ESG: A New Frontier in Business Communication

Business leaders are naturally skeptical when confronted with a new acronym, and those unfamiliar with ESG may initially perceive it to be an added layer of complexity on top of an already complex communications function.

A better way to understand environmental, social and governance (ESG) considerations is as an opportunity to tell the story of your organization’s unique culture and ability to affect financial and societal change.

Many companies large and small have decided to fully embrace ESG and use it as a point of differentiation in the market. This communications strategy can be viewed as having entirely financial goals in that it improves the customer relationship. For example, a consumer-facing business can let its customers know about a commitment to improving environmental impact (that would be an “E” message). A business can explain its efforts to diversity the board, top management and the employee base (“S). A board can explain how carefully executive compensation is aligned with shareholders (“G”).

Privcap Media has extensive experience helping clients execute a plan to tell the story of ESG goals and capabilities. The use of video and other digital formats is highly effective at helping viewers visualize the relationship between corporate culture, decision-making, and measurable outcomes.

We recommend being very proactive around this messaging opportunity because interest in ESG is rising quickly, and no business wants to be perceived as a reluctant latecomer to a principled stance.

To take an observation from one industry we know well - private equity - consider the views of Chris Sand, a Managing Director at global investment firm Ardian, who argues that ESG demand from institutional investors (the backbone of the private equity industry) is accelerating: “There are lot of investors out there looking to achieve something in sustainability. I don’t know yet if they’re seeing tangible results. While I do think that many funds in the US have caught on and are focused on this, I don’t think there is a level of preparation here like there is in Europe. I think it’s going to come faster to the US than people anticipate.”

Consider getting ahead of the ESG wave, which is changing the way businesses around the world are explaining themselves. Privcap Media can help.