Telling your ESG story

Blogs

Telling your ESG story

27th November 2024

For an ethical business, reducing environmental impact, providing opportunities to all, building good community relations and operating sustainably should all be primary considerations.

And for businesses working within the manufacturing and engineering sectors, there are specific considerations relating to Environmental, Social, and Governance (ESG).

For example, with manufacturing and engineering processes often consuming large amounts of natural resources and producing large scale greenhouse gas emissions, pollutants and waste, it’s important that companies take steps to improve efficiency, and implement cleaner technologies and waste reduction practices.

In a competitive market for talent, manufacturing and engineering businesses also need to build good relationships with their local communities and education establishments. Building a positive company culture – and prioritizing employee safety – can also help to reduce turnover and attract skilled workers.

In addition, investors and partners value clear governance policies and good governance practices.

So it’s crucial that an ESG policy is embedded into your business… and implemented effectively.

However, it’s also important that this should also be demonstrated internally and externally.

Here’s why…

Enhancing brand reputation

Communicating your ESG commitment will strengthen your brand reputation – it shows you are helping the environment, supporting diversity and equal opportunities, and are ensuring you are making ethical decisions.

Strengthening relationships with suppliers and partners

Communicating your ESG credentials will help you to build firmer relationships with suppliers and partners who share your values and expect to work with ethical companies.

Winning business

More and more decision makers are considering ethical and environmental practices when making purchasing decisions.

Nine in 10 (88%) of global consumers would choose to buy from companies with ethical sourcing structures in place over ones that did not according to a report by OpenText) and 70% of people would pay an extra 5% for a green product, according to research by McKinsey.

In addition, many tenders include sections on social values and environmental sustainability: you could be at risk of missing out if you don’t have this content prepared.

It’s important to note that the Social Value Act 2012 states that all public bodies must consider how what they are proposing to buy might improve economic, social and environmental wellbeing, and Procurement Policy Note 06/20 requires central government departments to evaluate social value, applying a minimum overall weighting of 10% when assessing bids.

Attracting talent

In a competitive market for talent, communicating your ESG values can give your business an edge in the engineering and manufacturing sector.

Research has shown that many people (especially those from the Gen Z demographic) value employers who demonstrate ethical values and align with theirs. For example, according to Deloitte, 55% of Gen Zs research a company’s environmental impact and policies before accepting a job.

When a company demonstrates a commitment to diversity, fair practices, and employee well-being, it also builds a reputation as a supportive and inclusive workplace. Word gets around.

Retaining talent

If a company is visibly prioritising positive environmental and social impact, employees can feel that their work is more meaningful, which improves job satisfaction. Demonstrating transparency and ethical leadership can also build trust among a workforce.

Communicating a commitment to diversity, equity, and inclusion within ESG also helps to create a welcoming workplace where employees feel respected and appreciated.

Attracting investment

Investors are more likely to engage with companies with strong governance structures, as it indicates stability and ethical leadership.

It’s therefore vital that this is communicated if you need to attract new investment.

So now you understand what the benefits are. But how can you demonstrate your ESG commitments and activities in practice?

First steps…

Firstly, integrate ESG into the heart of your marketing strategy – it shouldn’t be an afterthought or a tick box exercise.

Secondly, you should ensure that there is an ESG strand to your core company messaging and that this aligns to your business values too. Include this ESG messaging in the ‘about us’ section on your website and LinkedIn company page.

You should also consider including a dedicated ESG page on your website, including your messaging and policies – it serves as a good reference point for anyone who needs clarity regarding your credentials. A summary of your ESG content should be included in your proposals/slide decks too.

It’s also important that the structure of your core team and board is made clear on your website.

Spreading the word…

Every business has a wealth of stories to tell, which can help to convey ESG credentials. For example, you could be running an apprenticeship programme and providing a route for young people to develop, engaging with schools and colleges around STEM, or partnering with community initiatives and projects. Your business may have invested in less energy intensive equipment and processes, introduced cleaner technologies or be innovating in waste management processes.

Here are some activities and channels to consider when communicating ESG… and sharing that news.

Enhance your website content

As well as ensuring you have a page dedicated to ESG on you website, news on ESG activities should be published on a news or blogs page – and this should be kept up to date.

Use the power of social media

LinkedIn is a powerful communications tool for conveying ESG credentials to decision makers, and Facebook, Instagram and TikTok can reach wider (and in many cases younger) audiences.

You can use social media to publicise volunteering work, announce new investments in greener equipment/energy sources, highlight your apprentices and promote your work with schools and colleges – these are just a few examples.

Raise awareness through awards

Many award events have ESG-related categories. The forthcoming Insider Made In The North East Awards, for example have a ‘Sustainable/Ethical Manufacturer of the Year’ award and the Make UK Awards have categories for Energy & Sustainability and Health and Safety and Wellbeing.

Being shortlisted (or hopefully winning) an award can highlight your efforts to decision makers and the wider business community, recognise the work of your team and enhance your profile. It’s great PR!

Speaking of which…

Think PR

Ensure media outlets know about your environmental practices, groundbreaking processes, apprenticeship schemes and support for your local community.

You can do this by distributing press releases and pitching to appear in special features, interviews and podcasts.

Trade titles will help you reach relevant industry decision makers, while regional media will help you engage with local communities and supply chains.

Don’t forget the networks

Industry networks provide an effective platform for conveying your ESG credentials. They can offer:

  • Opportunities to host events and showcase initiatives
  • Speaking opportunities
  • Social media amplification
  • The chance to spread good news through regular newsletters and other communications channels

Demonstrating results

It isn’t enough to simply say you have an ESG policy in place…

You should outline your ESG goals, strategies, and progress in specific, measurable terms, and use quantifiable metrics (e.g., reducing carbon emissions by 20% over five years) to show progress and make your ESG goals understandable. Clear metrics will demonstrate accountability and help stakeholders track your impact over time.

You might consider producing a regular ESG report for stakeholders which outlines the progress you are making. Webinars, Q&A sessions, or ESG-specific surveys can also engage stakeholders.

Finally, if you have been awarded a relevant certification, such as B Corp certification, ensure that this is communicated on your website and via other communication channels.

Need support in shaping your messaging around ESG? Require a partner who will help you communicate your commitment to ESG to the right audiences. Our team of marketing specialists can help you.

Contact us for a chat here.