We live in an increasingly polarised world, a world where crucial ESG issues are hijacked for political talking points, greenwashing abounds, and profit almost always trumps people and the planet. Against this backdrop, it’s no surprise that people feel disengaged, distrustful, and disinterested in companies’ ESG pledges and promises.
From supply chain slavery coverups and fossil fuel fashion people have been misled, tricked, and conned for years. Winning back their trust won’t be easy.
But, this is not an excuse for companies to draw back into the shadows and stay silent – a practice known as greenhushing. And the research shows that consumers don’t want this either.
In fact, recent research from SEC Newgate found that of the 14,352 people it surveyed across 14 countries and territories, including the UAE, close to three in four people want companies to communicate more clearly about what they are doing to improve their performance on ESG issues. In the UAE, the figure rose to 84 per cent.
“Beyond hurting brand reputation, damaging consumer trust, and putting off potential talent, global greenwashing regulations are emerging left, right, and centre, and while there remain plenty of loopholes, the crackdown has begun.”
Clear ESG communications begin with good data. Without robust data collection and verification processes, companies are left scrambling in the dark.
Utilising this data and evidencing your progress—and room for improvement—provides a foundation of transparency, and when it comes to consumers, this goes a long way.
One 2018 survey of US consumers by Social media management and analytics software company SproutSocial found that 89 per cent of people said a business could regain their trust by admitting to a mistake and being transparent about the steps taken to resolve it. Meanwhile, 85 per cent were more likely to stick with a brand during crises.
But lesson one of company anti-greenwashing class 101 is: Act before you speak.
There are a myriad of severe consequences if companies decide to take the opposite direction.
Beyond hurting brand reputation, damaging consumer trust, and putting off potential talent, global greenwashing regulations are emerging left, right, and centre, and while there remain plenty of loopholes, the crackdown has begun.
And then, companies must continue to walk the talk. As a result, it’s essential to provide evidence that ESG isn’t just a once-a-year activity but, instead, embedded into overall corporate strategy as part of your DNA.
ESG is a journey, a process of business transformation, so communicate this with consumers and let the actions you’re taking be demonstrated authentically, with a particular focus on their impact.
But just as ESG is a company journey, for consumers, it’s also a learning process. While companies might be making significant headway on their pledges and promises, it won’t reach the right ears without the right action. So, it’s crucial to discuss ESG data in an accessible way.
For those in the ESG bubble, where Scope 3 and double materiality are part of their daily lives, keeping things complex and corporate might be something that’s difficult to break free from. But it’s essential for better consumer engagement.
Cut the jargon and explain complex terms in a way that democratises ESG knowledge without patronising consumers.
Finally, collaboration is the cornerstone to success. If companies lack the internal skills and experience to create a transparent, engaging and impactful ESG communications strategy, bringing in the experts will be a gamechanger.
As the climate crisis intensifies, one abundantly clear message is that collaborative action is vital to climate change mitigation and adaptation – and the same goes in business.
Knowledge-sharing is fundamental to solving the ESG comms in crisis, preventing missteps, mistakes and miscommunication.
By Sal Jafar, CEO, ESG MENA
