Four cases that will help you build effective ESG communication strategies

Examining real-world case studies offers valuable insights into the successes and pitfalls of ESG communication. Successful examples often demonstrate how organizations effectively conveyed their ESG efforts, leading to enhanced trust and stakeholder engagement. Conversely, failures in ESG communication, such as incomplete reporting or inconsistent messaging, can lead to criticism and reputational damage. Here are two good and two bad examples which we hope will provide you with a roadmap for building more effective ESG communication strategies:

1. IKEA

IKEA has demonstrated strong ESG communication through its commitment to sustainable practices and social responsibility. The company’s People & Planet Positive strategy outlines its goals and progress in areas like renewable energy, sustainable sourcing, and worker welfare. Their communication is both strategic and transparent. They regularly publish detailed sustainability reports and updates on their website, and their marketing materials often highlight their ESG initiatives. IKEA also engages with customers through campaigns that emphasize their commitment to environmental and social issues, reinforcing their brand as a responsible and forward-thinking company.

2. Unilever

Unilever has been a leader in ESG communication, particularly with its Sustainable Living Plan. The company integrates ESG principles deeply into its business model and communicates these efforts effectively. Their communication is transparent, detailed, and accessible. Their sustainability reports provide comprehensive data on environmental impact, social contributions, and governance practices. The company also uses a variety of platforms, including social media, to engage stakeholders and showcase progress. Their consistent and clear messaging helps reinforce their commitment to sustainability and builds stakeholder trust.

3. Volkswagen

The Volkswagen emissions scandal, revealed in 2015, is a significant example of poor ESG communication. The company was found to have used software to cheat on diesel emissions tests, undermining its environmental claims. Their ESG communication was misleading and dishonest. The company’s earlier claims about its environmental responsibility were contradicted by the scandal, leading to a severe loss of trust. The initial response to the crisis was also poorly handled, with vague statements and delays in addressing the full extent of the problem. The lack of transparency and failure to promptly and openly communicate about the issue exacerbated the damage to their reputation.

4. Nestlé

 Nestlé faced criticism over its sourcing of palm oil, which has been linked to deforestation and environmental destruction. Their communication on this issue has been criticized for being inconsistent and lacking in detail. While the company made commitments to source palm oil sustainably, there were concerns about the actual implementation and monitoring of these commitments. The lack of detailed reporting and failure to address ongoing issues openly contributed to skepticism about their ESG efforts.