Published on December 14, 2021
ESG marketing is the activity of promoting the material environmental, social and governance attributes of a company’s strategy to its investors, buyers and other stakeholders in alignment with corporate purpose and mission. A company’s ESG marketing message builds its brand equity, financial worth and potential for true social impact.
Consumer habits have taken on a sustainable tilt in the post-pandemic landscape, and most investors have adopted ESG principles in the last five years. The rulebook is still being written on responsible investing, so guiding a brand’s corporate purpose will provide clear product differentiation.
Public relations and content marketing can shine a light on authentic, impactful sustainability efforts and communicate their impact, connecting with the consumer’s deeply held values, a process we call purpose branding.
Putting ESG principles into practice attracts investors and impact-conscious customers. Sustainable funds have consistently set investment records, according to Morningstar. Younger generations of investors have an eye for responsible brands, with almost two-thirds of Millennial investors highly interested in sustainable investing.
The real challenge lies in turning the ideological into the material. Just as operational teams work to better understand ESG, marketing and communication teams must understand ESG materiality, the factors that have the greatest impact on financial performance. By helping people discover more about the purpose behind a brand, marketing provides greater differentiation from competitors and highlights key brand attributes and benefits.
Distilling brand impact in a brand-building strategy connects and engages a target audience with corporate purpose. ESG investors and caring customers alike respond to concise, consistent, and transparent corporate practices that prioritize real results over lofty declarations.
ESG faces the charge of “woke capitalism,” a decarbonization debate that has expanded into a broad critique of corporate activism. The political discourse on ESG is largely unfocused, which gives organizations an opportunity to frame the discussion around business objectives.
Delivering a clear ESG message is crucial in securing legislative and regulatory approvals. Staying silent on ESG is a missed opportunity to communicate an organization’s risk management practices and its commitment to stakeholders.
Companies should focus their attention on responsible practices that align with regulatory requirements, lower direct financial risk and provide opportunities for innovation and growth. Showcasing the business practices, brand values and initiatives behind a corporate ESG plan will build internal and external credibility and trust.
Consider the following ESG marketing strategies to shape marketing efforts and tell the brand’s ESG story:
A deliberate marketing approach brings a brand’s ESG strengths in view of the right customers and investors. ESG public relations and content marketing efforts should focus on results that matter for specific audiences:
ESG’s business materiality should be reflected in brand values. ESG brand values typically are aligned with overall corporate values. The hallmarks of ESG brand values are:
Every business is connected to environmental, social and governance issues. Implementing and marketing ESG efforts simply means that a brand has the self-awareness to recognize its place in the world and the ambition to improve on it.
Companies, like countries, need to be purpose-driven and energized in the face of environmental, social and governance issues. Tell the public how they can help leverage brand resources to protect the planet, then lead by example. After all, what’s more important than working together to make the world a better place?
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