Post by account_disabled on Feb 20, 2024 6:07:48 GMT -5
Environmental, social and governance (ESG) indicators —which essentially serve as corporate governance and investment frameworks—have been moving up the agendas of senior executives, even before the COVID-19 pandemic. 19. The past two years have accelerated that movement, particularly for consumer products and services companies, according to Deloitte .
Sustainability concerns find expression Chile Mobile Number List in purchasing decisions, which are increasingly influenced by perceptions of organizational stances toward environmental stewardship, social justice, and good governance. This means companies have a huge opportunity and challenge to connect ESG with consumers.
Connect ESG with consumers
Organizations that adopt ESG principles will define vision, mission, strategy, tactics and values that consider, measure and report aspects in all three areas of their business. Connecting ESG to consumers means companies can build trust, gain competitive advantage, and better manage their risks by understanding the ESG concerns of stakeholders (customers, suppliers, investors, and others), while avoiding an increase in risk. operational and financial and builds stronger relationships.
According to 3 BL Media , the above is particularly important in the consumer goods industry. Research from the Yale Climate Change Communication Program states that, over the next 12 months, 41% of Americans intend to reward corporations that are taking steps to reduce global warming more often than now. .
Consumers concerned about brands' sustainable practices
Another Deloitte study agrees with the aforementioned, and points out five main consumer concerns related to responsible or sustainable practices which include:
Manufacturing of sustainable packaging and products.
Reduction of waste in the manufacturing process.
Commitments associated with ethical labor practices
Reduction of the carbon footprint.
Respect for human rights.
In other words, customers no longer want companies to have ESG and sustainability strategies: they demand them. This is especially important for Gen Z. The question then becomes, how can companies connect ESG with consumers? And let them know that your efforts in this matter are serious while avoiding falling into greenwashing practices ?
For example, the 2022 Edelman Trust Barometer , based on a survey of more than 36,000 people in 28 countries, found that 58% of consumers will buy or defend brands based on their beliefs and values. In this sense, customers, employees and investors want industries to play a leading role in social change, sustainability and the transition to net zero emissions. Here are four tips to connect ESG with consumers.
4 ways to connect ESG with consumers
1. Transparency in ESG communication
Companies must be responsible for their actions and practices. This includes your retail space, manufacturing, warehouse and distribution, and even your partners in your supply chain. Therefore, this section refers to taking stock of the vulnerabilities that may be faced.
An impact assessment can help resolve this. This focuses on how each area of the business and supply chain is influencing people and the planet. When preparing it, it is important to be honest and identify the most relevant risks, such as fair labor practices in the supply chain, product transparency, agriculture and sustainable packaging, to name a few examples.
2. Include stakeholder participation
Assuming environmental and social commitments involves transformation and collaboration with consumers and other interested parties. To deliver on an organisation's purpose and ambition, it must be able to demonstrate how it will create value for each stakeholder.
Conducting a materiality assessment can help determine the importance and relevance of ESG issues from stakeholder perspectives . Such assessment consists of formal exercises aimed at engaging stakeholders to discover how important environmental, social and governance (ESG) issues are to them. The insights gained can be used to guide strategy and communication, and help tell a more meaningful sustainability story.
Sustainability concerns find expression Chile Mobile Number List in purchasing decisions, which are increasingly influenced by perceptions of organizational stances toward environmental stewardship, social justice, and good governance. This means companies have a huge opportunity and challenge to connect ESG with consumers.
Connect ESG with consumers
Organizations that adopt ESG principles will define vision, mission, strategy, tactics and values that consider, measure and report aspects in all three areas of their business. Connecting ESG to consumers means companies can build trust, gain competitive advantage, and better manage their risks by understanding the ESG concerns of stakeholders (customers, suppliers, investors, and others), while avoiding an increase in risk. operational and financial and builds stronger relationships.
According to 3 BL Media , the above is particularly important in the consumer goods industry. Research from the Yale Climate Change Communication Program states that, over the next 12 months, 41% of Americans intend to reward corporations that are taking steps to reduce global warming more often than now. .
Consumers concerned about brands' sustainable practices
Another Deloitte study agrees with the aforementioned, and points out five main consumer concerns related to responsible or sustainable practices which include:
Manufacturing of sustainable packaging and products.
Reduction of waste in the manufacturing process.
Commitments associated with ethical labor practices
Reduction of the carbon footprint.
Respect for human rights.
In other words, customers no longer want companies to have ESG and sustainability strategies: they demand them. This is especially important for Gen Z. The question then becomes, how can companies connect ESG with consumers? And let them know that your efforts in this matter are serious while avoiding falling into greenwashing practices ?
For example, the 2022 Edelman Trust Barometer , based on a survey of more than 36,000 people in 28 countries, found that 58% of consumers will buy or defend brands based on their beliefs and values. In this sense, customers, employees and investors want industries to play a leading role in social change, sustainability and the transition to net zero emissions. Here are four tips to connect ESG with consumers.
4 ways to connect ESG with consumers
1. Transparency in ESG communication
Companies must be responsible for their actions and practices. This includes your retail space, manufacturing, warehouse and distribution, and even your partners in your supply chain. Therefore, this section refers to taking stock of the vulnerabilities that may be faced.
An impact assessment can help resolve this. This focuses on how each area of the business and supply chain is influencing people and the planet. When preparing it, it is important to be honest and identify the most relevant risks, such as fair labor practices in the supply chain, product transparency, agriculture and sustainable packaging, to name a few examples.
2. Include stakeholder participation
Assuming environmental and social commitments involves transformation and collaboration with consumers and other interested parties. To deliver on an organisation's purpose and ambition, it must be able to demonstrate how it will create value for each stakeholder.
Conducting a materiality assessment can help determine the importance and relevance of ESG issues from stakeholder perspectives . Such assessment consists of formal exercises aimed at engaging stakeholders to discover how important environmental, social and governance (ESG) issues are to them. The insights gained can be used to guide strategy and communication, and help tell a more meaningful sustainability story.