
Sometimes, management teams invest in additional training to deep-dive into best practices or current ESG challenges. If that's in place, everything else falls into place more easily.?
As mentioned above, employees are a critically important stakeholder group.?
It's important to break down the long ESG report into manageable chunks and educate employees regularly on what progress the company is making and why.?
I'd say it has to happen in the main communication channel the company regularly uses. And the ESG communication should be part of the regular communication.??
Long-term and short-term goals can be difficult to balance, at least on the surface. How do you manage the transition from a short-term approach to a long-term one, from a communication standpoint?
I'd say - context matters. These cases are really common as the whole industries are transitioning to more sustainable operations.?
For example, while the company is transitioning to a new business model or energy source, the old models have to be used to continue operations.?
In these situations, the most important thing is to provide a wider context - explaining why that is the case, how the transition to a more sustainable solution will happen, and when.?
Thank you so much for your insights! Anything else you wanted to share?
Yes - If your goal for 2024 is to develop an ESG strategy, consider joining the online program by Your Impact House: ESG Strategy Know-How. The program is designed for Sustainability Managers who need to quickly learn the best practices to develop and launch an impactful ESG Strategy. The next program will take place live from March 5 - April 11, 2024. You can learn more here!
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Hand-picked AI & tech news to level up your ESG journey
?? Private equity firms are going to increasingly outsource ESG tasks to AI, according to Private Equity international.
In the article, the role of generative AI, such as ChatGPT and other LLM-powered systems, is discussed in depth - especially when it comes to automating compliance against the several ESG regulations that are coming up in the EU and beyond.?
?? APAC to boost adoption of AI for ESG by 2024, according to IDC
IDC's FutureScape report on Global Sustainability/ESG Predictions for 2024 highlights the implications for Asia/Pacific (excluding Japan). According to IDC, by the year 2024, 35% of companies and public service institutions in the APAC region are expected to utilize AI technology for enhancing their ESG metrics and elevating data management capabilities beyond mere reporting. This strategic integration is anticipated to yield sustainability-driven cost benefits and confer competitive advantage to the companies that adopt it.?
?? A study published on Nature showed that companies with particular consideration of ESG were more resilient during Covid-crisis.?
The study showed that S&G items were effective in boosting the companies’ resilience to external crises, and the effect was particularly pronounced for small and medium companies, state-owned organizations, and firms in especially competitive markets.?
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