Environment, social and governance (ESG) is an important part of brand management and issue management. ESG reporting provides transparency and accountability to stakeholders on sustainability, social equity and corporate governance. It’s become a formal way to take credit for building a safer, cleaner, more just world. While ESG reports are often called nonfinancial and non-consequential, they have become one of the pillars of brand management today.
ESG information is an indication of a company’s character and culture.
Investors are scrambling to get their arms around the risks associated with the new normal. Climate change, carbon emissions, supply chain, equality, and human rights represent unknown risks in financial markets.Nearly nine out of 10 millennial investors want sustainable investments. ESG-related instruments have already attracted $35 trillion. The sector will likely exceed $53 trillion by 2025. A recent study found that Millennial investors are twice as likely to invest in companies targeting social or environmental goals, while 72 percent of Gen Z believes in responsible investing. In response, many organizations are embracing sustainability as part of brand management. Many companies now see environmental, social, and governance (ESG) reporting, as a tool to attract customers, investors and financing. It’s also a benchmarking tool that helps stakeholders find the best corporate performers.
In a recent survey, EY found that 82 percent of CEOs embrace ESG as a strategic opportunity. ESG strategy can help a company build customer loyalty, attract and retain loyal employees, attract capital and more.
“ESG is Brand Management 101,” said Gary Chandler, CEO of Crossbow Communications. “If we can keep the green washers out, ESG can be part of the solution.”
In order to realize its full potential, ESG reporting and investing demands consistency and accountability to prevent fraud. The business world must promote trust, good governance and best practices by creating clear standards for ESG reporting. ESG is a tool that can build your brand, your bottom line and a better world. Aim higher with Crossbow.