ESG is rising globally, and companies need a better understanding not only of their investors’ needs for ESG information, but also of how critical it is to improve the company’s ESG investor communications. According to 2021 Gartner CEO and Senior Business Executive Survey, the percentage of CEO’s selecting ESG as one of their top five priorities doubled from 2020 to 2021. The COVID-19 pandemic has accelerated engagement on ESG among companies and investors, making ESG communication increasingly essential.
Here are some aspects of ESG communication that should not be overlooked:
Employee demand for ESG is rising
58 percent of employees consider a company’s social and environmental commitments when choosing where to work. Moreover, over 70 percent of Millennials are more likely to choose to work at a company with a strong environmental agenda. All this implies to a purposeful communication.
Effective ESG communication begins with clear connections to brand, purpose and organizational goals
To succeed in an authentic communication about ESG it means to truly integrated it with the corporate narrative and strategic objectives. ESG issues are sometimes complex, therefore they should be presented in such a way to be easy to comprehend without technical language.
Better ESG communication results in multiple benefits for companies
Companies with well-based ESG strategy are in a better position in the post-pandemic landscape as they are more resilient. Engagement is a key part of resilience and highly engaged employees help companies to significantly outperform their peers. A well-structured communication within the company is an important driver for more engaged employees.
Do not forget that a good communication plan is structured by well-trained employees. Well-educated employees can create more sustainable companies and it is also a tried recipe for long-term success.
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