From metrics to messaging: How ESG factors can boost your brand’s PR efforts

1 06 2023

By Katherine McInnes via Meltwater • Reposted; June 1, 2023

Sustainability, social impact and ethical business practices – this is an era where responsible brand representation dominates the conversation in the corporate terrain. With ethical consumers on one side and purpose-driven investors on another, organisations find themselves in a heightened realm of accountability like never before. But, how do organisations effectively communicate their environmental, social, and governmental (ESG) efforts to the world?

ESG is increasingly becoming a critical aspect of business strategy and reputation management. The convergence of PR and ESG offers organisations the opportunity to shape their reputation and secure a competitive edge, while also navigating the evolving expectations of stakeholders. According to a study by PwC, almost half of investors surveyed expressed willingness to divest from companies that aren’t taking sufficient action on ESG issues. This underscores the importance of understanding and tracking ESG initiatives, and integrating ESG concerns into PR strategies. Identifying key ESG metrics for your brand is the first step toward unlocking what lies at the intersection of responsible communication, sustainable practices and measurable impact.

Why should brands care about ESG?

In today’s business landscape, it is indispensable that brands pay close attention to ESG. These three critical components are significantly important for companies seeking to build a sustainable and successful brand. Each component is uniquely important for brands to take into their business considerations.

Firstly, the environmental component of ESG allows brands to showcase their commitment to sustainability and reduce their negative impact on the environment and helps brands differentiate themselves from each other and attract a growing market segment that prioritises sustainability. By actively addressing issues like climate change, waste management, and energy efficiency, companies can improve their reputation and appeal to environmentally conscious consumers and investors. Brands have different metrics at their disposal to measure the social aspect, such as tracking industry keywords and monitoring ESG developments in their industry to stay informed and establish thought leadership.

Incorporating ESG considerations into PR strategies is indispensable in the
process of establishing a brand as responsible, credible and trustworthy.

Secondly, the social component of ESG allows brands to emphasise their dedication to social responsibility and ethical practices. By focusing on aspects such as diversity and equality, fair labour practices, and data protection, companies can foster a positive image and attract socially conscious consumers and investors.

Today’s consumers, especially millennials and Gen Z, are especially aware of their consumption patterns. In fact, they actively seek out brands that align with their values, thus demonstrating a genuine commitment to social responsibility can create a competitive advantage and foster long-term customer loyalty. A metric to measure this component is by monitoring consumer sentiments. Tracking customer sentiment allows brands to communicate ESG initiatives effectively, identify negative sentiment, and rectify concerns promptly, as timely responses shape positive public perception and maintain appeal to investors, stakeholders, and customers.

Thirdly, the governance component of ESG is crucial for brands as it demonstrates a commitment to ethical decision-making and transparency. By addressing issues like board composition, political contributions, stakeholder-focused business operations, and lobbying efforts, companies can build trust and credibility with stakeholders. Strong governance practices not only helps mitigate risks and potential legal or reputational issues, but also safeguards a company’s long-term success. Especially, investors prioritise companies with reliable governance structures as they signify stability, accountability, and responsible management.

Examples of potential metrics to use for measuring brand’s activity include looking at share of voice (SOV). By monitoring SOV, brands can compare PR efforts with ESG competitors, assess visibility against industry peers, and prioritise ESG initiatives based on stakeholder perception and expectations. Another avenue is by tracking brand and CEO mentions, staying on top of the discussion and addressing negative feedback promptly for improvement. Responsiveness fosters trust and loyalty, while positive mentions reinforce brand reputation.

Ultimately, integrating ESG considerations into brand strategies is paramount in today’s business landscape. By prioritising environmental sustainability, social responsibility, and ethical governance structures, brands can bolster their reputation, attract socially conscious consumers and investors, differentiate themselves from competitors, and mitigate risks. Nowadays, ESG is no longer merely a passing trend; it is a fundamental aspect of building a sustainable and successful brand in the modern business landscape. The metrics introduced above are possible measurement tools to analyse a brands performance in terms of ESG. These metrics are not mutually exclusive and can be used across all three components.

Broad vision, tailored approach

While it’s important to be mindful of the bigger picture, it’s equally important to tailor your approach to ESG according to the regional nuances applicable to your organisation. For instance, in the wake of new laws surrounding GDPR, third-party cookies and heightened awareness of data privacy, companies operating in Americas and European regions should be diligent about demonstrating their compliance and dedication to safeguarding customer’s privacy.

