The case for investing in ESG comms

ESG and sustainability are critical for businesses today, as they reflect an organisation’s alignment with global challenges such as climate change, social justice, and ethical conduct.
 
But equally important is having an ESG communications strategy that helps shine an honest spotlight on what you’re doing. Here’s why:
 
🔹Mitigating Risk
Risk reduction is a major outcome of embedding ESG into your company culture. Neglecting ESG issues can have a negative impact on your finances and reputation. In worst-case scenarios, it can lead to costly legal settlements and even result in illness and fatalities.
 
This segues neatly into comms role of issues management. A skilled communications professional will develop a thorough issues management program. This can be embedded into your ESG strategy and mitigate risks.
 
🔹Increasing Investors’ Interest
According to a HSBC corporate risk management survey, investors are increasingly considering ESG criteria in their decision-making frameworks. And an average of 80% of CFOs believe ESG criteria are important across both financial investments and supply chains.
 
Why all the interest? Because companies with high ESG scores tend to have higher market value.
 
🔹Retaining Talent 
The workplace is in a different place from where it was a few years ago. The pandemic has highlighted the importance of employee well-being, and climate issues are higher up on people’s agenda. These days, most people want to work for companies whose values resonate with their own.
 
But ESG isn’t only about proving your commitment to the planet. This is where the social aspect also plays a key role. How do you treat employees, and what’s your attitude toward mental health, diversity, inclusion and human rights?
 
The best business leaders take a collaborative and agile approach to what their employees expect.
 
💡The business case for engaging on your ESG agenda is clear. If you don’t, you risk sending investors, employees, customers and other stakeholders to a business that does.

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