ESG: Untangling the riddle wrapped in a mystery hidden inside an acronym

Now and then, we like to pull back the curtain on some of the big issues facing brand and marketing teams – and the business world in general.

One of those big issues is ESG. Environmental. Social. Governance. Three little words that ought to make the world of difference but all too often fall short for reasons ranging from the obvious to the oblique.

And it was this issue – or riddle! – that we tried to untangle at last week’s Mumbrella Finance Marketing Summit with the help of an expert panel moderated by our very own Victoria Berry (or VB, as she’s affectionately known, just to throw another acronym into the mix).

When I first mentioned we were planning an event like this, one reader commented as follows:

“The bar is rising. Research suggest that customers expect all companies they interact with to have strong ESG credentials – so for businesses, this isn’t (or shouldn’t be) a ‘do we/don’t we’ discussion, rather how far do we go and can we/should we seek to differentiate on ESG?”

Reflecting on last week’s discussion, that turned out to be a pretty neat summary of the current state of play and potential for the future – even if the reality is a little more messy.

With that in mind, I thought I might share with you my notes on the panel discussion. I should add that notes is the operative word, no grand insights of my own but rather some clear points, well made by the panellists, that I’ve organised as best I can into five areas to help establish our current position on the ESG map, and the direction in which we might be headed.

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1. Defining ESG

It seems all too easy to be overwhelmed by ESG – what would, could, or should be – but what I also heard is that integrating what your brand and business is currently doing is key to any ESG strategies and initiatives.

Karina Keisler, Interim EGM Public Affairs & Marketing at Golf Australia, shared her perspective that ESG wasn’t necessarily new by posing the question, “How do you talk about what it is that you’re already doing?”

Rob Warren, Chief Financial & Risk Officer at Open Money Group, added that ESG is not one-size-fits-all given that there are “Different levels of understanding on the different parts.”

And Vanessa Liell, Partner & Co-Founder at Orizontas, subsequently built on this by suggesting that ‘E’, ‘S’, and ‘G’ are not created equally across all companies. For example, the focus might be “‘E’ for manufacturing businesses or ‘S’ for consultancy services” and so not all might apply to the same levels of importance or impact.

In other words, defining ESG in strategic ways that are specific to your business and brand – past, present, and future – is a vital first step.

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2. Delivering ESG via brand

The role of brand quickly surfaced in the discussion, Karina commenting that if “Brand means fulfilling the promise you make, ESG is then how ethically you fulfil that promise.”

Vanessa offered something of a reality check with her reflection that “Some brands are doing very little but communicating a lot”, raising the issue of authenticity over green-washing.

And it’s here that I might borrow a statistic I heard in another session featuring Kantar’s Carolyn Reid who revealed that 2 in 5 Gen Zs are “‘Social actives’ [who] believe they can make a difference through their actions – and their actions support their values more than any other generation.”

All of which made me think that the strength of the connection between a brand’s purpose and the everyday experience may well continue to grow more valuable than ever.

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3. Managing ESG over time, not overnight

The risk of overwhelm raised early in the discussion soon evolved into a practical perspective shared by Vanessa that “Everyone’s got to start and at least show intent, very quickly.”

What’s more, it doesn’t need to be perfect from day one, it’s more of an open, strategic discussion to say, “This is what what we need to do, what we’re doing now, and what we’re doing in the future.”

It’s here where I can’t help but insert my own comment on how Apple has conditioned us all to versioning and the same iterative approach can apply to many strategies and implementation plans, ESG included, so long as they’re clearly communicated.

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4. Making ESG real

Rob reflected on Open’s accreditation as a B Corp as it offers “a readymade framework for ESG so we can measure ourselves against it and make improvements.” Which may well make for a very simple and pragmatic start-point for your own organisation’s approach to ESG.

Looking beyond strategy, Karina built on this by describing how it’s the brand’s experience that ultimately determines its effectiveness – how to use ESG to differentiate through strategy and then “Make it tangible for consumers through products and experiences.”

And it’s another point, made wonderfully succinctly by Karina, that sums this up perfectly: “The language consumers understand best is actions.”

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5. Doing ESG together

Partnerships also surfaced as a source of ESG potential, Karina citing the example of the new 42km pipeline that will deliver recycled water to the Kingston, Monash and Bayside communities, home to the golf courses of the Melbourne Sandbelt – an ESG achievement that simply could not have happened without partnership across the spectrum from golf to government.

From Vanessa’s perspective, she reflected on how “Relationships often lack intent and there’s enormous value in those relationships when you’re aligned to achieve the same goals, something bigger and better than you could achieve alone.”

Ultimately, in Karina’s words, “People are the heart of any successful ESG strategy” and that’s a truth I’ve seen reinforced in other studies, including our own FutureBrand Index – as I highlighted in this part of my commentary on last year’s edition of the Index:

What’s more, at a time when ESG is topping the corporate agenda, there’s an extra little detail on page 22 worth noting: that businesses perceived to have a positive ESG impact are also perceived to ‘care about employees’. In my own words, you can’t care for the planet if you don’t care for your people first.

…and that clearly extends to co-opting your people and partners into your ESG endeavours too, as and when the alignment offers the opportunity to do so.

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I hope my notes gave you a good sense of the discussion, wherever you might find yourself or your own brand on the ESG map – like I said, these are merely my notes but hopefully they include some useful pointers too.

Reading back over them, I’m reminded of one of the prompts for proposing this session to Mumbrella in this first place. Not so long ago, I had the opportunity to hear one of Australia’s biggest and most prominent brands showcase its commitment to ESG.

In one word, it was boring.

It was also complicated and amounted to nothing much more than a listicle of investments and achievements. Consequently, in spite of the fact that the achievements themselves were admirable and worthwhile, they were all too easily overlooked.

It’s a situation best summarised by Sir David Attenborough:

"Saving our planet is now a communications challenge.”

In hindsight, perhaps ESG isn’t a riddle wrapped in a mystery hidden inside an acronym after all. It’s just another example of poor branding and communications.

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Let me finish on a brighter note by saying thank you once again to our guests on the panel:

• Karina Keisler, Interim EGM Public Affairs & Marketing, Golf Australia

• Rob Warren, Chief Financial & Risk Officer, Open Money Group

• Vanessa Liell, Partner & Co-Founder, Orizontas

…and to our very own Victoria Berry, Head of Strategy, for moderating the discussion.

I hope you enjoyed reading (or listening if you happened to be there on the day), and please do share your own questions, comments and experiences – as ever, I’d love to hear from you.

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