Another example of how ESG can inform PR strategies would be to look at how, in Asian countries, particularly China, pollution has emerged as a matter of concern both locally and globally. With this in consideration, enterprising businesses wanting to expand to Western markets could mindfully leverage their PR endeavours to demonstrate their commitment to minimising air pollution. This is a great way of showcasing prudence and conscious effort, which in turn helps gain respect from consumers and investors alike.

In closing, the importance of holistically understanding ESG and identifying the right metrics cannot be emphasised enough. Incorporating ESG considerations into PR strategies is indispensable in the process of establishing a brand as responsible, credible and trustworthy. Not only does this approach appeal to socially conscious consumers and investors who prioritise sustainability, ethical practices and social impact but a strong ESG proposition also enables organisations to tap new markets and expand in existing markets.

Read more about ESG measurement and how Meltwater can help your organisation with earning consumer trust through ESG PR in our Guide To Modern PR.

To see the original post, follow this link: https://www.bizcommunity.com/Article/196/422/238857.html





Should sustainability professionals (still) be working to make themselves redundant?

18 04 2023

Photo: edie.net

An ever-growing cohort of businesses claim they have ‘fully embedded’ sustainability. So, as business strategies and sustainability strategies become one and the same, should sustainability teams be working to end the need for their function? By Sarah George from edie.net • Reposted: April 18, 2023

It’s a question which leaders in the profession have been mulling for several years. When edie was founded 25 years ago, corporate sustainability was in its infancy. Many firms had no dedicated staff and those that did either tasked them with a compliance-based to-do list or with carrying out philanthropic initiatives on the periphery of core business.

Fast-forward to the 2020s and the perfect storm of top-down (regulatory changes, new scientific research) and bottom-up (growing public awareness and activism) pressures – as well as physical risks crystalising in this era of polycrisis – are prompting smart businesses to see their core strategy and sustainability strategy as the same thing.

Beyond mergers of strategy documents, this prioritisation can be seen in the trends towards integrated financial and ESG reporting and towards giving board members environmental KPIs. A PWC-led study published in February concluded that more than three-quarters of large businesses have now linked executive pay outcomes to climate targets, up from less than 50% in 2020.

And, promisingly, in edie’s recent survey of hundreds of energy and sustainability managers, 91% said their chief executive was ‘somewhat’ or ‘very’ engaged with ESG. The proportion stood at 81% for the wider board.

But, of, course, a company’s culture does not hinge solely on executives. Mary Kay Cosmetics’ founder Mary Kay Ash is often quoted as saying that “a company is only as good as the people it keeps”. Sustainability professionals will need to embed culture beyond the C-suite if they are to ever make themselves redundant.

There is a growing body of research to prove that the workforce of the 2020s are increasingly seeking employers with strong ethics. But there is also a wealth of proof that, for most people in their day-to-day job, there is confusion on how to be part of the solution to big, global challenges like the climate crisis.

Are you an agitator or an ambassador? 

To help turn intention into impact, a growing number of businesses are now assigning ESG-related KPIs to all staff. One such business is innocent Drinks, which exceeded a pledge for at least 90% of employees to have such a target in 2020.

“As we know, working for a business you are proud of is becoming more and more important to staff …  But it’s one thing to know that a company cares about these issues, and knowing what you can do at your level is a bigger question,” explains innocent’s head of force for good in the UK, Emilie Stephenson.

To ensure that all new staff know what is expected of them in terms of ESG, every role description now assigns a related responsibility. Social media and communications staff, for example, are tasked with increasing discussions on topics like climate. Operations and procurement team members are told their work is key to reducing waste and emissions – not just to keeping smoothies and juices on shelves.

For existing staff, Stephenson explains, KPIs have been effectively retrofitted through regular updates to personal development plans.

Beyond giving staff targets, innocent makes a point of considering how their personality and skillset could best aid delivery. Since the mid-2010s, staff have been encouraged to work with their line managers to determine whether they are an  ‘agitator’, ‘activator’, ‘ambassador’ or ‘protector’.

Stephenson says: “I think it works because it’s so tangible – people understand what it is and they can talk to people about it. This, and the language itself, is motivational.”

Many board members are natural ‘protectors’, as they have the seniority to hold teams accountable for taking the actions needed to reach sustainability ambitions. ‘Activators’, meanwhile, specialise in taking the action, delivering specific projects on the ground.

