Comms teams: bridging the gap between ESG data and sustainability narratives
Experts Thil Sathyamoorthy and Adrian Segens shed light on evolving reporting regulations and explain why accurate data is key to building credible comms strategies and stakeholder engagement for the final piece in our three-part series.
Amid growing public scrutiny and more stringent ESG regulations from bodies such as the International Sustainability Standards Board (ISSB) and the Financial Conduct Authority (FCA), comms teams play a critical role in ensuring published narratives are genuine, compliant, and accurate.
New rules and reporting standards introduced in recent years to combat greenwashing have reshaped corporate disclosures on supply chains, social impact, and carbon emissions, demanding greater transparency to meet regulatory and stakeholder expectations.
As with many business challenges, confident and verifiable comunication comes down to reliable data – ensuring figures are accurately captured from the start. Whether tracking energy consumption or internal recycling, precision is paramount – not just for compliance but for maintaining credibility with employees, investors and an increasingly scepitcal public .
Thil Sathyamoorthy, says the regulatory need is becoming “more ingrained and pervasive”.
With new rules like the Corporate Sustainability Reporting Directive (CSRD) on the scene – an EU rule obligating all large and all listed firms to explain how they monitor a range of ESG issues – sustainability consultant Thil Sathyamoorthy says the regulatory need is becoming “more ingrained and pervasive”.
According to Sathyamoorthy, this is “driving the need to have that [sustainability] data and to be able to measure it accurately”.
“Companies can't report inaccurate information to regulatory authorities,” he adds.
Delving into the data at product-level
Sustainability is also a key area of interest for consumers, with 54% willing to pay a premium for sustainable products and services*. This stakeholder group wants to know the credentials of products and services and, ultimately, how these goods will impact the environment.
“Unless you have that accuracy of information around your products and services, you don't have a story to tell and you don't have something that is challengeable. That can lead to a credibility issue,” says sustainability tech consultant, Adrian Segens.
Segens, founder of start-up business Leveller Tech, points towards tech brand Philips as his “poster child for environmental sustainability”, suggesting that the firm does a good job of communicating accurate information right down to the product level.
“[Philips] has that information for each of its products, and they've made that against a benchmark of their competitors, too. For any claim that they make, they can back it up with a lot of data and, when they do communicate what their sustainability objectives are as a company, they get that across very well on each of their products,” he adds.
Electronics firm Philips – a ‘poster child’ for sustainability – boasts a flagship biodiversity site at Best, in the Netherlands, where nature is an integral part of the campus. (credit: Philips)
The need for ‘clear’ sustainability data and information
The validity of sustainability data is a topic that has been under the spotlight for several years, with greenwashing high on the public agenda.
“Greenwashing still makes companies nervous and rightly so,” explains Sathyamoorthy. “When companies didn't have access to clear information, data and baselines, there was a vagueness that allowed, in some cases, for organisations to come up with claims that weren't necessarily founded on fact, which can cause a much bigger problem.
“If a company gets caught in a greenwashing scandal, which then goes public, you’re then into a reputational damage limitation exercise which is what all companies want to avoid.”
Sustainability comms inside and outside your business
Investors are increasingly using sustainability credentials to inform investment decisions; PwC's 2023 Global Investor Survey found that three-quarters of investors consider ESG issues to be part of their investment plans.
For this group of stakeholders, Sathyamoorthy explains, comms teams need to “communicate with confidence and engage them in a way that you previously didn’t have to around this type of information”.
However, internal stakeholders should not be overlooked when it comes to communicating your sustainability strategy.
Adrian Segens: “Accuracy is key to credibility” when it comes to sustainability narratives.
As companies strive for more sustainable practices, managers at varying levels are being asked to make decisions based on environmental and social impact. “It’s almost instinctive that you’ll make a decision based on a financial cost-benefit,” Segens explains, “but now we’re asking people to make decisions with an environmental dimension”.
This is where correct data and sustainability communications come in. “Unless you have that accuracy of information, you can’t make decisions. For example, if you’re making a decision about the design of a product, you can easily fall into perceived wisdom about what makes a product greener,” Segens continues.
An evolving landscape
As regulatory reporting demands evolve and stakeholder expectations rise, comms teams must make sure that the information they are sharing is transparent, accurate and true.
This is critical for brands wanting to prevent greenwashing claims, meet investor expectations and demonstrate a genuine commitment to environmental and social impact. Bridging the gap between technical ESG and strategic messaging, comms teams play a crucial role in shaping narratives that satisfy regulation requirements and societal demands. As the landscape continues to evolve, staying informed is no longer optional – but essential.
*Simon-Kucher study