Clear, Credible, Confident: ESG Communication Strategies that Work

Environmental, social and governance (ESG) has cemented its place as a core expectation in manufacturing and industrial organisations, partly because of customer demand but also due to changing regulations. 

For leaders, the challenge is not only managing ESG as part of their responsibilities and ensuring alignment with the wider organisational strategy, but also communicating policies, practices, requirements and results to all relevant stakeholders. 

Strong communication strengthens trust, and stakeholder confidence, while weak or inconsistent messaging can result in a lack of action and expose the business to reputational and legal risks.

A competent leader communicates ESG through the following steps:

Step 1: Clarifying priorities

Not all ESG issues carry equal weight. Boards, regulators and the community expect leaders to focus on the issues which have a real and measurable impact on performance,and risk reduction. 

Materiality assessments, developed through consultation with stakeholders including employees, investors, communities, minority groups and suppliers, will help identify the most important elements of ESG within an organisation. Leaders who can then articulate these priorities and link them to business outcomes will improve credibility for themselves and their organisation.

Step 2: Leverage data for evidence and transparency

Numbers matter in ESG. Whether reporting carbon emissions, diversity data or governance practices, leaders need to provide transparent evidence and data. 

Using established reporting frameworks (e.g. from the Global Reporting Initiative (GRI)) and demonstrating how figures reflect compliance with Australian requirements from ASIC and the National Greenhouse and Energy Reporting Scheme (to name two examples) will ensure the data you share is relevant and easy to understand. 

Leaders may decide to invite an independent entity to audit and assess data and progress, so ESG reports can stand up to external scrutiny. 

Step 3: Engage and empower stakeholders at all levels

Clear ESG communication requires a holistic approach. The most credible strategies involve and include employees, communities, suppliers and customers, as well as board members and regulators. 

As a leader, you can amplify impact by creating opportunities for teams to share their stories, connecting technical progress to real-world benefits. 

Stakeholders can be kept in the loop via emails, video briefs or updates at all-hands meetings. There should also be a central location where non-sensitive information about ESG policies, and outcomes can be accessed. Jargon-free language, practical examples and visible campaigns all help ESG feel tangible. 

Step 4: Integrate messaging across the organisation (and make it easy to consume)

ESG should align with corporate strategy and brand values, rather than looking like a standalone initiative. BMW’s sustainability report is a good example of a central ESG hub; the look and feel reflect the brand, and the report includes digestible videos and infographics.  

When it comes to integration, where possible, leaders should be able to showcase how endeavours in sustainability and governance link to KPIs such as innovation and long-term results. ESG is more than a nice-to-have, after all; it is a powerful tool to reduce waste and encourage positive growth. 

Step 5: Stay ahead of regulations

Australia’s ESG regulatory landscape is evolving rapidly, with increased expectations around climate disclosure, sustainability reporting, diversity, gender pay gap reporting and governance transparency. Leaders who anticipate changes and align with international best practices are better positioned to protect reputation, and attract investment. 

ESG readiness is a leadership responsibility, and proactively understanding changes and communicating them is part of demonstrating accountability in this area.

Amplify your impact

In the eyes of boards, investors, regulators and consumers, ESG credibility largely depends on how clearly and consistently leaders communicate goals, policies, progress and performance. 

By focusing on what matters most, supporting claims with genuine, easy-to-interpret data, engaging the right stakeholders, integrating ESG across the business and anticipating regulatory updates, leaders can set benchmarks and establish themselves and their organisation as socially and environmentally responsible.

FAQ's