Investors have begun to realize how the integration of ESG (Environmental, Social, Governance) is, which has led to increased competition in the ESG & Responsible Investment product market. About 84% of asset owners have already pursued ESG integration in their investment process, while others are still considering it.
From asking whether there is a policy for integrating ESG, asset owners are now inquiring from asset managers how comprehensively they are integrating ESG.
ESG: 5 Tips for Effective Communication
Obscuring or Fabrication of your messages can result in giving the wrong impression. You might end up slashing your own reputation in front of clients and competition.
While you must communicate clearly where and how your processes are comprehensive, you must also be honest about the areas that require active development. For long-term value creation, establishing a clear purpose is of utmost importance. ESG is a crucial tool for expanding the scope of value creation.
Hence, authenticity and transparency are keys to protecting your image.
Although it is necessary to be as comprehensive as possible when explaining simple concepts, jargon should not be leaned on all the time. Jargon can lead to confusion, but so can the overuse of acronyms.
To prevent confusion, it is best to take the ESG shortcut.
Increase the Use of Video Communications
Compared to in-person meetings, video communications have proven to be more resourceful. They are not only cost-effective, but they also save a ton of time. With the pandemic situation, people have been forced to switch to video communication which has silenced even the harshest critics.
Yes, there will always be a need for in-person communication, but the volume of in-person meetings pre-pandemic would be unnecessary when the world returns to normal. It is important for companies to communicate using ESG, and a remarkably effective technique is the use of video conferencing.
The Use of Internal Collaboration
The increased popularity of ESG investment and the need to communicate to a larger group of stakeholders provide the ideal opportunity to invest in corporate communications. It will help you tell your story more consistently.
Most of the time, companies do not make their powerful stories easily available on their websites. This is a terrible mistake. If a company is working on climate change in a social media post, for example, the story should be easily accessible on their company’s website.
Grab Attention of a Broad Range of Audiences
It might seem pretty obvious to target the investor group with ESG communications, but did you know that various stakeholders might also be paying attention. The audience expects organizations to engage across ESG-related issues.
Hence, do not just rely on the corporate sustainability or communications team to communicate to non-employee audiences. Your employees can be trained and educated so they can deliver the message to interested parties with confidence.
Don’t forget that ESG and sustainability are the responsibility of every business unit in a company!