By | Brian Yeung | www.entrepreneur.com
The rise of environmental, social and governance (ESG) has set the new gold standard of corporate leadership, especially for listed companies.
In one global survey conducted in December 2020, it was found that 88% of global public companies have ESG initiatives in place, followed by 79% of venture and private equity-backed companies and 67% of privately-owned companies.
Unlike the “corporate social responsibility” model, ESG provides a framework for companies to document their work and the subsequent consequence on environmental, social and governance aspects.
To date, ESG reporting is mandatory for publicly traded companies in some jurisdictions, such as Hong Kong. But is ESG relevant to listed companies only? Is ESG reporting itself sufficient enough to communicate companies’ ESG initiatives effectively with a hitherto disparate community of stakeholders?
1. ESG storytelling is relevant to companies of any size
As consumers are increasingly concerned about sustainability issues, the right ESG story promises brand relevance and marketability. CGS Survey shows that two-thirds of customers would pay 25% more just to obtain green products.
Such strengthened brand relevance grants corporates a persistent outstanding reputation for 92% of consumers and brand loyalty from 88% of them, as found by Cone Communications, implying increased marketability potential.