‘Ambassadors’, meanwhile, share innocent’s work with others and advocate externally for a greater focus on sustainability in the private sector and beyond. And being an ‘agitator’ is the most common choice; these people scrutinise current strategies and practices to suggest potential improvements.

Blended roles and B Keepers 

Linked to the ‘protector’ role is the role of ‘B Keeper’ – a new title which came into being through innocent’s certification as a B Corp in 2018, and is linked to the protection of B Corp status. In Stephenson’s opinion, the B Corp certification process helped to provide a more “solid framework” of focus areas for staff. She also recounts hearing some team members who were typically not the most vocal speaking up and taking responsibility for certain sets of points during the process.

A similar experience is recounted to edie by Heather Lynch, head of impact and sustainability at fellow B Corp Oddbox. The business, which sells boxes of fruit and vegetables that would otherwise have gone to waste, became a B Corp in 2020 and is currently in the process of re-certifying.

Oddbox is a mission and vision-driven brand, Lynch explains. The mission is fighting food waste. The vision is of a world where all food grown is eaten.

“I see mission and vision as the ‘what’, and the B Corp as a framework for the ‘how’,” Lynch says, adding that the first B Impact assessment prompted a “thorough stock-take of opportunities” and the second as providing a “framework for tracking progress”.

One key opportunity identified through certification was to upskill staff. 70% of Oddbox’s staff have now completed an eight-hour carbon literacy training course, and the business is targeting at least 90% by the end of the year. As Lynch explains, this training ensures that staff have a base understanding of carbon jargon and climate science – and that they are clear on their role in the business’s delivery of net-zero emissions by 2030.

So, most Oddbox staff are officially carbon-literate and several of them are B Keepers. Beyond that, some managers have blended roles, due to their role in creating and delivering the sustainability strategy.

The operations team co-created the firm’s net-zero strategy, with support from Lynch and her junior, plus external consultants. As such, senior operations team members are effective net-zero managers, responsible for delivery and reporting. They are also helping senior logistics and packaging staff to do the same.

“Ownership is just as important as, if not more important than, awareness,” Lynch says. “That, I feel, has been really powerful.”

Ownership is a sure-fire way to ensure that people do not feel strategies or targets are being put on them from the top-down, landing them with an extra burden. Co-creating strategies with staff and emphasising the particular benefits to each group is a tactic gaining popularity far beyond Oddbox; the practice is often called green jiu jitsu and there are specific training courses.

The final say  

So, say your business has taken similar steps to Oddbox and innocent. It has a long-term sustainability strategy backed up with interim goals, and governance mechanisms in place to report against these and keep them on board members’ desks. Your staff all know exactly what role they have to play in contributing to goals, and relish taking that action.

Do they still need you?

“I don’t necessarily think there needs to be a separate sustainability function, but there needs to be space and time to think about – and plan for – sustainability over the long-term if not,” Lynch says.

She also emphasises how, even if sustainability is embedded, reporting and employee engagement are ever-evolving pieces of work. On the former, her junior is a sustainability data analyst, and she recounts how the addition of this role has left her with more time for “strategy, influencing, holding people accountable and also researching for the future”.

innocent’s Stephenson, however, believes that most businesses are not quite ready to hold that space for sustainability without having in-house experts.

She says: “Douglas [Lamont, former innocent chief executive] has previously advocated for sustainability being embedded in all teams and, therefore, not needing a separate team. My hunch is that this work is not done yet.

“Yes, everyone should be incentivised to play their part. But you still need a leader, there’s still that need for someone to co-ordinate centrally.

“In due course, yes, I’d love to be made redundant. But, at the moment, when you’ve got strategy to develop and deliver, when staff have conflicting priorities, I’d say you still absolutely need someone to hold the torch.”

It bears noting that while innocent and Oddbox are both B Corps, their staff cultures are doubtless very different. Oddbox, for example, that it has a far smaller – yet far more rapidly-expanding – staff base. It has around 75 staff, up from less than 20 in 2019. innocent has more than 760 staff.

Moreover, Oddbox was founded on that aforementioned mission of fighting food waste. While innocent’s founders have built a company often regarded as an exemplary specimen for purpose-led business, they were initially looking for a reason to leave corporate jobs to be their own boss – and the popularity of their smoothies at a music festival proved to be that reason.

