Here, we provide insights into the best practices for strategic ESG communications, with five lessons from three top-performing companies in Sustainalytics’ universe. Key lesson one: Take an ‘always-on’ approach to communicating about ESG
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“We strongly believe that over-communicating what we are doing is key to maximising our impact for our stakeholders,” says Carlota Pi, co-founder and executive president of Holaluz Clidom. “We were born with ESG in our DNA, which is reflected in our commercial reports, corporate reports, internal communications, and financial reports, ensuring that our potential and existing stakeholders understand our approach.” A clear view of your company’s current ESG journey demonstrates commitment to your customers and investors and can help motivate your internal teams to improve. Key lesson three: Approach investor conferences through an ESG Lens Communicating with investors about your ESG performance can be a daunting task. ESG performance has become an increasingly important set of metrics for investors to inform their investment decisions. A growing segment of investors are looking more closely at ESG to create long-term shareholder value. As you build your ESG communication strategy, creating a plan for engaging with investors and shaping your ESG messaging to meet their expectations is critical. Huang says holding conferences and events for their investors has been a key part of E.SUN Financial Holding’s communication strategy.
ESG exchanges are events where companies gather with industry peers or clients to showcase their ESG performance and share lessons about building an effective strategy for sustainability. E. SUN Financial Holding has leveraged this tactic to connect with its clients. “We organise ESG exchanges to meet directly with our corporate customers,” says Huang. “We listen to their needs and difficulties with ESG issues, suggest transition pathways to sustainability depending on their business circumstances, and provide financial products as our ESG total solution. In addition, we detail our ESG progress and share information about what we learn from ESG evaluations and initiatives, such as Sustainalytics, SBTi, RE100 and DJSI.” These exchanges are a great way to hear new perspectives and gather new lessons to inform your ESG strategy. Key lesson five: Leverage awards as an ESG performance indicator Awards, like Sustainalytics’ Top-Rated Badges, allow companies to communicate the strength of their ESG performance to various key stakeholders. Recognition from impartial, third-party organisations is a quick way to signal to investors that your company manages its material ESG issues well. Awards are also an excellent tool for motivating employees and celebrating their contributions. ASR Nederland, a Netherlands-based insurance provider, leverages its Top-Rated Badge from Sustainalytics for various communication channels. “Our Sustainalytics rating has become part of the story that we communicate to the outside world,” says Barth Scholten, ESG investor relations officer at ASR Nederland. “Being #1 in Sustainalytics’ assessment is a great way to start any investor meeting. This external recognition also means a lot to our employees. It validates our sustainable strategy and goals, which also helps attract new talent drawn to a sustainable employer.” Progressive companies can leverage awards to demonstrate their strong ESG performance for capital raising activities, marketing and promotional purposes, and internal and external benchmarking, among other use cases. Whether you are just starting your ESG journey or already have a detailed strategy, implementing these lessons from some of the top-performing companies in Sustainalytics’ universe can help you tell an ESG story that resonates with your investors, consumers, and employees. Curtis File is the editorial manager of ESG and sustainable finance at Sustainalytics