If you haven’t yet adopted Environmental, Social and Governance (ESG) considerations as part of every project, campaign you work on and business decision you make, you’re in danger of being left behind.
Ethical considerations have never been more important to consumers, whichever sector you work in. We caught up with ESG Clarity’s head of ESG insight Natalie Kenway to get her take on the growing trend. Here are five pieces of advice from Natalie on ESG-proofing your work and legacy.
Engage with the issue
‘Consumers, shareholders and regulators are favouring companies that are transitioning to a more sustainable way of operating. There is a very slow realisation, and I think the pandemic accelerated this, that life and our planet are so very precious and we need to address climate change and societal issues head on. As mentioned above, companies that are looking to improve their ESG credentials are future-proofing their business and those that aren’t will be left behind/won’t exist in years to come.’
Go beyond ‘greenwashing’
‘Regulators are stepping up in terms of their requirements and investors will no longer stand for greenwashing. Reports show investors are asking more from the companies they invest in in terms of evidence of ESG – they won’t settle for lip service and marketing spiel.’
Take note from companies doing it right
‘Groups are being vocal and using their votes to force companies to think about climate change and diversity; Legal & General, Rathbones, Federated Hermes come to mind and BMO GAM.’
Pay attention to what is important to your client base
‘We are seeing consumers increasingly make purchases based on their ethics and morals across all sectors. This is all happening because the demand is there. This is only moving in one direction.’
And if a brand ambassador or a spokesperson for a campaign isn’t on board?
‘Fire them,’ says Natalie.
Want more on ESG? Here are five more reasons ESG needs to be part of your planning this year and statistics on how big business is changing.