Consumers, employees, neighbors and authorities are attentive to the information that companies provide about their actions in these areas. However, there is still much to be done so that the investment and initiatives of companies are transformed into reputational capital.
RepTrak, strategic partner of Zimat Consultantsdiscusses 8 steps to a successful ESG strategy in “The Ultimate ESG Guide”:
It is never too late to start an ESG strategy, however, companies must be proactive and not reactive, that is, they must take control of the narrative and not wait for a crisis or the demand of some interest group to start doing it.
It is very important to research, learn and stay up to date on the ESG agenda in order to best incorporate it into the organization’s strategy.
- Step 2: Analyze the metrics
It is necessary to collect internal and external data to determine the current state and where the organization wants to go in terms of ESG. HR data and surveys, along with reports from organizations throughout your supply chain, can be a very useful tool to provide organizational context. For example, regular audits can be conducted to determine whether business and social practices are fair.
- Step 3: Determine ESG strengths and weaknesses
The best place to start is very simply, confront all perceptions with honesty and empathy.
It is necessary to identify the expectations that do not align with the actions of the company.
ESG is not an initiative that is applied and forgotten, ESG is constant and consistent actions. This does not mean being repetitive but continually improving.
- Step 4: Involve all business areas, not just marketing
ESG is a shared responsibility. Establishing healthy and continuously improving ESG principles requires many hands. All areas of the organization must be aligned and have shared objectives.
- Step 5: Develop different action plans, including communication
The public may not recognize the ESG acronym or its role in consumer life, but they will continue to demand those standards and adjust their behavior accordingly.
When developing ESG-aligned action plans, communication and dissemination initiatives must be included. Perception is reality, so you have to communicate your efforts and achievements in a way that really informs your target audience.
Just as you communicate about new products or service enhancements, you must constantly and continuously communicate about your ESG efforts.
- Step 6: Go beyond greenwashing
The environmental promises are amazing, but they need to be carried out. You can start by creating a better work experience and carrying out transparency practices.
You don’t have to talk for the sake of talking, you have to make real plans that give real results.
- Step 7: Communicate. Communicate. Communicate
It has already been said in the previous passes, but it is so important that it is necessary to repeat it. What is not communicated, is not known. Communicating is the only way to generate a good reputation.
- Step 8: Power up your ESG cycle
ESG is a permanent and continuous effort. Just as accounting will never close or marketing efforts will never end, ESG initiatives will never end. You have to continue the cycle with these 8 steps, backed by data, and constantly communicate.