What makes a good ESG PR Agency? And more importantly, what makes good ESG communications today?
“ESG”, as a term, is more politicised than ever. The acronym originated as an investment criteria or tool to allow investors to assess climate change risks and opportunities. These days, it is much more loaded.
Companies are facing increasing and sometimes contradictory scrutiny from investors, shareholders and customers, both pro and anti-ESG. Regional differences in how ESG is perceived are widening. An ESG communications strategy can make or break a corporate reputation.
As an agency sitting at the intersection of climate, tech and finance, we’ve seen it all.
Here are five key PR strategies for better ESG communications.
1. Know your audiences, tailor your approach
Each stakeholder and audience group has specific concerns and expectations. Before saying or doing anything, organisations need to have a proper understanding of where each of their audience groups sits in relation to certain ESG issues.
Map your stakeholders according to their strategic and commercial importance to your business, and how they value ESG.
Take investors. The Association of Investment Companies’ annual ESG tracker found that investors’ ‘love affair with ESG investing continues to cool’ but they aren’t rejecting it altogether. Transparency and disclosure are priorities – 60% see it as a key investment consideration.
2. Leverage data
Sustainability reporting has expanded rapidly, especially within the EU.
A growing set of regulations – including the CSDDD, CSRD and SFDR – mean companies must generate and disclose vast amounts of data to comply with evolving transparency standards.
This can feel like a huge drain, especially for smaller organisations. Meanwhile multinational organisations must collect and aggregate data across a complex supply chain and changing regulatory landscape.
Companies that integrate sustainability reporting data into their strategy will gain a competitive edge. Rather than treating these disclosures as only a compliance burden, they can serve as a valuable resource for decision-making and communication. SFDR reporting, for example, requires disclosures on Principal Adverse Impacts (PAIs) and sustainability risks. Use this information to tell stories about how your company is mitigating these risks.
We hear all the time from media that they are after data. It builds trust, validates claims and adds credibility. The best stories are built on robust, quantifiable data – ESG data that firms increasingly have in abundance.
3. Don’t be scared of journalists
We’ve seen the investigations. Journalists, oftentimes in some remote jungle, debunking the claims of carbon offsetting. Seven-thousand-word takedowns showing a promised investment is just a charade.
It’s scary. The media is interested in accountability – and it has meaningfully impacted the reputation of companies. Companies want less focus, less opprobrium, less attacks. They don’t want endless fights with angry stakeholders, or sceptical journalists.
But it doesn’t mean shutting the media off – sometimes called “greenhushing” – is a viable strategy.
Bringing media along the journey, honestly and transparently, can really help. Recently, we spoke with a sustainable finance journalist who said that “corporates always tend to be more suspicious, cagey…that makes things difficult”. Even if it’s off-the-record, upfront conversations about the trickiest issues are almost always worth it.
A quote isn’t always the right option but building relationships usually is. Proper media training will go a long way to prepare spokespeople for more confrontational interactions.
Good relationships with reputable, credible journalists who aren’t looking for click-bait sensationalised headlines, can do wonders.
4. Be prepared the pendulum to swing (but don’t always swing with it)
Interest in sustainability has waxed and waned over the past decade. The tide comes in and the tide goes out.
Last year Walmart said “climate change is one of the greatest challenges of our time. If we don’t take more aggressive action now, the damage will only worsen, and the consequences will be disastrous for this and future generations.”
This year that statement along with others tied to Diversity, Equity and Inclusion (DEI) disappeared from the website.
Yes, it can feel political expedient to keep an eye on Parliaments and executive buildings. But what happens when the pendulum swings back?
Good communications strategy prepares for change. Figure out clear, long-term commitments backed by measurable action and make sure those at the centre of conversations with the market.
Build authenticity through consistency to create resilience inside uncertainty.
5. Select the right partner
The right sustainability communications agency creates a true partnership.
Does every ESG firm need an agency? No. But many do. A great agency brings an outside perspective informed by a keen sense of what’s being said in the market.
Choose an organisation who knows your industry and can get to know your organisation inside out. The right agency will work as an extension of your team (whether that’s a marcomms function or broader executive team), with a robust understanding of the regulatory and communications challenges you face internally and externally.
You’ll be challenged by a strong partner. ESG is no longer about broad commitments, it requires specificity, transparency and alignment with business objectives. A firm will ask those questions and help draft convincing answers.
Even the word ESG is falling out of favour. We increasingly talk about “sustainability.” But the underlining issues haven’t changed – we’re facing climate catastrophe and need an unprecedented marshalling of resources to prevent this. Some solutions are better than others.
Whether it’s developing a data-driven strategy, crisis-proofing messaging, or ensuring you get to the right hard-to-reach audiences, selecting the right agency partner can make a real difference in maintaining trust and reputation in an increasingly scrutinised area.
Holly Edwards is an account director in London focused on sustainability
