Having robust sustainability messaging will make your business more profitable

Getting sustainability right is profitable.

A study by Bain & Company and EcoVadis covering 80,000 private companies and 20,000 listed companies found that most businesses working to improve their environmental, social and governance (ESG) impact recorded revenue growth and earnings. Furthermore, employees at companies with a strong focus on ESG are more likely to be satisfied, and companies with satisfied employees have three-year revenue growth up to 6% above those in their sectors with the least satisfied employees.

However, another survey by Capgemini Research Institute found that, of 668 large businesses, almost half (45%) believe that there is no clear business case for improving environmental sustainability and 53% said that the cost of sustainability initiatives always outweighs the benefits.

To put it simply – the businesses in the Capgemini study are wrong.

The UK’s 2023 Green Finance Strategy states that “supplying the goods and services necessary to reach global net zero ambitions is estimated to be worth up to ￡1 trillion to UK businesses to 2030”.

Furthermore, a University of Cambridge study found that, by the late 2020s and early 2030s, about ï¿¡50-60bn a year of additional capital investment will be required each year, every year in order for the UK to remain on track to meet its net zero climate targets.

So, if sustainability is profitable, getting your sustainability messaging right is also profitable. And the opportunity for this revenue growth isn’t going away any time soon, as exampled by the Green Finance Strategy and University of Cambridge study.

Nonetheless, it is daunting compiling robust sustainability messaging – there’s a reason that terms like ‘greenwashing’, ‘green hushing’, and ‘green botching’ have grown in popularity (even if all these terms can make you feel a little green around the gills… Sorry).

The most important element of your sustainability messaging is to communicate that it is a journey – very few businesses have been pursuing their net zero goals from a low-carbon starting point. Consequently, taking your audience on the journey with you is absolutely crucial, and erring on the side of caution and accuracy while laying out a clear path to your goals is equally important.

But why is the messaging so crucial? Because without the steady drumbeat of internal and external communications, it’s impossible to tell your story. Effective internal communications will increase employee satisfaction which, as we’ve seen above, improves revenue growth. Honest and passionate external communications will help bring your audience on your net zero journey, which will help ensure your audience is also your customer.

Of course, it is tough to devise clear sustainability messaging without the presence of clear policy on net zero, which the UK unfortunately does not have. We had an “unlawful” climate strategy which was updated in a rather underwhelming “green day / energy security day” (and, consequently, the legal issue isn’t going away for the government). More recently, Rishi Sunak rolled back on a number of net zero policies.

However, businesses cannot afford to wait for clearer direction from government to begin devising or building upon their sustainability messaging. With net zero being an obvious dividing line between the Conservative and Labour Parties as we approach a general election, and the latter still unsure on how to finalise plans for green investment, both parties are there to be convinced. The only way you’ll succeed in engaging with either party is by having your ducks in a row for net zero communications.

So, having robust sustainability messaging helps you:

1.????? Increase your profit.

2.????? Improve employee engagement and satisfaction.

3.????? Communicate with your audience and customers.

4.????? Engage with politicians and parties.

It’s a wonder, then, why any business is approaching 2024 without it.

Cavendish Consulting has an award-winning corporate communications team with passion and know-how for devising sustainability messaging. To find out how we can help you craft key messaging and position yourself to better communicate with key audiences, please get in touch with Sam Freedman – sam.freedman@cavendishconsulting.com.