So, one could only imagine the situation at even bigger, older, less agile companies, who still either publicly state their purpose as creating value for shareholders or are so frequently accused of purpose-washing. Such firms may say that they have ‘embedded sustainability’ or that it is ‘in their DNA’, but they may have only just hired their first senior specialist – let alone be ready to make them redundant.

To see the original post, follow this link: https://www.edie.net/should-sustainability-professionals-still-be-working-to-make-themselves-redundant/





PwC: Businesses need to be prepared for unpredictability – whether that’s policy, climate or consumer change.

13 03 2013

Melting-ice-polar-bear

PricewaterhouseCoopers, the world’s largest professional services firm, points to a catastrophic future unless radical action is taken now to combat climate change.

“The new normal for businesses is a period of high uncertainty, subdued growth and volatile commodity prices. If regulatory certainty doesn’t come soon, businesses’ ability to plan and act – particularly around energy, supply chain and risk – could be anything but ‘normal’.” said Malcom Preston, PwC’s global lead, sustainability and climate change. 

PwC says any investors in long-term assets or infrastructure — particularly in coastal or low-lying regions — need to consider more pessimistic scenarios. Sectors dependent on food, water, energy or ecosystem services need to scrutinise the resilience and viability of their supply chains. More carbon-intensive sectors need to anticipate more invasive regulation and the possibility of stranded assets.

The trigger for its dire warning comes from the failure of the global community to reduce carbon emissions by anywhere near the amount needed to restrict temperature rises.

“Business leaders have been asking for clarity in political ambition on climate change,” says partner Leo Johnson. “Now one thing is clear: businesses, governments and communities across the world need to plan for a warming world – not just 2C, but 4C or even 6C.”

PwC’s latest report shows the required improvement in global carbon intensity to meet a 2C warming target has risen to 5.1% every year from now to 2050. The improvement in 2011 was just 0.7% despite the global economic slowdown, and since the turn of the century the rate of decarbonisation has averaged 0.8%.

“It’s the boy scout motto – be prepared,” says Jonathan Grant, PwC’s director for sustainability and climate change. “Businesses need to be prepared for unpredictability – whether that’s policy, climate or consumer change. Extreme weather events have become more common, and unpredictability looks set to increase. Businesses that have failed to prepare will find it difficult to keep their operations running smoothly as the risk of disruption increases.

PwC, the largest of the big four accounting firms, points out that even if the 5.1% improvement might be achievable in the longer term, it is unrealistic to expect that decarbonisation could be stepped up immediately – which means that the reduction required in future years is likely to be far greater.

“We have passed a critical threshold – not once since the second world war has the world achieved that rate of decarbonisation, but the task now confronting us is to achieve it for 39 consecutive years,” says the report.

It adds: “Even doubling our current rate of decarbonisation would still lead to emissions consistent with 6 degrees [C] of warming by the end of the century. To give ourselves a more than 50% chance of avoiding 2 degrees [C] will require a six-fold improvement in our rate of decarbonisation.

“Governments’ ambitions to limit warming to 2C now appear highly unrealistic. This new reality means that we must contemplate a much more challenging future. Whilst the negotiators continue to focus on 2C, a growing number of scientists and other expert organisations are now projecting much more pessimistic scenarios for global temperatures. The International Energy Agency, for example, now considers 4C and 6C scenarios as well as 2C in their latest analysis.”

Grant add: “Tools like real options analysis, developed as part of the investment decision-making process in the oil industry for example, analyse the impact of significant uncertainty on a decision.

“Working with our clients, the reality is we will have to advise on a much wider range of climate scenarios. Resilience is the watch word. Businesses need to get engaged on the areas materially relevant to their business. For example if you’re a consumer goods company you need to consider the longer-term security of supply of the resources you need, where you will source them from, and the more day-to-day issues of how you deal with the potential for disruption to their supply or delivery caused by extreme weather events.”

PwC’s report says there will need to be radical transformations in the ways the global economy currently functions, a rapid uptake of renewable energy, sharp falls in fossil fuel use or massive deployment of carbon capture and storage, removal of industrial emissions and halting deforestation.

It also warns against seeing the dash for gas as a long-term panacea. While the boom of shale gas in the United States may buy some time to help limit emissions growth, low prices may also reduce the incentive for investment in lower-carbon nuclear power and renewable energy.

This post is adapted from an original article in The Guardian.  

http://www.guardian.co.uk/sustainable-business/blog/pwc-climate-change-reduction-business-investments